Negative Shareholders' EquityNegative equity signals solvency weakness and that liabilities exceed assets, limiting the firm's financial flexibility. Over months this constrains borrowing capacity, increases refinancing risk, and may force dilutive financing or restructuring, undermining long-term operational plans.
Persistent Negative Operating And Free Cash FlowOngoing cash burn from negative operating and free cash flow means the business cannot self-fund growth or cover obligations. Reliance on financing or forbearance is unsustainable long-term, raising liquidity and covenant risks and limiting ability to invest in product development or customer expansion.
Declining Revenue Trend And Sustained LossesA multi-year decline in revenue combined with negative gross and EBITDA margins indicates structural demand or pricing issues and poor unit economics. Persistent losses impede reinvestment, make margin recovery harder, and increase dependence on a few customers or one-off measures to stabilize results.