Persistent Net LossesRecurring operating and EBITDA losses undermine long-term shareholder returns and erode equity if sustained. Over several months this limits reinvestment capacity, hampers ability to build scale profitably, and increases reliance on external funding to sustain operations.
Operating Cash-Flow DeficitLack of positive operating and free cash flow creates structural liquidity risk and forces dependence on financing for growth or working capital. Over a multi-month horizon this constrains capital allocation, raises refinancing risk, and limits ability to fund strategic initiatives internally.
Negative Return On EquityA negative ROE signals the business is not generating returns on shareholder capital, diminishing long-term investor value. Persisting negative ROE over months can pressure management to change strategy, pursue dilutive financing, or restructure operations to restore capital efficiency.