Large Net LossesDeep negative margins indicate core operations are not yet profitable and constrain reinvestment. Persistent heavy losses can force dilution or cutbacks, and create uncertainty about achieving positive operating leverage within a 2–6 month horizon without structural business changes.
Negative Free Cash Flow / Cash BurnSubstantial negative free cash flow signals ongoing cash burn that will require external funding or draw on reserves. Over a multi-month horizon this limits strategic optionality, increases financing risk, and pressures management to prioritize liquidity over long-term investments.
Negative Return On EquityNegative ROE shows shareholder capital is not generating returns, reflecting structural profitability shortfalls. Without a clear turnaround, poor capital efficiency undermines long-term investor returns and raises questions about management's ability to allocate equity productively.