Negative Operating Cash FlowPersistent negative operating and free cash flows create a structural liquidity shortfall, forcing reliance on external funding. Over months this constrains capex, working-capital efficiency and margin-improvement programs, raising refinancing and operational continuity risks if cash generation doesn't improve.
Rising LeverageIncreasing debt relative to equity raises long-term interest burdens and reduces financial flexibility. Elevated leverage limits the company's ability to fund growth or absorb shocks, amplifying downside risk if margins stay depressed or if interest costs rise over the coming months.
Persistent LossesSustained negative EBIT and net income despite revenue gains indicate structural margin pressure or operational inefficiencies. Without clear, lasting improvements to cost structure or product mix, profitability is unlikely to normalize, compromising reinvestment capacity and long-term viability.