Stable Gross Profit MarginA relatively stable gross margin indicates the company’s core unit economics remain intact, supporting scalability if revenue recovers. Over 2-6 months this stability aids planning for pricing, cost control, and targeted margin improvement initiatives without being driven by one-off items.
Predictable Cash ConversionA consistent free cash flow to net income ratio implies cash generation tracks reported losses, reducing volatility in cash forecasting. That predictability supports durable liquidity planning, creditor negotiations, and operational decisions even while cash flows are negative.
Very Lean Operating StructureAn extremely small headcount points to a lean cost base and low fixed payroll overhead, which can materially extend runway and allow strategic shifts with minimal incremental staffing expense. This structural low-burn profile aids survival and optionality over months.