Inconsistent Free Cash FlowIntermittent free cash flow limits the firm's ability to consistently fund capex, marketing, and potential dividends or debt reduction. Over 2-6 months, cash variability can force trade-offs between growth investment and liquidity preservation, constraining strategic flexibility.
History Of Revenue VolatilityPrior volatility and instances of net losses suggest the recovery may face execution risk. If demand or operational effectiveness slips, revenues and profits could revert, complicating multi-quarter planning, harming stakeholder confidence, and making long-term reinvestment less predictable.
Equity Level FluctuationsVariability in equity indicates past capital structure adjustments or losses that can weaken financial cushions. Over the medium term this raises the chance of future dilutive financing or constrained borrowing capacity if growth requires capital, reducing strategic optionality.