Revenue DeclineA recurring revenue decline of ~10.6% indicates shrinking scale and weaker demand or market share. Continued revenue contraction undermines operating leverage, reduces pricing power and limits the company's ability to invest in efficiency improvements or repay debt, pressuring long-term recovery.
Negative ProfitabilityPersistently negative net, EBIT and EBITDA margins signal structural operating losses. This erodes equity, curtails retained earnings for reinvestment and increases dependence on external financing, making sustained recovery harder and raising risk of deeper restructuring over several months.
High LeverageA debt-to-equity ratio of 2.72 combined with negative ROE and low equity ratio shows significant leverage. High indebtedness limits strategic flexibility, raises refinancing and interest coverage risk, and is especially problematic given declining free cash flow, threatening solvency if weak trends persist.