Declining RevenueSustained revenue decline erodes scale economics and undermines long-term margin recovery. Falling top-line suggests client attrition or weaker trading/investment income, making it harder to leverage the company’s high gross margins into positive net profits without clear revenue stabilization or new growth drivers.
Persistent LossesContinuous operating losses consume equity and limit reinvestment capacity. Even with positive cash flow this year, recurring negative EBIT/EBITDA raises questions about sustainable profitability, may force spending cuts or capital raises, and constrains long-term strategic initiatives and talent retention.
Small Operational ScaleA very small headcount limits distribution, product development, and risk control capabilities for a financial services firm. Scale constraints hinder ability to grow AUM, diversify client relationships, or absorb regulatory and operational overhead, raising execution and concentration risk over the medium term.