Persistent Net Losses And Negative MarginsSustained losses erode retained capital and restrict reinvestment. Over months, this undermines ability to fund growth, hire or retain talent, and invest in efficiency programs. Continued negative profitability increases reliance on external capital and raises long-term viability risk.
Negative Operating And Free Cash FlowsNegative operating and free cash flows indicate the business is not self-funding its operations. Persisting cash deficits force external financing, constrain capex and working capital, and limit the firm's ability to respond to market opportunities or absorb commodity-cycle shocks over the next several months.
High Revenue Volatility And Recent DeclineLarge swings in revenue complicate planning and reduce predictability of margins. Volatility can leave fixed costs under-absorbed, weaken supplier/customer relationships, and hinder a steady path to profitable scale; this structural instability raises execution risk for any recovery plan.