Negative Cash FlowDeeply negative operating and free cash flows signal persistent cash burn and reliance on external funding. This constrains the firm's ability to scale manufacturing, sales, and regulatory activities, increases dilution risk, and elevates execution risk if cash generation doesn't improve within the next several quarters.
Compressed Gross MarginsSharply compressed gross margins undermine the economics of product sales and limit internal funding for SG&A and R&D. Even with revenue growth, margin pressure reduces the likelihood of sustainable profitability and forces difficult trade-offs between price competitiveness and long-term margin restoration.
Volatile Negative EarningsPersistent, volatile net losses point to an unstable operating model and execution risk. Unpredictable earnings make strategic planning and forecasting difficult, elevate the cost of capital, and may impede the company's ability to secure patient financing while it seeks to stabilize margins and cash generation.