Declining Revenue And Weak MarginsPersistent revenue decline paired with low gross margins undermines scale economics and the path to profitability. Structural gross margin weakness limits the firm's ability to absorb fixed costs, constraining sustainable EBITDA generation and making long-term profitability uncertain without material margin improvement.
Negative Free Cash FlowOngoing negative free cash flow and poor operating cash-to-income ratios mean the business consumes capital to run. This restricts reinvestment capacity, forces reliance on external funding, and creates dilution or refinancing risk, impeding a self-funded growth trajectory over the medium term.
Elevated Leverage And Negative ROEHigh debt-to-equity and negative ROE increase financial risk and interest burden, limiting strategic flexibility for capex or M&A. Persistent losses mean capital is being destroyed rather than earned, making deleveraging and operational turnarounds necessary to restore durable shareholder returns.