Declining RevenueA multi-year revenue decline weakens competitive position and reduces fixed-cost coverage, making margins harder to restore. Shrinking top-line over several years signals structural demand or execution issues that require strategic fixes to stabilize growth.
Persistent Losses And Negative MarginsOngoing net losses and negative operating margins erode equity and limit reinvestment capacity. Sustained unprofitability pressures management to either cut costs, pivot strategy, or seek external funding, all of which affect long-term viability and strategic optionality.
Negative Operating And Free Cash FlowConsistent negative operating and free cash flow indicate cash burn and reliance on financing. Over a multi-month horizon this constrains investment in product and sales, increases refinancing risk, and can force dilutive or restrictive measures if operating cash generation isn't restored.