Very High LeverageDebt-to-equity around 5.5x signals materially elevated leverage that erodes financial flexibility. High interest and principal obligations constrain reinvestment, raise refinancing risk, and increase default probability if cash generation does not improve within the next several months.
Negative Operating Cash FlowSustained negative operating and free cash flows indicate the business is consuming cash to run operations. This pattern likely necessitates external funding or asset sales to remain solvent, heightening financing and execution risk across the 2–6 month horizon.
Large Losses & Thin MarginsA deep FY2025 net loss and sub-3% gross margin point to weak pricing power or elevated costs. Such structural profitability challenges erode equity and limit the company's ability to self-fund improvements, making a durable recovery dependent on material margin or cost restructuring.