Steep Revenue DeclineA large year-over-year revenue contraction materially reduces economies of scale and pricing leverage. Persistently lower top-line volume undermines investment returns on proprietary platforms, strains customer relationships, and increases reliance on non-operating funding sources.
Persistent Operating Losses And Negative MarginsOngoing negative EBIT and net margins show core operations do not cover operating expenses. Over the medium term this limits reinvestment capacity, risks dilution if capital is raised, and requires either sustained margin improvement or external funding to achieve profitability.
Negative Operating And Free Cash FlowConsistent negative operating and free cash flow erodes cash reserves and forces reliance on financing or equity raises. This constrains the company’s ability to fund commercialization, clinical validation, or scaling efforts, posing a structural liquidity risk in coming months.