Severe Revenue DeclineA greater-than-50% revenue decline materially undermines scale economics and market positioning. Such a structural drop reduces pricing power, stretches fixed-cost absorption, and lengthens the recovery horizon; reversing this is critical for meaningful margin and cash-flow restoration.
Negative Operating Cash FlowPersistent negative operating cash flow forces reliance on external financing or asset draws, eroding long-term sustainability. Without a durable move to positive OCF, the company faces ongoing liquidity risk, limited reinvestment capacity, and increased vulnerability to market shocks over the coming quarters.
Persistent Losses & Weak ReturnsOngoing net losses and negative ROE indicate that the business is not generating acceptable returns on capital. This suggests structural inefficiencies or mismatches in strategy, making it harder to attract long-term capital and necessitating substantive operational or portfolio changes to restore profitability.