Negative Equity / Weak Balance SheetDeeply negative equity signals an impaired capital structure and limited financial flexibility. Over 2–6 months this raises refinancing and dilution risk, constrains ability to pursue M&A or product investment, and increases dependence on external funding to sustain operations.
Ongoing Net LossesPersistent operating losses and a sizeable negative net margin mean the firm is not yet cash-generative at scale. Without consistent path to positive EBITDA, the company will likely need continued financing, which can dilute shareholders and constrain long-term strategic options.
Inconsistent Cash GenerationReversion to negative operating and free cash flow demonstrates cash generation volatility and reliance on external capital. Inconsistent free cash flow undermines self-funding, increases refinancing risk, and can limit sustained investment in growth initiatives over the medium term.