Revenue DeclineA roughly 31% revenue decline signals material demand loss or contract attrition, reducing scale and hurting operating leverage. Persistent top-line weakness undermines margin recovery and constrains reinvestment, making operational improvement harder over a multi-month horizon.
Pressure On Profitability MarginsSustained pressure on EBIT/EBITDA and volatile net margins indicate weakened pricing power or cost inefficiencies. Margin compression reduces cash available for debt service and capex, and if structural, will impair returns and strategic flexibility over the medium term.
Volatile / Negative Free Cash FlowHigh capex driving negative or inconsistent free cash flow creates funding pressure and may force external financing or cutbacks. If FCF volatility persists, it limits dividends, debt reduction, and strategic investments, raising balance-sheet and execution risk over coming months.