Positive Free Cash FlowConsistent positive free cash flow, even if modest, indicates the business can fund operations and some investment from internal cash. Over 2–6 months this reduces immediate financing needs, supports contract delivery, and provides runway to stabilize revenue or shore up the balance sheet without new equity issuance.
Recurring, Long-term ContractsA business model built on long-term government and enterprise contracts creates revenue visibility and higher customer retention. This structural demand and recurring billing reduce volatility, raise lifetime customer value, and enable predictable cash flow and planning across multiple quarters.
Stable Gross MarginsMid-30% gross margins show the core product/service has sustainable unit economics. If revenue stabilizes, those margins can drive operating leverage, improving EBITDA and cash generation over time and supporting reinvestment in product and sales to regain growth.