Sharp Revenue ContractionA near-50% revenue drop materially reduces scale economics and strains gross margin absorption. Over the medium term this weakens pricing power, reduces operating leverage, and increases execution risk as fixed costs and commercial investments become harder to cover, making recovery and sustainable growth more challenging.
Persistent Negative Cash FlowConsistent negative operating and free cash flow indicates earnings are not translating to cash, creating lasting funding pressure. Even with low debt, this forces reliance on equity, asset sales, or external funding, limiting reinvestment capacity and increasing dilution or execution risk over the next several quarters.
Earnings Volatility / Return InstabilityLarge swings from strong profit to loss reflect unstable earnings power and operational inconsistency. This volatility undermines strategic planning, makes forecasting difficult, and keeps returns (ROE ~-3% FY2025) unpredictable, complicating capital allocation and investor confidence over the medium term.