Negative Gross Profit And Heavy LossesPersistently negative gross margins and very large net losses indicate the core business is not yet profitable at scale. Without meaningful margin improvement or cost structure changes, losses can persist and prevent generation of sustainable operating profits even as revenue grows.
Deep Operating Cash BurnContinued negative operating and free cash flows mean the company depends on external financing for working capital and growth. Persistent cash burn limits the firm’s ability to self-fund product development, sales expansion, or absorb shocks without dilutive or costly capital raises.
Very Negative Returns On Equity; Capital Erosion RiskSustained negative ROE signals that equity is being consumed by losses; over multiple quarters this erodes the capital base, increasing the likelihood of future dilution or constrained strategic options. That structural risk can impair long-term competitiveness if unreversed.