Negative Cash GenerationOperating and free cash flow have been persistently negative through 2022–2025, including -29.0M in 2025 and -27.8M in 2024. This means the business is not self-financing, increasing reliance on external capital, heightening dilution or refinancing risk, and constraining reinvestment capacity.
Rising LeverageDebt has increased substantially over three years, lifting leverage as profitability remains negative. Higher debt-to-equity reduces financial flexibility, raises interest and refinancing pressures, and amplifies downside risk if cash generation does not improve or if external funding conditions tighten.
Compressed Gross MarginsGross margin decline despite revenue growth implies margin erosion from pricing, mix, or cost pressures. Compressed unit economics make it harder to convert higher revenue into profits; sustained margin weakness threatens the durability of any recovery and lengthens the path to positive operating cash flow.