Multi-year Revenue DeclinePersistent top-line contraction since 2019 signals structural demand loss or competitive erosion. Continued revenue declines undermine operating leverage, make fixed-cost absorption harder, and constrain the firm's ability to invest in modernization or pricing strategies needed to restore sustainable growth.
Negative Gross And Net MarginsSustained negative gross and net margins indicate the company is not covering core production and operating costs, implying structural cost inefficiencies or weak pricing power. Without margin recovery, the business cannot generate reliable free cash flow to fund operations or service debt over the medium term.
High Leverage And Weak Cash GenerationElevated debt and deteriorating equity reduce financial flexibility and raise refinancing risk, especially as operating and free cash flows are negative. This combination constrains capital allocation, increases vulnerability to rate changes, and limits ability to fund necessary capex or strategic initiatives over months.