Persistent Negative ProfitabilitySeverely negative EBIT and net margins show operations are destroying value; this is a structural issue not tied to short-term volatility. Continued losses require ongoing capital injections, question unit economics after overheads, and make achieving durable shareholder returns uncertain.
Negative Operating And Free Cash FlowNegative operating and free cash flow, with recent deterioration, indicate the business currently fails to convert revenue into cash. This structural cash shortfall forces dependence on external funding, limiting ability to scale, invest in systems, or support long sales cycles without dilutive or costly financing.
Revenue Volatility And Recent DeclineMaterial revenue volatility and a recent ~29% drop point to unstable demand from heavy-industry clients. Persistent top-line instability undermines the firm's ability to absorb fixed costs, plan capacity, and convert high gross margins into consistent operating profit over the medium term.