Negative Profitability And MarginsConsistent negative operating and net margins erode the company's ability to self-fund operations and reinvest. Persistent losses indicate structural profitability issues—pricing, cost structure, or product mix—that will pressure liquidity and strategic options across a multi-month horizon.
Negative Equity And High LeverageNegative equity and elevated debt levels create lasting solvency and refinancing risks. High leverage limits financial flexibility, raises borrowing costs, and reduces ability to fund capex or absorb shocks, making operational recovery contingent on either deleveraging or external capital.
Consistently Negative Operating Cash FlowOngoing negative operating and free cash flow indicates the company cannot generate cash from core operations. Over several months this forces dependence on external financing, restricts working capital and capex, and magnifies risk if credit markets tighten or lenders demand restructuring.