Negative Free Cash FlowPersistently negative free cash flow despite stronger operating cash flow indicates the business is still capital-hungry. Ongoing negative FCF raises structural funding risk as the company scales AI infrastructure, potentially requiring external financing or equity issuance to sustain growth investments.
Very Large Capex NeedsA multi-year capex program to service AI demand creates durable capital intensity. High ongoing investment amplifies execution and liquidity risk, and supply-chain constraints can delay revenue realization, compress returns on invested capital and prolong the period before free cash flow turns positive.
Gross Margin Pressure From AI CostsAI workloads drive higher variable IDC costs and sharp depreciation, exerting structural pressure on gross margins. Even with higher-value AI revenue, elevated per-unit infrastructure cost and upfront depreciation can compress long-term gross profit unless pricing or efficiency offsets scale benefits.