Persistent Operating And Net LossesMulti-year, sizable operating and net losses represent a structural profitability challenge. Continued negative EBIT erodes retained earnings and limits reinvestment capacity, making sustainable recovery dependent on meaningful cost reductions or substantial revenue acceleration to convert top-line growth into lasting profits.
Consistently Negative Operating And Free Cash FlowChronic negative operating and free cash flow means the business consumes cash rather than funds itself. Over a 2–6 month horizon this elevates liquidity and financing risk, constrains investment in growth, and increases dependence on external capital, which can be costly or dilutive if losses persist.
Equity Volatility And Prior Negative EquityA swing to negative equity in 2024 reflects capital erosion from losses and creates a credibility and solvency concern. Such equity volatility can hinder access to unsecured financing, raise covenants or collateral needs, and blunt investor confidence, making durable recovery more difficult without clear profitability or recapitalization.