Sharp Revenue CollapseA ~66% year‑over‑year revenue decline is a material loss of scale that undermines fixed-cost absorption and bargaining power. If sustained, it erodes the business model, threatens long‑term client relationships, and complicates investment planning and margin recovery.
Deep Negative Free Cash FlowA sharp swing to negative free cash flow and weak OCF coverage reduces internal funding for capex, working capital and dividends. Over months, this forces reliance on external financing or asset sales, constraining strategic flexibility and growth investments.
Margin Compression And Falling ROESignificant margin compression and a sharp ROE decline indicate weakening profitability and capital efficiency. Persistently lower returns reduce the company’s ability to compound shareholder value, limit reinvestment capacity and weaken competitiveness over the medium term.