High LeverageSignificant leverage reduces financial flexibility and increases interest burden, constraining investment and strategic initiatives. With elevated debt levels, the company faces greater refinancing and solvency risk if margins or cash flows falter, making durable recovery dependent on deleveraging or improved profitability.
Profitability Pressure & Margin ErosionNegative net margins and declining gross and operating margins show revenue growth hasn’t translated into sustainable profits. Persisting margin erosion undermines free cash generation and return on capital, challenging long‑term viability unless structural cost or pricing improvements are implemented.
Negative Free Cash FlowRepeated negative free cash flow limits the company's ability to reinvest, pay down debt, or fund growth from internal resources. Over several months this increases dependence on external financing, which is risky given already high leverage and volatile profitability, pressuring long‑term financial stability.