Negative EquityNegative shareholders' equity indicates liabilities exceed assets, elevating solvency and covenant risks. Over months this undermines capital-market access, limits strategic flexibility, and increases the likelihood that the company must pursue dilutive equity, asset sales, or costly refinancing.
Persistent GAAP LossesLarge GAAP losses and negative operating margins erode retained earnings and limit ability to self-fund growth. Even with adjusted EBITDA improvements, continued negative profitability threatens long-term dividend sustainability and constrains reinvestment without structural margin recovery.
Declining Free Cash FlowDeclining free cash flow reduces internal funding for capex and debt reduction, increasing reliance on external financing or asset monetizations. Coupled with negative equity, weaker FCF materially constrains balance sheet repair and long-term operational investments.