Negative Equity / Insolvency RiskNegative stockholders' equity is a severe structural weakness, signaling insolvency risk. It restricts access to debt and equity markets, increases likelihood of covenant breaches or creditor actions, and undermines long-term financing options needed for recovery and growth.
Negative Operating & Free Cash FlowSustained negative operating and free cash flow reflect chronic cash burn and liquidity strain. Over months this limits reinvestment, forces reliance on external financing or asset sales, and raises default risk if cash generation doesn't materially improve.
Weak Profitability And Shrinking RevenueNegative gross and net margins combined with sharp revenue decline point to structural demand or pricing issues and poor cost absorption. This erodes scale economics and makes margin recovery difficult without significant business model changes or meaningful top-line stabilization.