Falling Revenue And ProfitSustained revenue decline and a 2024 net loss shrink scale and undermine unit economics. Lower top-line momentum pressures pricing and margin leverage, reduces funds for R&D and capex, and risks permanent market-share erosion if slower demand or competitive displacement persists.
Sharp Drop In Operating Cash FlowOperating cash flow collapsing to single-digit millions severely limits the firm's ability to fund working capital, capex and growth internally. Continued weakness would force reliance on external financing or equity, increasing cost of capital and constraining strategic flexibility.
Margin ErosionDeclining gross margins indicate weakening unit economics—driven by cost pressure, pricing stress, or unfavorable mix. Persistent margin erosion reduces return on invested capital and makes it harder to justify reinvestment, threatening long-term competitiveness and profitability.