Negative Profitability (EBIT & Net Loss)Persistent operating and net losses constrain the firm's ability to reinvest, pay creditors, or build reserves. Continued unprofitability undermines long‑term sustainability, hampers strategic execution, and may force reliance on external funding, affecting stability over the coming months.
Material Margin DeteriorationA sharp decline in gross margin over several years signals structural pricing pressure, rising costs, or weaker pricing power versus competitors. Reduced gross profitability limits capacity to absorb operating expenses and invest in service capabilities, threatening margin recovery prospects.
Weak Cash GenerationConsistent negative operating and free cash flow indicate the business struggles to convert revenues into cash, increasing dependence on financing. Poor cash generation constrains capex, working capital management and resilience to shocks, making medium‑term operational plans riskier.