Persistent UnprofitabilityNegative gross and net margins indicate the company fails to cover direct costs and operating expenses, a structural problem that erodes equity and limits reinvestment. Over months, sustained unprofitability reduces strategic options, pressures working capital, and undermines ability to restore margins without business model or cost structure changes.
Weak Cash GenerationNegative operating and free cash flow signal the business cannot self-fund operations or capital expenditures. This persistent cash deficit increases reliance on external financing, raising execution risk for operational improvements and making medium-term recovery contingent on successful capital raises or rapid cash conversion improvements.
Declining Revenue And Collapsing EPSFalling revenue combined with a massive EPS decline point to deteriorating core demand and worsening profitability per share. These structural trends constrain margin recovery and investment capacity, and suggest management must address both top-line demand issues and cost base to stabilize results over the coming months.