Persistently Negative Free Cash FlowNegative free cash flow of sizeable magnitude limits the company's ability to self-fund growth, reduce debt, or pay dividends without external financing. Over several quarters this can force higher borrowing or equity raises, weakening long-term financial autonomy and strategic optionality.
Earnings Volatility And Past LossesA history that includes net losses as recently as 2022 highlights earnings volatility and execution risk. Even with recent improvements, the company may still be susceptible to demand swings or margin pressure, making cash flow and profit sustainability less certain over the medium term.
History Of Higher LeveragePrior periods of very high leverage indicate the balance sheet has been materially riskier in the recent past. This raises concerns about potential lingering covenant, refinancing, or structural financing constraints if profitability or cash generation weaken again.