Declining Revenue TrendA near-30% revenue drop threatens scale economics that support current margins and fixed-cost absorption. If this decline persists, it can undermine profit sustainability, reduce reinvestment capacity, and make it harder to defend market position against competitors over the next several quarters.
Negative Free Cash Flow And Weak Cash ConversionEarnings are not translating into cash: a low 0.15 operating cash to net income ratio and negative FCF mean the business may require external funding to sustain operations or growth. Over time this can increase financing costs and constrain capital allocation flexibility.
Rising Debt Trend To MonitorAlthough current leverage is low, the recent rise in total debt reduces the margin of safety. Coupled with falling revenue and weak cash flow, a growing debt burden could pressure liquidity and limit the company's ability to invest in projects or respond to market opportunities.