Steep Revenue DeclineA nearly 50% revenue contraction signals lost sales, contract attrition, or demand weakness. This materially reduces scale, worsens fixed-cost absorption, and undermines margin recovery prospects. Without reversal, the decline will pressure investment capacity and competitive positioning in the medium term.
Persistent UnprofitabilityConsistent net losses and negative operating margins indicate the business is not generating sustainable operating profits. Prolonged unprofitability erodes retained earnings, limits reinvestment, and may force restructuring or external financing, impairing long-term strategic execution if not addressed.
Negative Operating & Free Cash FlowOngoing negative operating and free cash flows mean the company cannot self-fund working capital, capex, or debt service. Reliance on external financing raises liquidity and refinancing risk and constrains the ability to invest in efficiency or growth initiatives over the next 2–6 months unless cash generation improves.