Consistent Net LossesOngoing net losses erode retained earnings and ROE, constrain reinvestment capacity and limit options like dividend payments or M&A. Persistent deficits also increase the risk of asset impairments and weaken investor confidence in the firm's ability to deliver durable profitability.
Declining RevenueA material revenue decline (~-16% reported) reduces economies of scale and pricing leverage, stressing fixed-cost absorption and pressuring margins. Without a clear revenue recovery, weaker top-line trends can undermine the sustainability of recent cash flow improvements.
Negative Operating MarginsA negative EBITDA margin and low EBIT indicate operational inefficiencies or high fixed costs that impair core profitability. Even with cash improvements, structurally weak operating margins make earnings recovery harder and leave limited room for investment or competitive pricing moves.