Steep Revenue Decline (-53.6%)A 53.6% revenue contraction materially reduces scale, weakens bargaining power, and makes fixed-cost absorption difficult. Sustained top-line weakness undermines recovery prospects, strains margins and cash generation, and increases the burden on management to regain market traction.
Ongoing Operating LossesPersistent negative EBIT and net margins erode equity and limit retained earnings available for reinvestment. Continued losses raise financing needs, restrict strategic options, and make long-term competitiveness dependent on structural cost cuts or meaningful revenue restoration.
Negative Operating Cash FlowNegative operating cash flow shows the business isn't converting earnings into cash, pressuring liquidity and increasing reliance on external capital. Over a multi-month horizon this reduces flexibility to fund capex or weather downturns and raises refinancing risk.