Persistent UnprofitabilityOngoing negative EBIT and net losses undermine long-term self-sufficiency, forcing reliance on financing or dilution to sustain operations. Persistent unprofitability also constrains reinvestment in content and product development, weakening competitive position if not reversed.
High Leverage And Declining EquitySignificant leverage and falling equity reduce financial flexibility and increase insolvency risk during stress. Higher debt burdens raise interest and refinancing risks, limiting the company's ability to invest in content or technology and making it more vulnerable to sector downturns.
Volatile, Negative Free Cash FlowNegative and volatile free cash flow erodes liquidity and forces dependence on external capital to fund operations and content spending. Over months, this can lead to dilution, higher financing costs, or curtailed investment, all of which impede scalable growth in a content-driven business.