Sharp Revenue CollapseA near-total revenue decline undermines the company's core ability to generate interest and fee income and erodes operating leverage. Such a structural drop reduces scale, weakens marketplace liquidity, and makes sustaining fixed costs, funding lines and product investment materially harder over the medium term.
High Leverage And Low EquitySignificant leverage with a thin equity base increases vulnerability to funding shocks and interest-cost volatility. Combined with ongoing losses, high debt limits strategic flexibility, raises refinancing risk for warehouse/funding facilities, and constrains the company's ability to sustain origination volumes during downturns.
Negative And Inconsistent Free Cash FlowPersistent negative or inconsistent free cash flow restricts reinvestment in technology, marketing and credit acquisition, and forces reliance on external funding. Over months this pressure can limit loan-origination capacity, raise funding costs, and increase dilution or leverage risk if profitability isn't restored.