Negative Equity / High LeverageNegative stockholders’ equity signals structural balance‑sheet weakness and elevated leverage. Over the medium term this limits financing options, increases default or covenant risk, and raises the likelihood of dilutive capital raises or restructuring, impairing strategic flexibility.
Persistent Negative ProfitabilitySustained negative operating and EBITDA margins indicate the company fails to convert revenue into operating profits. Absent durable improvements in pricing, product mix, or cost structure, this undermines long‑term free cash generation and makes sustainable self‑funding of growth unlikely.
Negative Operating & Free Cash FlowOngoing negative operating and free cash flow create structural funding needs and dependency on external capital. Over months this constrains reinvestment, can force financing at adverse terms, and raises execution risk for product development and go‑to‑market initiatives.