Sustained Revenue DeclineA persistent downtrend in revenue undermines scale advantages and reduces funds available for content development and user acquisition. Continued shrinkage erodes pricing power, limits reinvestment in live-ops, and makes stabilizing monetization more difficult over the medium term.
Negative Operating And Free Cash FlowConsistent negative operating and free cash flows constrain the company’s ability to self-fund updates, marketing, and new launches. Reliance on external financing would increase, raising dilution or interest burdens and reducing strategic flexibility over the next several quarters.
Persistent Losses And Weakened EquityOngoing net losses and negative ROE indicate the business has not achieved profitable operations, eroding shareholder equity. This reduces capacity to absorb setbacks, increases risk of recapitalization, and pressures long-term viability unless operational margins improve.