Inconsistent Revenue GrowthIrregular top-line performance and periods of material decline weaken predictability of future cash flows and complicate planning. For a subscription-driven e-commerce model, inconsistent growth undermines scale economics and can increase per-customer acquisition costs and margin pressure over the coming quarters.
Weak And Variable Cash GenerationDeclining and inconsistent operating and free cash flow reduces liquidity buffers and constrains working capital for inventory and promotions. Variable cash generation raises the risk of needing external financing or cutting investment during slow periods, weakening operational resilience.
Volatile Net ProfitabilityWhile gross margins are relatively stable, swings in net margin point to sensitivity to operating costs, promotions or one-off items. Such bottom-line volatility impairs long-term earnings visibility, complicates capital allocation and may reduce the firm's ability to sustain investments consistently.