Negative EquityShareholders' equity turning negative signals cumulative losses have eroded capital and represents a structural balance-sheet weakness. Persistent negative equity can impede access to traditional financing, raise creditor and covenant risks, and constrain strategic options over months.
Weak MarginsVery low gross margin and deeply negative operating margins indicate weak unit economics or pricing pressure. Such structural margin shortfalls make revenue growth ineffective at producing profits without sustained cost reductions or improved pricing, threatening long-term earnings sustainability.
Negative Cash GenerationConsecutive years of negative operating and free cash flow reflect ongoing cash consumption and an operational cash deficit. Unless cash generation reverses, the company will need external funding, increasing dilution or financing risk and limiting reinvestment or growth options over the medium term.