UnprofitabilityPersistent negative EBIT and net income signal structural profitability challenges. Continued operating losses require external funding, risk shareholder dilution, and constrain strategic choices. Achieving sustained operating profitability is essential for long-term financial independence.
Operating Cash FlowConsistently negative operating cash flow forces reliance on financing and non-operating sources to fund growth. This reduces financial flexibility, increases refinancing risk in tighter markets, and limits the company's ability to self-fund R&D, deployments, or to offer generous customer payment terms.
High Operating ExpensesElevated operating expenses are eroding the benefits of healthy gross margins and delaying the path to positive free cash flow. Without meaningful operating leverage via revenue scale or cost control, sustained profitability and the capacity to reinvest in product and sales will remain constrained.