Deeply Negative Gross And Operating MarginsNegative gross margins indicate the core offering currently destroys value per sale, a structural issue that prevents scalable profitability. Without durable changes to pricing, cost structure, or product mix, losses will persist regardless of top-line growth.
Consistent Cash Burn And Negative Free Cash FlowOngoing annual negative operating and free cash flow creates structural reliance on external financing or equity raises. That pressure can dilute shareholders, constrain investment in growth initiatives, and elevate execution risk if funding access tightens.
Material Erosion Of Shareholder EquityA sharply reduced equity base reflects cumulative losses and leaves a smaller capital buffer against shocks. This weakens balance-sheet resilience, limits borrowing capacity, and raises the likelihood of dilutive financing or restructuring if negative performance continues.