Severe Revenue DeclineA near-halving of revenue sharply reduces scale benefits, weakens pricing power, and raises per-unit fixed-cost burdens. Over months this erodes client relationships and reduces investment capacity in product and sales, making sustainable recovery harder absent new contract wins or market repositioning.
Extremely Negative ProfitabilityMargins this deeply negative are structurally damaging: they consume equity, prevent reinvestment and make organic growth funding impossible. Sustained losses force either heavy dilution, asset sales, or major cost restructuring; all reduce competitive capacity and increase long-term survival risk.
Cash Flow Strain And LeverageNegative operating and free cash flow combined with rising leverage squeeze liquidity and restrict capex and hiring. This forces dependence on external funding or asset disposals, raising refinancing risk and limiting the company's ability to execute turnaround plans over the next several months.