Declining RevenueA double-digit revenue decline erodes scale and limits ability to spread fixed costs, making margin recovery harder. Continued top-line contraction increases execution risk for any turnaround, reduces bargaining power with suppliers, and narrows options to restore sustainable profitability over coming quarters.
Negative Operating Cash FlowNegative operating cash flow means core operations are not self-funding, forcing dependence on financing or asset sales. This undermines operational durability and constrains reinvestment in growth or margin-restoring initiatives unless negative OCF is reversed within a medium-term timeframe.
Persistent UnprofitabilitySustained negative net and operating margins indicate the business is not generating operating returns, which erodes shareholder equity and limits reinvestment. Without a credible path to positive EBIT/EBITDA, the company faces constrained strategic options and weaker investor confidence over months.