Severe Revenue DeclineA nearly 78% decline in revenue is structurally damaging: it erodes scale, destroys operating leverage, and makes fixed costs harder to cover. Sustained revenue collapse impedes recovery, undermines customer relationships, and limits strategic options without clear growth catalysts.
Weak Cash GenerationNegative operating and free cash flow indicate the core business is not converting sales into cash. Persistent cash outflows constrain reinvestment, increase reliance on external financing, and elevate liquidity and solvency risks if operational performance does not improve.
High Leverage & Eroding EquitySignificant leverage combined with a declining equity ratio heightens financial fragility. High debt amplifies interest burdens and reduces strategic flexibility; falling equity and negative returns signal capital erosion, making the company more vulnerable in prolonged downturns.