Steep Revenue DeclineRevenue has fallen sharply over multiple years, eroding scale and pricing leverage. Persistent top-line contraction undermines margin sustainability, reduces bargaining power with suppliers, and hampers the firm's ability to cover fixed costs, challenging long-term viability.
Negative Operating Cash FlowConsistent negative operating and free cash flow indicate the business does not generate internal funds to sustain operations or investment. This forces reliance on external financing, which is structurally risky and can limit the firm's ability to invest in growth or endure a prolonged turnaround.
Shrinking Equity And Rising LeverageA pronounced decline in equity alongside higher debt-to-equity raises solvency and interest-cover risks. Higher leverage constrains financial flexibility, increases refinancing risk and may force asset sales or restructuring, impairing the company's ability to execute long-term recovery plans.