Negative Gross Profit & MarginsNegative gross profit and a -24.2% net margin indicate a breakdown in unit economics from pricing, costs or adverse mix. Persistent negative margins will erode capital and require structural changes—cost cuts, pricing renegotiation, or a different service mix—to restore durable profitability.
Persistent Cash BurnConsistently deeply negative operating and free cash flow show the business is not self-funding. Ongoing cash burn increases funding risk, constrains reinvestment, and makes long-term viability dependent on either sustained operational improvement or external financing.
Equity Erosion / Weakening Capital BaseSharp equity decline signals value erosion and weaker capital buffers, reducing the company's financial flexibility. Lower equity heightens dilution risk if capital is raised and leaves the firm more vulnerable to industry shocks or prolonged revenue weakness.