High LeverageA debt-to-equity ratio near 4x signals significant financial risk and constrained flexibility. High leverage increases interest and refinancing pressures, reduces ability to invest in growth, and elevates default risk during downturns, making operational recovery harder without deleveraging or fresh capital.
Weak Cash GenerationPersistent negative operating and free cash flows mean the company cannot fund core operations or reinvest organically. A steep FCF decline constrains working capital, forces reliance on external financing, and undermines sustainable growth prospects unless cash conversion reverses materially.
Declining Revenue And Persistent LossesOngoing revenue contraction and negative margins point to structural competitiveness or execution issues. Continued losses erode equity and limit reinvestment, making it difficult to achieve scale and margin recovery; sustained profitability turnaround is required for long-term viability.