Sharp Revenue DeclineA ~44% revenue contraction materially erodes scale economics and operating leverage. Persistent top-line decline reduces margin potential, limits reinvestment capacity, and requires a multi-quarter structural recovery in sales to restore financial health and competitive footing.
Loss-making OperationsTransition to sizeable net losses and negative operating margins signals structural profitability pressures—cost inflation, pricing weakness, or operational inefficiency. Sustained losses impair ability to fund capex and R&D internally and raise dependence on external capital.
Weak Operating Cash GenerationNegative or zero operating cash flow over consecutive periods shows inability to convert earnings into cash, increasing liquidity risk. This constrains working capital and capex, forces reliance on external financing, and heightens vulnerability to market or funding shocks.