Advertising Algorithm DisruptionAn algorithm change at the largest advertising partner redirected lower-quality traffic and de-prioritized the try-before-you-buy offering, sharply raising acquisition costs and reducing revenue visibility.
Profitability Strain From ReturnsHigher return rates from the try-before-you-buy model reduce first-order profitability and make those customers less attractive to advertising platforms, amplifying acquisition challenges.
Sustained Financial Pressure From Ad SpendManagement's decision to continue investing in the impacted advertising channel despite unprofitable initial orders risks prolonging margin pressure and weighing on earnings until acquisition economics improve.