Declining RevenueSustained revenue decline erodes scale and weakens bargaining power with suppliers and customers. Over months this reduces margin recovery headroom, limits reinvestment capacity and raises the risk that fixed-cost absorption worsens unless top-line trends reverse.
Persistent Negative Margins And LossesChronic unprofitability signals structural cost or pricing issues. Continued negative margins deplete reserves, restrict reinvestment in product quality or sustainability initiatives, and impair ability to compete with more efficient producers over the coming quarters.
Weak Operating Cash FlowNegative operating cash flow forces reliance on external financing or asset sales to fund operations. Over time this increases financing costs, amplifies dilution or leverage risk, and limits capacity to fund working capital, capex or strategic improvements.