Negative EquityNegative shareholders' equity signals deep balance-sheet impairment, limiting access to traditional capital and increasing insolvency risk. Over months this constrains strategic options, may trigger covenant issues, and forces dilutive or costly financing solutions to stabilize operations.
Free Cash Flow CollapseA near-total collapse in free cash flow erodes the company's ability to self-fund growth, capex, or working capital needs. Persistently negative FCF forces reliance on external financing, increasing dilution or interest expense and constraining long-term investment and execution.
Sustained UnprofitabilityDeep negative margins reflect structural cost or pricing issues that are unlikely to correct without meaningful strategic change. Over the medium term this undermines cash generation, investor confidence, and the durability of the business model unless profitability is restored.