Sharp Revenue DeclineA near-39% reported revenue contraction signals weakening customer acquisition or retention, reducing scale benefits. Over 2-6 months this undermines growth runway, limits ability to leverage high gross margins, and increases dependence on external funding to sustain operations.
Negative Operating & Free Cash FlowPersistent negative operating and free cash flow indicate the business is cash-burning, limiting internal funding for R&D and sales. This raises liquidity risk and the likelihood of future equity or debt raises, which can dilute shareholders or constrain strategic actions over the medium term.
Ongoing Profitability ShortfallContinuous negative EBIT and net margins show the company hasn't translated high gross margins into operating profitability. Structural cost base or insufficient scale may be the cause, posing a medium-term risk to sustainable earnings improvement without meaningful margin expansion or revenue recovery.