Sustained Revenue DeclineA multiyear collapse in revenue materially weakens scale economics, reduces bargaining power with suppliers, and erodes market position. Such structural top-line contraction increases per-unit costs and makes restoring profitability harder absent clear new business wins or market repositioning; recovery typically requires substantial strategic change.
Persistent UnprofitabilityOngoing net losses and worsening operating margins indicate the business is not currently generating returns on capital. Continued unprofitability erodes equity, constrains reinvestment, and limits the company's ability to self-fund growth or bid competitively on projects, requiring sustained structural cost or revenue fixes to restore long-term viability.
Weak And Volatile Cash GenerationInconsistent and recently negative operating cash flows limit the firm's ability to fund operations, capex, or absorb contract timing shocks. Poor cash conversion increases reliance on external funding despite low debt, raising financing risk and potentially forcing asset sales, pricing concessions, or curtailed investments over the medium term if cash generation doesn't stabilize.