Persistent Net LossesContinuous net losses over multiple years erode retained earnings and constrain internal capital for growth or cushioning cyclical shocks. This chronic unprofitability undermines return generation, limits strategic optionality, and raises the bar for management to deliver sustained profitability.
Thin Gross Margins And Negative Operating ProfitVery slim gross margins leave little room to absorb input cost inflation or pricing pressure, while recurring negative EBIT signals core profitability problems. Structural margin weakness increases vulnerability to competitive and macro swings, making durable profit recovery more challenging.
Sharp Cash Flow Deterioration In 2025The sudden drop from prior positive cash conversion to near-zero OCF and negative FCF weakens liquidity and may force external funding or cutbacks. This volatility raises execution risk, curtails reinvestment capacity, and could reverse recent balance-sheet gains if sustained.