Steep Revenue DeclineA nearly 50% decline in reported revenue reflects loss of scale and market traction. Sustained top-line contraction over months undermines gross margins, reduces bargaining power with suppliers, and limits reinvestment capacity, making operational turnaround and profit recovery harder.
Persistent Negative Operating Cash FlowsOngoing negative operating cash generation erodes liquidity and forces reliance on external financing or asset sales. Over the medium term this limits ability to fund working capital, maintain data center capacity, or invest in product development without diluting stakeholders or increasing leverage.
Persistent Losses And Weakening Equity BaseSustained net losses and falling equity shrink the firm’s capital buffer, increasing insolvency risk and restricting access to credit. This structural weakness impairs long-term strategic options, making it harder to pursue large contracts or partnerships that require financial stability.