Persistent Net LossesA sustained negative net margin (-16.2%) shows the company does not yet generate platform-level profitability. Continued losses erode internal capital, force dependence on financing, and limit the firm’s ability to fund investments, making long-term scaling and sustained profitability more challenging.
Negative Equity And High LeverageNegative equity and elevated leverage indicate the balance sheet is structurally weak, increasing default and refinancing risk. This dynamic constrains strategic flexibility, raises cost of capital, and can limit ability to pursue M&A or absorb shocks until equity is restored or leverage reduced.
Weak Free Cash FlowNegative free cash flow and poor conversion of income to cash mean the company must rely on external funding to sustain operations and growth. Prolonged FCF weakness limits reinvestment capacity, increases financing costs, and pressures long-term viability unless cash generation improves.