Declining RevenueRevenue decline reduces operating leverage and makes fixed costs harder to cover, pressuring margins and cash generation. Over the next several months continued top-line weakness limits options for reinvestment, makes turnaround measures more urgent, and may indicate structural demand or competitive issues.
Negative Cash FlowNegative free cash flow and nil operating cash flow materially constrain liquidity and operational flexibility. Persisting for 2-6 months this forces reliance on external financing or asset disposals, increases refinancing risk, and limits the company's ability to fund day-to-day operations or invest in initiatives that could restore growth.
Persistent Net LossesSustained negative net and operating margins erode shareholder equity and hinder reinvestment. Over the medium term this reduces strategic options, raises the risk of covenant breaches, and makes attracting partners or talent harder unless the company delivers credible margin improvement or structural cost cuts.