Severe Revenue ContractionA greater-than-50% revenue decline signals material demand loss or contract attrition, eroding scale and fixed-cost absorption. Such a structural drop impairs operating leverage, reduces EBITDA potential, and lengthens the timeline for restoring profitability absent clear revenue recovery initiatives.
Negative Operating And Free Cash FlowPersistent negative operating and free cash flow undermines internal funding for working capital, maintenance capex, and reinvestment. Over months, this forces reliance on external financing or asset sales, increasing cost of capital risk and constraining the company's ability to execute strategic initiatives.
Margin And Profitability DeteriorationNegative net margins and falling EBIT/EBITDA margins reflect weakened operational efficiency and profitability. Structurally lower margins reduce buffer against cost shocks and interest burdens, making the business more sensitive to revenue variability and limiting room to invest in growth or service quality improvements.