Declining Revenue TrendA sustained top-line decline, including a ~16% recent drop, impairs operating leverage and reduces funds available for R&D, sales expansion, and marketing. Without a reversal, falling revenue undermines the business’s ability to achieve scale economics and reach a sustainable break-even within a multi-month horizon.
Persistent Negative ProfitabilityConsistent negative EBIT/EBITDA and net margins indicate the company is not covering operating costs from core activities. Over months this erodes retained earnings, limits reinvestment capacity, and increases reliance on external financing, constraining strategic initiatives and reducing resilience to market shocks.
Ongoing Cash BurnNegative operating cash flow and continued negative free cash flow signal ongoing cash burn. Over a 2-6 month horizon, this pressures liquidity and forces either cost cuts or external funding, reducing optionality for growth investments and heightening execution risk until operating cash generation turns positive.