Persistent Unprofitability And Negative MarginsNegative net, EBIT, and EBITDA margins indicate entrenched profitability issues. Persistent losses erode retained capital, limit reinvestment, and increase pressure to secure external funding. Without structural margin improvement, long-term viability and investor confidence remain impaired.
Weak And Negative Operating Cash GenerationRepeated negative operating and free cash flow means the business does not reliably generate surplus cash from core operations. This structural cash shortfall forces dependence on external financing, restricts capex and marketing investment, and raises solvency and execution risk.
Declining Equity And Moderate LeverageModerate leverage combined with falling shareholders' equity reduces financial resilience. Erosion of equity narrows buffers against downturns, limits borrowing capacity on favorable terms, and heightens the risk that funding constraints will impede recovery while losses persist.