Negative Cash FlowPersistent negative operating and free cash flow shows the company cannot internally fund operations or reinvest. Over months this erodes liquidity, increases reliance on external financing, and limits spending on R&D, marketing, and supply chain needed to regain competitiveness and scale.
Rising LeverageIncreasing debt-to-equity alongside declining shareholders' equity indicates rising leverage while profitability is negative. This elevates interest burdens, reduces financial flexibility, and heightens refinancing and solvency risk, constraining strategic options and investment capacity over the medium term.
Structural UnprofitabilityChronic negative gross, net, and operating margins point to structural unprofitability and operational inefficiencies. Without sustained margin improvement or a shift to higher-margin revenue, the firm will struggle to convert sales into lasting profits and cash, undermining long-term viability.