Persistent UnprofitabilityOngoing negative gross and net margins show the company is not covering costs at the operational level. Structural unprofitability erodes equity, limits reinvestment capacity, and means growth can be value destructive unless there is a durable turnaround in margins or business mix.
Negative Operating And Free Cash FlowsConsistent negative operating and free cash flows reduce the firm's ability to maintain properties, complete developments or service liabilities from operations. This forces reliance on external financing or asset disposals, increasing execution risk and weakening long-term financial resilience.
Negative Return On EquityA negative ROE signals the company's assets and capital base are producing losses rather than value. Over months this undermines investor confidence and makes raising capital harder, constraining growth and potentially forcing dilutive financing or asset sales to shore up the balance sheet.