Weak ProfitabilityNegative net and EBIT margins show the business is not yet converting improved revenue and gross margins into consistent operating profits. Persistent operating losses weaken retained earnings, constrain reinvestment from internal cash, and require margin expansion or higher scale to reach sustainable profitability.
Negative Free Cash FlowNegative free cash flow indicates that after investment and working-capital needs the company consumes cash, forcing reliance on financing or reserves to fund growth. Over time this constrains strategic flexibility, raises financing needs, and increases execution risk if cash conversion does not improve.
Poor Returns And Earnings VolatilityA materially negative ROE and historically volatile results (profitable in 2021, losses since) imply the company struggles to reliably convert capital into returns. This undermines reinvestment effectiveness, raises the bar for operational fixes, and makes long-term forecasting and investor confidence more difficult to sustain.