Negative Operating And Free Cash FlowSustained cash burn is a core durability risk: recurring negative operating and free cash flows will erode liquidity and force reliance on existing cash, asset sales, or external funding. Over several quarters this raises the probability of dilution or constrained investment in growth initiatives.
Revenue Decline And Ongoing LossesTop-line decline coupled with persistent net losses undermines the company’s ability to scale fixed costs into profitable growth. Without consistent revenue recovery, margin gains are insufficient to restore sustainable profitability, prolonging reliance on non-operating support or capital raises.
Eroding Equity And Negative ROEA shrinking equity base and negative ROE reflect that capital invested is not generating returns, reducing the firm’s loss-absorbing capacity. Over the medium term this constrains strategic flexibility, limits M&A or R&D funding from internal resources, and increases sensitivity to shocks.