Revenue Collapse & Negative MarginsA precipitous decline in revenue and gross-profit inversion materially erode scale economics and fixed-cost absorption. Persistently weak top-line undermines long-term contract leverage, raises unit costs, and makes it harder to sustain operations or finance turnaround investments without structural recovery in volumes or commodity realizations.
Persistent Negative Free Cash FlowRepeated negative free cash flow reduces the company's ability to self-fund maintenance, plant upgrades or expansion. Over months this forces reliance on external financing, increasing refinancing and dilution risk, constraining reinvestment into processing efficiency improvements essential for durable margin recovery.
Losses Eroding Equity, Rising Leverage TrendNet losses that shrink shareholders' equity reduce the balance-sheet buffer available to absorb further shocks. Declining equity and an upward leverage trend increase funding costs and limit strategic optionality, making it harder to secure non-dilutive capital or favorable feed‑access terms over a multi-month horizon.