Sharp Revenue DeclineA steep revenue drop of ~44% signals weakening demand or lost projects and reduces scale economics. Persisting declines impair fixed-cost coverage, lower negotiating leverage with partners, and make multi-month recovery harder without new contract wins or a change in sales pipeline mix.
Severely Negative ProfitabilityExtremely negative EBIT and net margins indicate costs far exceed revenues and that core operations are loss-making. Such structural unprofitability will rapidly erode equity, limit reinvestment, and require either sustained margin recovery or external capital to avoid long-term viability issues.
Weak Cash Generation And Higher LeverageNegative operating and free cash flow, combined with rising debt-to-equity (0.715), constrain liquidity and increase financial risk. Over months this limits ability to fund productions, meet vendor terms, or invest in AR/VR capabilities without refinancing or partner funding, pressuring strategic options.