Negative Operating And Free Cash FlowConsistent negative operating and free cash flow erodes internal funding for operations and growth, forcing reliance on external financing. Over months this raises liquidity risk, constrains reinvestment, and makes the company vulnerable to tightening credit or higher borrowing costs.
Persistently Negative EBITNegative EBIT across periods signals core operations are loss-making before non-operating items. This is a structural earnings-quality issue: without operational improvement, reliance on one-time items or financing to report net profits is unsustainable and compresses long-term profitability.
Rising Leverage Reduces FlexibilityA meaningful step-up in debt-to-equity over the last year increases fixed obligations and reduces balance sheet flexibility. If cash generation remains weak, higher leverage elevates refinancing and interest-rate risk, limiting the company's ability to invest or absorb operational setbacks.