Sharply Declining RevenueA sustained ~25% TTM revenue decline erodes scale, reduces ability to cover fixed costs, and weakens competitive position. Over months this trend can impair customer relationships, reduce pricing leverage, and make recovery harder without clear demand or product strategy improvements.
Persistent Negative Cash FlowMaterial negative operating and free cash flows signal an ongoing cash burn that threatens liquidity and restricts investment. Over the medium term this raises refinancing and covenant risk, forcing dilutive funding or asset sales unless cash generation reverses substantially.
Negative Equity And High LeverageNegative shareholders' equity and a large net leverage metric indicate solvency stress and limited balance-sheet flexibility. Structurally, this constrains access to debt/equity markets, increases counterparty risk, and may trigger creditor actions or covenant constraints over the coming months.