Severe Free Cash Flow DeteriorationA near-total collapse in free cash flow undermines liquidity and the company's ability to fund operations, invest in the network, or service debt without external financing. This structural cash-generation weakness raises sustained refinancing and solvency concerns absent a clear recovery plan.
High LeverageA debt-to-equity ratio above 2x indicates significant reliance on debt financing. With weak cash generation and negative net income, high leverage limits strategic flexibility, increases interest burden, and elevates default risk through multiple quarters unless deleveraging occurs.
Declining Revenue And Compressed MarginsFalling revenue and sharply compressed gross margin signal structural pressures on unit economics and pricing power. Combined with a negative net margin, this points to persistent profitability challenges that threaten long-term sustainability unless revenue drivers or cost structure are materially improved.