Sustained Revenue DeclineA roughly 41% revenue contraction and multi‑year top‑line decline signal either structural demand loss or market share erosion. Persistent falling revenues reduce operating leverage, strain dealer relationships and limit reinvestment capacity, making recovery harder without substantive strategic or market changes.
Negative ProfitabilityReported net losses and negative operating margins indicate entrenched cost or pricing issues and operational inefficiency. Sustained unprofitability erodes shareholder equity, restricts reinvestment in sales and service capabilities, and raises the likelihood of credit covenant pressure and higher financing costs over the medium term.
Weak Cash Flow And Rising LeverageNegative free cash flow and inconsistent operating cash generation, coupled with increasing leverage and weakening equity ratios, materially reduce financial flexibility. This structural liquidity strain raises refinancing risk, constrains capital expenditure, and may force asset sales or dilutive funding to cover obligations.