Declining Revenue TrendA steep revenue decline exceeding 30% signals loss of scale and market traction, which strains margins and operational leverage. Over the medium term, sustained top-line contraction will make fixed costs and debt service harder to cover, forcing difficult trade-offs in pricing or investment.
High LeverageElevated leverage raises fixed financial obligations and reduces flexibility to invest or weather downturns. With limited room to absorb shocks, high debt increases refinancing and covenant risk over months ahead, making operational improvements more urgent to avoid liquidity stress.
Negative EBIT And Net MarginNegative EBIT and net margins mean core operations after depreciation and other costs currently lose money. This structural profitability shortfall, if persistent, will erode equity and cash buffers, complicate debt servicing, and require either sustained margin improvement or external capital to restore financial health.