Negative Cash FlowReported negative operating cash flow and negative free cash flow mean internal operations aren't generating the cash needed for investment or debt service. Persisting cash deficits raise reliance on external funding, heighten refinancing and interest risks, and limit ability to execute recovery plans over months.
Deteriorated MarginsNegative gross and net margins indicate costs materially exceed revenues, signaling structural issues in pricing, product mix, or cost control. Margin erosion undermines sustainable profitability, constrains retained earnings rebuild, and means recovery requires material operating fixes or pricing power improvement.
Severe Top‑line And EPS DeclineRevenue down ~45% and EPS down over 400% point to a major demand, pricing, or structural earnings shock. Such large declines damage scale economics, strain margins and cash flow, and imply the company must rebuild market share and profitability to restore financial health over the coming months.