Very High LeverageDebt-to-equity near 12x reflects materially eroded equity and large outstanding debt; this elevates refinancing, interest burden and dilution risks. High leverage constrains strategic flexibility and magnifies the consequences of any operational setbacks over the medium term.
Persistently Negative ProfitabilityDespite EBITDA improvement, negative gross profit and continuing net losses indicate structural margin pressure or cost inefficiencies. Without sustained positive gross margins, the company may struggle to convert operational gains into lasting profitability or to self-fund growth.
Weak And Uneven Free Cash FlowNear-zero or negative free cash flow limits capacity for capex, debt reduction or building liquidity buffers. Even with positive operating cash flow in 2025, inconsistent FCF leaves the firm vulnerable to funding gaps and heightens reliance on external financing amid high leverage.