Negative Operating And Free Cash FlowSustained negative operating and free cash flow means the business is not self-funding and requires external financing or equity dilution to sustain operations. Persistent cash burn constrains reinvestment, limits runway for product development or sales expansion, and elevates financing and dilution risk over the medium term.
Declining Revenue And Sharp Profitability DeteriorationA material revenue decline coupled with deep net losses undermines unit economics and margin sustainability. Even with prior-year profitability, the current negative trajectory threatens long-term scalability, increases the need for restructuring or capital, and weakens the company's ability to invest in durable competitive advantages.
Acquisition Execution And Equity-funded Deals RiskThe Kustom deal is non-binding and largely equity-funded, creating execution and dilution risk; reliance on equity transactions and recent private placements signals ongoing financing needs. If deals fail or require more equity, shareholder dilution rises and integration risks could erode the expected revenue and margin benefits.