The phrase uses a forest as a metaphor for ongoing trouble or challenges. The company's debts are lowering, but we’re not out of the woods with finances yet.
Pro Tip 2/3
Uncertain Outcome
It suggests recovery is in process, but success isn't guaranteed yet. He's responding to the treatment, but he's not out of the woods.
Pro Tip 3/3
Emotional Tone
Often conveys worry or concern for someone's situation. She's been brave through her illness, but she's not out of the woods.