Sharp Revenue Decline And Negative MarginsA nearly 29% revenue drop alongside negative EBIT and net margins indicates weakening product traction. Sustained top‑line deterioration undermines reinvestment capacity for content and marketing, risks partner confidence and makes achieving consistent profitable growth more difficult over the coming months.
Negative Operating And Free Cash FlowPersistent negative operating and free cash flow constrains the company’s ability to internally fund game development, live-ops and user acquisition. Reliance on external financing increases financing cost and execution risk, limiting strategic flexibility in a 2–6 month horizon.
Elevated Leverage And Weakened Balance SheetA D/E near 2x and falling equity ratio reduce financial resilience and increase interest and refinancing exposure. High leverage limits capital available for product investment and raises solvency risk, constraining the company's ability to execute growth initiatives over the medium term.