Negative Operating Cash FlowMulti-year negative operating cash flow is a structural risk: it erodes liquidity and forces dependence on financing or asset sales. Even with modest improvement, sustained negative OCF limits the company's ability to self-fund capex, inventory, or marketing needed to sustain growth.
Persistent Net LossesOngoing net losses and negative net margins prevent retention of earnings and depress return on equity. Over the medium term this constrains reinvestment, weakens creditworthiness, and raises the bar for management to deliver structural profit improvement to restore shareholder value and solvency confidence.
Gross Margin VolatilityVolatile gross margins point to inconsistent pricing power or cost control versus peers. Structural margin swings make forecasting and investment planning difficult, and raise the risk that margin improvements are cyclical rather than permanent unless the company secures stable supply, pricing, or product mix advantages.