Declining RevenueSustained revenue decline reduces scale, weakens bargaining power with partners, and limits fixed‑cost absorption. Continued top‑line contraction can prevent the business from achieving the revenue base needed to turn operating losses into profits over the next several quarters.
Deep Operating LossesVery large negative EBIT and net margins signal structural unprofitability: operating costs and SG&A are far outpacing gross profit. Without significant cost restructuring or revenue recovery, these persistent losses will erode equity and constrain reinvestment options.
Negative Operating Cash FlowConsistent negative operating cash flow indicates the business is not self‑funding its operations, forcing reliance on external financing or asset draws. This undermines long‑term sustainability and can limit funding for product development and customer acquisition over coming quarters.