Inconsistent And Declining RevenueDeclining top-line and inconsistent revenue trends undermine scale benefits and make gross margin leverage harder to realize. Persistent revenue contraction weakens cash generation, pressures operating margins and raises the bar for achieving sustainable profitability.
Negative Operating And Free Cash FlowOngoing negative operating and free cash flow force reliance on external financing to fund operations and capex. This reduces financial flexibility, risks dilution or higher interest costs, and constrains sustained investment in product development and manufacturing scale.
High Leverage / Reliance On Debt FinancingElevated leverage increases fixed financial obligations and vulnerability to sales volatility. If revenue recovery lags, servicing debt burdens margins and limits strategic options, making deleveraging or refinancing a potential multi-quarter headwind to capital allocation.