Sharp Revenue DeclineA steep top-line drop erodes scale advantages and reduces fixed-cost absorption, making margins more volatile. Sustained revenue contraction undermines long-term contract pricing power, advertiser appeal, and ability to invest in product or production capabilities without external funding.
Negative Operating Cash FlowPersistent operating cash outflows indicate the core business does not self-fund growth or working capital. Continued cash burn forces reliance on equity or occasional fundraising, increasing dilution risk and constraining investment in content, sales, or platform improvements over the medium term.
Margin Collapse & Persistent LossesDramatic margin compression and sustained net losses erode shareholder value and limit reinvestment capacity. Structural profitability challenges signal either pricing, cost, or mix issues that, if unresolved, undermine partner confidence and long-term commercial scalability.