Severe Revenue DeclineAn ~85% revenue collapse indicates a fundamental erosion of sales scale or market access. Loss of volume undermines fixed-cost absorption, supplier negotiating power and customer relationships, making recovery a multi-quarter structural challenge rather than a transient issue.
Negative Margins And LossesSustained negative EBIT and net margins mean the core business is not generating profit. Persistent losses erode equity, limit reinvestment, and force reliance on cash reserves or external financing, increasing execution risk for any turnaround plan.
Weak Operating Cash ConversionLow operating cash conversion shows reported earnings are not translating into steady operating cash. That raises concern over sustainability of working-capital dynamics and suggests the recent FCF spike may include non-recurring items, leaving ongoing liquidity exposed.