Revenue Collapse To ZeroA reported revenue decline to zero is a material structural red flag: it calls into question core demand, the sustainability of reported profits, and the business model. Restoring recurring revenue is critical for medium-term viability and credible planning.
Highly Volatile EBITLarge swings in EBIT reflect unstable operating performance and inconsistent margin capture. This volatility undermines forecasting, capital allocation and lender or investor confidence, increasing execution risk and the chance of profit reversals over coming quarters.
Inconsistent Free Cash FlowLumpy and declining free cash flow reduces the firm's capacity to consistently fund capex, dividends, or reinvestment from internal resources. Even with positive operating cash, persistent FCF variability elevates liquidity and operational risks over the medium term.