Negative Cash FlowPersistent negative operating and free cash flow forces reliance on external financing, which can dilute shareholders and constrain strategic investments. Over 2–6 months, continued cash burn raises execution and funding risk, limiting the company's ability to self-fund growth or absorb shocks.
Sustained Net LossesOngoing negative EBIT/EBITDA and sizeable net losses erode equity and hinder return generation. If margins fail to improve, the company faces structural profitability risk that can reduce investor confidence, complicate partnership negotiations, and require repeated capital raises over the medium term.
Gross Margin VolatilityMaterial gross margin variability undermines predictability of unit economics and the timing of breakeven. In regulated water projects with long sales cycles, margin swings complicate contract pricing and forecasting, increasing the chance that revenue growth will not translate into durable profits.