Severe Revenue CollapseA ~91% revenue drop indicates fundamental demand or operational issues; such a sharp decline undermines core franchise economics and makes profit persistence unlikely. Rebuilding sustainable top-line requires durable commercial fixes or new contracts, which typically take multiple quarters to materialize.
Large Negative Cash GenerationSustained negative operating and free cash flow erodes liquidity and forces reliance on external financing or equity issuance. Over 2-6 months, continued cash burn can constrain operations, limit investment in growth, and shift management focus to short-term funding rather than long-term execution.
Earnings Quality And VolatilityEarnings driven by one-off items and swing from losses to outsized margins signals weak core operating leverage and low earnings quality. Persistent volatility hampers forecasting, raises execution risk, and makes it difficult to rely on reported profits when assessing sustainable cash returns.