Ongoing Operating LossesContinued operating losses mean the company has yet to convert sales into sustainable earnings. Persistent unprofitability undermines return-on-capital expectations, limits retained-earnings growth, and makes long-term business viability reliant on restoring margins or external funding.
Rising LeverageA near-doubling of debt-to-equity over one year reduces financial flexibility and raises refinancing and interest-rate exposure. Higher leverage constrains strategic options, increases fixed obligations, and amplifies downside risk if earnings fail to recover consistently.
Volatile And Weakening Free Cash Flow TrendDespite the 2025 improvement, a large year-over-year FCF decline and a history of volatility limit confidence in cash durability. Unreliable cash generation hampers capital expenditure planning, dividend sustainability and debt repayment, exposing the turnaround to execution risk.