Historically Negative EBIT And EBITDA MarginsPersistent negative operating margins undermine ability to convert revenue into sustainable profits. Without sustained margin recovery, the business will struggle to fund growth internally and demonstrate durable economics to investors, raising medium‑term viability concerns.
Inconsistent Free Cash FlowVolatile free cash flow limits predictable reinvestment in product, sales, and regulatory compliance. Even with improved operating cash flow, inconsistent FCF increases likelihood of needing external capital or cutting strategic spends, hindering steady long‑term execution.
Weak Return On Equity From Volatile Net IncomeA weak ROE driven by earnings volatility signals inefficient capital use and uncertain profit generation. Over the medium term this can erode investor confidence and limit access to low‑cost capital, constraining expansion unless operational consistency improves.