Material Revenue DeclineA steep, persistent revenue decline undermines scale economies and the ability to fund fixed R&D and service operations. Over several quarters this erodes market position, reduces bargaining power with large institutional customers, and limits reinvestment capacity.
Negative Operating And Free Cash FlowSustained negative operating and free cash flows indicate structural cash burn. This forces reliance on external financing for capex, service contracts, or working capital, which can dilute shareholders or constrain long-term product investment and commercial expansion.
Inability To Generate Shareholder ReturnsNegative ROE and ongoing losses signal failure to convert invested capital into profit. Over the medium term this limits organic growth funding, increases pressure for dilutive funding or cost cuts, and weakens the company's ability to sustain long-term strategic initiatives.