Revenue Decline And VolatilitySteep, erratic revenue trends erode the firm's ability to build scale and leverage fixed-cost production. Over 2–6 months this undermines prospects for sustainable unit economics, makes forecasting harder, and heightens the risk that operations remain loss-making despite scale efforts.
Persistent Negative Cash GenerationDeep, ongoing operating and free cash outflows indicate the business cannot fund operations internally and must rely on external capital. Persisting cash burn over months raises dilution and financing risk and constrains investment in scale or commercialization initiatives.
Deep Negative MarginsSustained negative gross and operating margins show the cost base exceeds revenue generation, preventing reinvestment and eroding shareholder equity. Unless structural cost reduction or significant revenue scale occurs, profitability metrics will continue to impair long-term viability.