Low LeverageZero reported debt meaningfully lowers fixed financing costs and reduces near-term solvency pressure. Low leverage gives management structural flexibility to raise capital or sustain operations during a multi-quarter turnaround without heavy interest burdens, aiding resilience.
Solid Gross MarginsSustained gross margins around the mid-50s percent indicate strong unit economics at the revenue line. If top-line stabilizes, these margins provide the structural basis to cover operating expenses and deliver operating leverage that can restore profitability over several quarters.
Prior Cash-Generation Track RecordA history of strong operating cash flow in prior years demonstrates the business can convert revenue into cash under favorable conditions. This track record supports the plausibility of a recovery and gives management operational precedent to rebuild cash conversion.