Negative ProfitabilityDespite strong revenues and gross margins, persistent negative net margins show operating costs, SG&A, or other expenses are eroding profitability. Continued losses constrain retained earnings, limit ability to deliver returns to shareholders, and require sustained operational fixes to reach durable profitability.
Negative Returns On EquityA negative ROE means the company is destroying shareholder value despite equity capital availability. Over the medium term this signals ineffective capital allocation or unprofitable scaling, and unless ROE turns positive, the firm may struggle to justify further equity investment.
Revenue Concentration & Contract RiskHeavy reliance on operator transaction fees and government/private lottery contracts exposes revenue to contract renewals, regulatory shifts, and bidding cycles. Structural dependence on third parties limits predictability of cash flows and can compress margins if competitive or regulatory pressure increases.