Even if a company is growing and has positive EBITDA margins, it is possible that the expenses beneath EBITDA are large enough to counteract any positive EBITDA, ultimately resulting in a negative net income.
Expense items beneath EBITDA include: depreciation and amortization, interest, and tax. These expense items, when combined with EBITDA, could be enough to result in a negative income. There could also be one-time expense items like litigation expenses, which are typically not included in EBITDA but may affect net income.