High Leverage And Negative EquityNegative equity and heavy leverage materially weaken financial flexibility, increasing refinancing, covenant and counterparty risks. Over coming months this constrains strategic options, raises interest burden sensitivity, and heightens the chance of liquidity stress.
Declining Revenue TrendA persistent top-line contraction reduces scale benefits and pressures unit economics. If revenue declines continue, the company risks eroding margins, losing bargaining power with suppliers and customers, and facing tougher funding conditions for strategic investments.
Weak Cash Generation And Free Cash Flow DeclineDeteriorating free cash flow and problematic cash conversion raise near-term liquidity concerns. Limited internally generated cash forces reliance on external financing, which is harder given negative equity and leverage, constraining capex, debt service and shareholder returns.