Thin Gross MarginPersistently thin gross margins (~5.9%) and an overall net loss profile mean the business struggles to earn adequate returns on sales. Over months this constrains capacity to invest in the dealer network, pricing flexibility, and the ability to convert revenue gains into sustainable profitability.
Rising LeverageLeverage increasing to ~1.35x elevates financial risk, reducing flexibility for capex or inventory funding and raising refinancing pressure. With ongoing losses, higher debt magnifies solvency and interest coverage risks, a structural constraint on strategic options over the coming months.
Negative Free Cash FlowWorsening negative free cash flow (~-309.6m) signals the company still requires external funding to support investments and working capital. Absent sustainable FCF recovery, management must rely on debt or equity, limiting ability to self-fund growth or de-leverage and raising long-term financing risk.