Sharp Revenue DeclineA nearly 28% year-over-year revenue decline materially reduces scale economics, pressures margin absorption of fixed costs, and constrains reinvestment capacity. Sustained top-line weakness undermines recovery prospects and makes operational fixes and deleveraging more difficult over the medium term.
Negative Free Cash FlowPersistent negative free cash flow limits the company's ability to fund capital expenditures, service debt, or invest in efficiency improvements internally. Continued cash deficits increase reliance on external financing or asset actions and heighten refinancing and liquidity risk over the coming months.
Rising Financial LeverageAn increased debt-to-equity ratio signals heavier reliance on borrowing, raising interest burden and refinancing exposure. Coupled with falling revenue and weak cash flow, higher leverage constrains strategic flexibility and elevates solvency risk if operating trends do not stabilize.