Negative Operating Cash FlowPersistently negative operating cash flow is a structural red flag: it limits the company’s ability to self-fund working capital and capex, forces reliance on external financing, and raises sustainability concerns if losses continue over multiple quarters.
Severe Revenue DeclineA ~95% reported revenue decline implies loss of core sales or major contracts, creating a long-term scale and demand problem. This structural shrinkage undermines fixed-cost absorption, economies of scale, supplier terms, and makes margin recovery and profitable growth materially more difficult.
Negative And Volatile ProfitabilitySustained net losses and volatile EBIT/EBITDA margins point to operational inefficiencies or unstable product mix. Over time this erodes equity, reduces reinvestment capacity, and increases execution risk for turnaround plans, making consistent earnings recovery uncertain.