Sharp Revenue DeclineA 32.6% year-over-year revenue decline signals meaningful loss of demand or market share, undermining scale economics. Sustained top-line contraction erodes gross profit, magnifies fixed-cost burdens and complicates deleveraging and cash conservation efforts over several quarters.
Negative Free Cash Flow TrendsPersistent negative free cash flow and operating cash shortfalls limit internal funding for R&D, sales and debt service. Ongoing cash burn forces reliance on external financing, increases dilution or interest costs, and constrains strategic investments over the medium term.
High Leverage / Weakened Equity RatioRelatively high leverage and a weakening equity ratio heighten refinancing and solvency risk, particularly with negative profitability and cash flow. Elevated debt limits strategic optionality, increases interest burden and may necessitate costly capital raises in the coming quarters.