Negative Operating & Free Cash FlowSustained negative operating and free cash flows indicate the business struggles to convert earnings into cash, restricting reinvestment, debt servicing, and shareholder returns. Over months this undermines liquidity, forces external financing, and limits strategic flexibility.
Inconsistent Profitability & Low MarginsLow and volatile EBIT/EBITDA margins signal structural efficiency problems in operations or cost structure. Without sustained margin improvement, earnings are vulnerable to revenue swings and inflationary cost pressures, reducing the company’s ability to generate durable free cash flow.
Erratic Revenue Trend With Recent DeclineAn inconsistent revenue trajectory and a recent decline point to weakening demand or competitive pressure in the core e-commerce business. Persisting top-line deterioration would erode scale benefits and make margin recovery and cash generation more difficult over the medium term.