Steep Revenue DeclineA ~50% revenue drop undermines scale economics, campus utilization, and tuition revenue stability. Persistent enrolment shortfalls reduce gross intake and limit the company’s ability to leverage fixed costs, making recovery and margin maintenance more difficult over the medium term.
Weak Cash Flow ConversionSevere free cash flow deterioration and poor conversion of reported income into cash constrain internal funding for working capital, capex, and marketing to drive enrolments. This increases reliance on external financing and intensifies liquidity risk over coming quarters.
Low Returns On EquityA ROE near 1.4% indicates the business is generating minimal returns on invested capital. Even with margin gains, low ROE implies capital inefficiency or underutilized assets, which hampers long-term shareholder value creation unless revenue and cash generation materially recover.