Negative Equity And Rising LeverageNegative equity combined with a material increase in debt weakens the capital structure and reduces financial flexibility. This elevated leverage limits ability to fund operations or invest organically, and makes future financing more costly or dilutive over the medium term.
Renewed Cash BurnA sharp swing to materially negative operating cash flow indicates the company is again consuming cash to run operations. Persistent cash burn raises liquidity risk, increases dependence on external financing, and can force dilutive capital raises or asset disposals.
Revenue Decline And Margin CollapseSustained revenue decline and a collapse in gross and net margins point to structural demand, pricing, or cost issues. Without reversing these trends, the business faces difficulty achieving scale, restoring profitability, or justifying continued investment over the medium term.