Sharp Recent Revenue DeclineA nearly 40% revenue contraction signals loss of project momentum or contract pipeline weakness. Persistently lower scale reduces bargaining power with suppliers, increases per-project fixed-cost absorption, and undermines sustainable recovery of margins and profitability.
Low Gross Margin And Negative Net MarginThin gross margins and overall negative net margins indicate weak pricing power, execution inefficiencies or adverse mix. Over time this limits reinvestment capacity, raises sensitivity to input-cost inflation, and constrains ability to build reserves for slower project cycles.
Consistent Negative Free Cash FlowPersistent negative free cash flow and poor cash conversion place structural strain on liquidity, forcing reliance on external financing. This undermines long-term resilience, can raise financing costs, and limits capacity to fund working capital or pursue new contract awards.