Declining RevenueA >15% revenue decline signals weakening demand or loss of market share. Over months this reduces scale advantages, pressures gross margins and unit economics, and forces harder choices on pricing, cost structure and investment, risking a protracted recovery if root causes persist.
Negative Operating Profitability (EBIT)Negative EBIT indicates the core business fails to cover operating costs after direct expenses. Persisting operating losses erode retained earnings and limit reinvestment, making sustained turnaround dependent on structural cost cuts, price recovery, or portfolio shifts to restore durable profitability.
Weak Cash GenerationAn ~89% drop in FCF growth and very low operating cash flow to net income ratio indicate poor conversion of earnings into cash. This constrains capex, dividends and strategic spending, and increases vulnerability to working-capital swings or external funding needs over the next several months.