Declining RevenueA steep revenue decline (~37.5%) materially erodes the recurring fee base that funds operations and growth. Sustained top-line contraction weakens scale economics in wealth management, pressures adviser productivity metrics and makes margin and cash-flow recovery more difficult without new net flows or acquisitions.
Weak Cash GenerationNegative operating and free cash flows signal an inability to convert reported earnings into spendable cash. Over months this constrains capital allocation, dividend reliability, and funding for technology or acquisitions, and may force reliance on external financing or asset sales.
Legal / Litigation RiskAn ongoing legal dispute creates persistent operational and financial uncertainty. Litigation can produce contingent liabilities, distract management, increase legal costs, and deter clients or partners—effects that can hamper strategic execution and cash preservation over the coming months.