Persistent UnprofitabilityWidening net losses signal the company has not yet translated revenue scale into consistent profits. Persistent losses erode equity over time, limit internally generated funding, and increase reliance on external capital, raising execution and dilution risk if profitability is not achieved.
Weak And Negative Cash GenerationRecurrent negative operating and free cash flow indicate the business consumes cash to sustain growth, increasing dependency on financing. This structural cash burn elevates funding risk, can constrain reinvestment choices, and makes the company vulnerable to tighter capital markets.
Rising Debt LoadMaterially higher debt alongside ongoing losses raises refinancing and interest-cost risk. Increased leverage can limit strategic flexibility, impose fixed cash interest obligations, and amplify downside if revenue growth slows before margins and cash flow strengthen.