Still Loss-MakingDespite EBITDA gains, negative EBIT and continued net losses mean depreciation, interest, or other operating items still erode bottom-line profits. That persistent unprofitability limits retained earnings, hampers balance-sheet strengthening, and prolongs dependence on external financing until full operating profit is achieved.
Rising LeverageSharp debt increases and a debt-to-equity near 1.3 raise fixed obligations and refinancing risk. Higher leverage reduces financial flexibility, strains interest and principal servicing needs, and makes the company more vulnerable to cash flow volatility or adverse rate moves, limiting strategic optionality.
Low Gross Margin & Revenue VolatilityA thin gross margin constrains pricing power and leaves little room to absorb cost inflation or invest in sales/tech without hurting profits. Coupled with revenue inconsistency and periodic declines, this pattern undermines predictability of cash flow and makes sustaining net profitability more challenging over the medium term.