Deep And Persistent Operating LossesExtremely negative operating and net margins show the company is far from operating profitably; persistent losses erode capital and make long-term viability contingent on sustained margin improvement or continual external funding, limiting strategic flexibility over months to years.
Negative Operating And Free Cash FlowHigh cash burn means the business consumes cash as it grows, necessitating repeated financing or dilution. Even with revenue growth, persistent negative OCF/FCF constrains reinvestment ability, increases refinancing risk, and forces trade-offs between growth initiatives and liquidity preservation.
Weak Returns And Historical Equity VolatilityPrior periods of negative equity and weak ROE reflect capital erosion and volatility in the balance sheet, increasing the probability of future equity raises. This structural weakness can dilute shareholders, limit borrowing capacity, and undermine long-term investor confidence if profitability isn't achieved.