Persistent Negative Free Cash FlowConsistently negative free cash flow signals weak cash conversion and constrains the company's ability to pay down debt, invest selectively, or return capital. Over months this reduces optionality and increases reliance on external liquidity and asset monetization to bridge funding gaps.
Margin Erosion And Earnings DeteriorationSharp margin compression and a move from profit to loss reflect structural pricing, mix, and cost pressures. Sustained weaker margins impair cash flow generation and reduce the cushion to absorb further demand weakness or input-cost swings, prolonging recovery timelines.
Elevated Leverage And Limited Capital OptionsHigh leverage (≈5x) leaves the company vulnerable to continued earnings weakness and covenant pressure. Management's reluctance to pursue an equity raise narrows strategic options, meaning sustained downside could force asset sales or tougher restructuring, constraining long-term flexibility.