Declining Revenue TrendA multi-year revenue decline erodes scale, reduces fixed-cost absorption and limits the ability to invest in product, marketing or platform improvements. Structurally lower top-line makes restoring sustainable profitability harder and increases reliance on cost cuts or capital infusions to maintain operations over the medium term.
High Leverage And Falling Equity RatioSignificant leverage with a declining equity buffer increases refinancing and solvency risk. Over 2-6 months, high debt service constrains cash available for reinvestment and limits strategic options, making the company more vulnerable to interest rate moves or revenue shortfalls and reducing financial flexibility.
Consistently Negative Net And EBIT MarginsPersistent negative operating and net margins point to structural unprofitability rather than transitory weakness. Without clear margin improvement or revenue recovery, ongoing losses will deplete equity and require repeated financing, undermining long-term viability and investor returns unless the business model is materially adjusted.