Negative Cash FlowPersistent negative operating and free cash flows undermine internal funding of operations and capital needs. Over months, this increases dependence on external financing or asset sales, raising execution risk for growth plans despite low reported leverage on the balance sheet.
Profit Margin CollapseA sharp fall in net profit margin from ~20.8% to ~3.7% indicates the company is retaining far less profit per revenue dollar. This compression limits retained earnings for reinvestment, stresses return generation for shareholders, and may signal structural cost or pricing pressure.
Low Operating MarginsRelatively low EBIT and EBITDA margins point to operational inefficiencies or high fixed costs relative to revenue. Over time this reduces the firm’s ability to absorb cost shocks or scale profitably, slowing path to consistent cash generation and lowering resilience.