Multi-year Net LossesSustained losses across multiple years have eroded equity and produced deeply negative returns on capital. That chronic unprofitability undermines long-term viability, makes capital raising harder, and forces reliance on external funding unless structural profitability is restored.
Severely Compressed Gross MarginsA collapse in gross margin signals structural pricing pressure or adverse revenue mix that revenue growth alone won't fix. With margins so thin, the firm lacks buffer to cover operating costs, making path to sustainable profits contingent on reversing underlying product pricing or cost drivers.
Chronic Negative Cash FlowConsistent operating and free cash flow deficits force dependence on external financing and constrain reinvestment. Persistent cash burn heightens liquidity and execution risk, reducing runway for strategic initiatives and increasing likelihood of dilution or asset sales to sustain operations.