Negative Net MarginsReported net losses erode retained earnings and constrain internal funding for growth or capex. Persistent negative net margins reduce flexibility to absorb shocks, weaken investor confidence, and make raising capital more costly, hampering medium-term strategic initiatives.
Declining And Inconsistent RevenueInconsistent and falling revenues limit scale economies and pressure profitability. Sustained top-line weakness can impair the company’s ability to maintain service levels, invest in property upgrades, and secure long-term leasing contracts, undermining durable growth prospects.
Elevated Leverage RiskRelatively high leverage, despite some improvement, increases refinancing and interest-rate vulnerability. Leverage constrains strategic flexibility, prioritizes debt servicing over growth investment, and raises the risk of covenant pressure during economic or sector slowdowns.