Deep And Widening Net LossesPersistently large accounting losses and negative gross profit indicate the core business is not yet profitable and that unit economics are weak. Over the medium term this undermines reinvestment capacity, investor confidence, and the platform’s ability to fund growth without external capital.
Meaningful Leverage And Balance-sheet VolatilityHigh leverage combined with historical equity volatility raises refinancing and solvency risk if cash flow weakens. Structural balance-sheet fragility limits flexibility to pursue opportunities, increases borrowing costs, and elevates the risk that future losses trigger covenant or capital-raising stress.
Cash Flow Coverage Of Debt Remains LimitedAlthough recent free cash flow is positive, it currently covers only a small share of debt, leaving limited cushion for shocks or strategic investments. If cash generation reverts, the company may need external financing, which is constrained by weak profitability and elevated leverage.