Sharp Revenue ContractionA sustained ~58% revenue drop signals loss of end‑market demand or market share; this materially weakens scale economies, bargaining power with suppliers, and fixed cost absorption. Absent a clear revenue recovery path, margins and long‑term competitiveness will remain impaired.
No Operating Or Free Cash FlowThe absence of operating and free cash flow indicates persistent internal funding shortfalls. Over 2–6 months this forces reliance on external financing or equity, constrains capex and working capital, and raises the risk that operational plans cannot be sustained without dilutive or costly funding.
Negative Profitability And ReturnsConsistently negative margins and ROE reflect structural profitability issues, not short‑term volatility. Persistent losses will erode equity cushions, limit reinvestment capacity, and impair investor confidence, making it harder to restore sustainable returns without material business model changes.