Persistent UnprofitabilityNegative net profit margins mean Somnomed has not yet converted revenue growth into net earnings. Over the medium term this pressures retained capital, requires continued cash generation to fund operations, and delays returns to shareholders until operating margins improve.
Negative Return On EquityA negative ROE signals the company’s deployed capital is not creating shareholder value. Structurally this can limit reinvestment capacity and make capital allocation harder, risking dilution or constrained growth unless profitability and asset efficiency improve materially.
Dependence On Clinician Adoption And ReimbursementRevenue depends on dental/sleep clinician adoption, referral/diagnosis rates, and payer reimbursement. These are structural, slow-moving factors; adverse shifts in referral patterns, clinician uptake or reimbursement policy can materially constrain demand and revenue visibility over months.