Sharp Revenue DeclineA nearly 34% revenue drop is a material structural weakness that erodes scale advantages, reduces bargaining power with partners, and makes fixed-cost absorption harder. Sustained declines hamper investment in product and customer acquisition, risking a downward performance spiral.
Negative Operating Cash FlowPersistently negative operating and free cash flows signal poor cash generation from core activities, forcing dependence on financing to fund operations. Over months this raises liquidity and refinancing risk, constrains strategic investments, and reduces flexibility to pursue growth opportunities.
High Leverage & Weak Equity BaseA high debt burden combined with low equity and negative ROE increases financial vulnerability. Leverage amplifies downturns, increases fixed interest costs, and limits ability to raise capital on favorable terms, making sustained investment or weathering shocks more difficult.