High LeverageSignificant reliance on debt constrains financial flexibility and raises refinancing and interest-service risk. With elevated leverage, the company faces limited ability to fund capex or absorb shocks, increasing default risk if operational improvements or cash generation do not persist over several quarters.
Negative Cash FlowsPersistent negative operating and free cash flows indicate the business is not self-funding core operations. This forces dependence on external financing or asset sales, undermining long-term reinvestment in growth, straining supplier and creditor relationships, and raising solvency concerns.
Declining Revenue & Net LossA multiyear revenue decline and current net loss point to structural demand, pricing, or competitive problems. Without sustained top-line stabilization, margin gains are fragile and the company may struggle to restore profitability, threatening long-term viability absent strategic corrective actions.