Persistent UnprofitabilityOngoing operating losses and weak gross margins indicate the company has not achieved sustainable unit economics. Over months this threatens equity value and requires either material margin improvement or continued capital raises to avoid dilution and preserve long-term viability.
Negative And Worsening Cash FlowWorsening free cash flow and negative operating cash conversion reduce internal funding for growth and increase reliance on external financing. Structurally, persistent cash burn constrains strategic options, risks dilution, and limits investment in product and sales until operating cash improves.
Margin & Operational Efficiency RiskRevenue scale without margin improvement points to structural inefficiencies—pricing, cost base, or high customer acquisition costs. Without sustained margin expansion, top-line growth may not translate to lasting profitability, challenging long-term returns and capital efficiency.