Persistent Negative ProfitabilityNegative gross profit across multiple years indicates the core offering is unprofitable at current pricing/costs. Sustained unit-level losses threaten margin recovery, requiring structural cost cuts or pricing power gains to reach sustainable profitability over the medium term.
Rising Leverage; Debt Exceeds EquityMaterial increase in debt leading to debt > equity raises refinancing and interest-service risk. Elevated leverage reduces strategic flexibility, increases covenant and liquidity pressure if cash generation stalls, and heightens the chance of forced funding actions within months.
Consistent Negative Free Cash FlowPersistent materially negative free cash flow signals ongoing cash burn that necessitates external financing or equity dilution. Continued negative FCF constrains capex for capacity expansion, undermines ability to meet rising AI demand and increases funding risk over the medium term.