Persistent Negative Operating And Free Cash FlowConsistent negative operating and free cash flow shows earnings have not translated into sustainable cash generation. This structural cash shortfall forces reliance on financing, asset sales, or equity raises, increasing dilution or refinancing risk and constraining long-term investment capacity.
Highly Volatile Earnings And One-off SwingsA history of sharp earnings swings and occasional negative revenue reduces predictability of future results. Structural volatility impairs planning, complicates capital allocation, and raises the probability that recent profits are temporary rather than the start of sustained improvement.
Past Capital Instability / Prior Negative EquityPrior episodes of negative equity and large balance sheet shifts indicate historical solvency stress and a fragile capital base. Even with recent strengthening, this legacy increases the chance management will need to raise capital again, diluting shareholders or altering strategy.