Deep And Persistent Net LossesExtremely negative net margins signal the business is losing value at scale, eroding equity and limiting retained earnings. Persistent large losses constrain reinvestment, impede ability to self-fund growth, and increase dependence on external capital, creating lasting pressure on strategic options.
Negative Operating And Free Cash FlowConsistent negative operating and free cash flows indicate the company cannot convert revenue into sustainable cash, forcing reliance on financing. This weak cash generation elevates dilution and refinancing risk, and limits capacity to invest in operations or respond to industry shifts without external support.
Balance Sheet Fragility And Past Negative EquityA history of negative equity and reliance on debt reflect structural funding weaknesses and limited capital buffers. Even with some leverage improvement, prior capital deficits raise long-term solvency concerns and reduce resilience to revenue shocks or cost inflation, constraining strategic flexibility.