Persistent Cash BurnRepeated negative operating and free cash flow creates a lasting financing overhang: the business cannot self-fund growth, raising the likelihood of external capital needs, dilution or constrained investment in sales and R&D, which can slow scaling and weaken competitiveness.
Ongoing Net Losses And Weak MarginsSustained net losses and negative margins undermine the firm's ability to convert higher revenue into profits. Without margin recovery, profitability remains elusive, pressuring return metrics and limiting resources to invest in client acquisition or higher-margin offerings over the medium term.
Negative ROE And Small Equity CushionA deeply negative ROE and modest equity base indicate persistent value dilution risk. Continued losses against a small equity cushion could force dilutive fundraising or limit strategic flexibility, constraining long-term resilience and increasing shareholder dilution risk if performance does not improve.