Sharp Rise In LeverageA large increase in debt to ~1.62B and debt/equity ~6.3x materially weakens the balance sheet. Elevated leverage raises refinancing and covenant risk, increases interest burden, and constrains strategic flexibility, especially hazardous while the company remains loss-making and pursuing growth initiatives.
Negative Free Cash FlowPersistent negative free cash flow (~-38.3M in 2025) means the company cannot consistently self-fund operations and investments. Over the medium term this requires external financing, which is more costly and risky given the higher leverage and ongoing losses, limiting durable financial resilience.
Widening Net LossesDespite revenue growth, a ~-33% net margin and deteriorating profitability indicate the company has not converted scale into earnings. Continued losses erode equity, complicate debt servicing, and prolong the path to sustainable profitability unless management executes material cost or mix improvements.