Persistent Negative Operating And Free Cash FlowConsistent negative operating and free cash flow, with FCF deterioration (~-512% TTM), is a structural weakness that forces reliance on external financing or equity dilution. Without sustained cash generation, investment, growth and solvency are constrained over the medium term.
Ongoing Net Losses And Low Gross MarginsDespite revenue gains, persistently low and declining gross margins limit the firm’s ability to absorb SG&A and scale profitably. Combined with recurring net losses, this structural margin pressure undermines durable earnings power and makes long-term self-funding of growth unlikely without margin recovery.
Regulatory And Distribution Execution RisksRegulatory uncertainty around hemp/HD9 products threatens a growing product line and could force reformulation or delisting, reducing addressable market. Coupled with distribution execution issues (e.g., failed Southeast Costco test), these structural hurdles can materially slow national scaling and revenue predictability.