Declining Revenues & LossesSustained revenue declines combined with negative profitability indicate persistent demand or execution problems. Continued top-line contraction undermines operating leverage and makes it harder to achieve break-even, forcing reliance on external funding or cost cuts that can impair long-term competitiveness.
Weak Cash GenerationNegative operating and free cash flows signal poor cash conversion from operations, constraining reinvestment in production and R&D. Over a multi-month horizon this heightens financing risk, may necessitate dilutive capital raises, and limits ability to scale or fulfill large contracts.
Low Gross MarginsA 9.06% gross margin points to high production or input costs relative to pricing power. Margin pressure erodes capacity to fund SG&A and R&D, and makes profitability sensitive to volume swings. Without durable margin improvement, long-term competitiveness and cash flow sustainability are at risk.