Persistent LossesMeaningfully negative net margins (~-22%) indicate the company has not yet converted revenue growth into sustainable profits. Continued losses erode equity, limit reinvestment capacity and increase reliance on external financing, creating a structural hurdle to long-term financial health.
Weak Cash GenerationConsistently negative OCF and FCF mean the business consumes cash to operate, forcing dependence on external funding or balance sheet support. Over several months, weak cash generation makes it harder to invest, meet obligations and withstand revenue volatility without diluting shareholders or raising debt.
High LeverageA sharp rise to ~4.7x debt/equity materially increases financial risk. High leverage raises interest and refinancing pressures, reduces flexibility to fund growth, and magnifies solvency risk given continued losses and weak cash flow, threatening long-term operational resilience.