Negative ProfitabilityPersistently negative gross, EBITDA and net margins mean the business is not yet converting revenue into sustainable profits. Continued unprofitability forces reliance on external funding, delays reinvestment, and raises the risk that scale alone may not resolve unit economics without structural margin improvement.
Cash Burn And Negative FCFNegative operating and free cash flow indicate the company needs external financing to sustain operations and growth. This cash burn increases dilution or leverage risk, constrains self‑funded capex and execution, and heightens vulnerability to tighter financing conditions or higher borrowing costs over the medium term.
Decreasing Equity RatioA declining equity ratio reflects rising liabilities versus assets and a weakening solvency buffer. Over time this trend can elevate funding costs, amplify refinancing and covenant risks, and reduce strategic flexibility—especially problematic if operating losses and cash burn persist.