High LeverageA D/E of 2.23 represents materially higher leverage, raising refinancing and interest burden risks. Elevated debt limits financial flexibility for capex or price competition during ramp-up phases and increases vulnerability to demand shocks or margin pressure.
Negative Free Cash FlowNegative free cash flow and an OCF-to-net-income ratio of 0.26 show weak cash conversion, forcing reliance on external financing to fund expansion. Over months, persistent negative FCF can constrain capex, debt servicing, and strategic investments.
Margin Compression And Rising OpExA 219.9% jump in operating expenses alongside declining gross margins signals structural profitability pressure. Higher SG&A and ramp-related costs may persist while scaling, delaying sustainable margin recovery and reducing free cash generation over the medium term.