Deep, Persistent Negative MarginsConsistently negative gross and operating margins point to unprofitable unit economics and structural cost issues. Persistent margin losses erode equity, limit reinvestment and require continuous external funding, constraining the company's ability to scale profitably without major cost or pricing changes.
Sharp Revenue DeclineA near-42% revenue contraction materially reduces scale and worsens fixed-cost absorption, weakening gross margin recovery prospects. Rapid top-line decline compresses cash generation, shortens runway and increases dependency on securing new long-term contracts to stabilize operations.
Negative Operating Cash Flow And Liquidity PressureNegative operating cash flows and reported liquidity pressure indicate the company is burning cash to run operations. Poor cash conversion increases reliance on external financing and limits capacity to fund expansion or R&D, raising execution risk over the medium term if cash generation does not improve.