Persistent Net LossesContinuous net losses over multiple years have eroded retained earnings and signal the company has not yet achieved durable profitability. This weakens shareholder equity, constrains internal funding for growth, and means future value creation depends on a credible path to sustained positive net income.
Negative Gross Profit & Operating LossA negative gross profit indicates revenue does not cover direct costs, pointing to structural pricing or cost issues. Even with positive EBITDA, negative gross and operating profits suggest core business unit economics are not yet healthy, limiting durable margin expansion until raw cost or pricing dynamics are fixed.
Declining Equity BaseA multi-year decline in equity reflects cumulative losses and weakens the capital base, reducing financial flexibility. Over time this heightens vulnerability to shocks, may force dilutive financing or constrain strategic investments, and makes recovery more difficult without a sustained return to profitability.