Elevated And Rising LeverageA high and increasing debt-to-equity ratio raises refinancing and interest-rate risk, constraining financial flexibility. With ongoing losses and modest operating cash flow coverage of debt, elevated leverage materially heightens risk of funding stress or forced deleveraging under adverse conditions.
Sharply Compressed Gross MarginA collapse in gross margin is a structural concern: it leaves little room to cover SG&A and fixed costs, making sustainable profitability harder. Unless product mix or pricing power improves, low gross margins limit upside from revenue growth and magnify downside in slower periods.
Company Remains Loss-makingPersisting net losses and negative returns on equity (~-10% in 2025) undermine long-term resilience. Continued unprofitability can restrict access to capital, force dilution or higher-cost financing, and delay reinvestment, making recovery contingent on sustained operational improvement.