Lack Of ProfitabilityA near‑breakeven gross margin and persistent operating and net losses indicate the core business is not yet profitable. Without sustained margin improvement, the company will struggle to self-fund growth, generate attractive returns, or build persistent ROE, increasing long‑term financing and execution risk.
Earnings VolatilityWide swings between profitable and loss-making years reduce the predictability of earnings and cash flow. This volatility complicates planning, undermines lender and investor confidence, and raises the likelihood of reactive cost cutting or capital raises that can impair long-term strategic execution.
Leverage InstabilityMaterial swings in leverage, including prior episodes of very high debt, amplify downside when revenues falter and increase interest burdens. Elevated and unstable leverage constrains capital allocation, limits strategic optionality, and raises refinancing risk during adverse cycles, weighing on durable financial stability.