Negative Free Cash FlowPersistent negative free cash flow driven by heavy capex can erode liquidity and requires careful capital allocation. Over several quarters this may constrain discretionary spending, force external financing, or delay returns to shareholders if capex fails to generate commensurate revenue gains.
Margins Need Further ImprovementAlthough margins have improved, suboptimal EBIT/EBITDA margins imply limited operating leverage and profitability headroom. Without further margin expansion, the company may struggle to sustainably fund growth, absorb cost shocks, or translate revenue gains into durable net income.
Small Organizational ScaleA small headcount can limit capacity to scale sales, R&D, and customer support concurrently. Over the medium term this may slow product rollouts, constrain market coverage, and increase execution risk compared with larger competitors until the company builds organizational scale.