Negative Free Cash FlowPersistent negative free cash flow and declining FCF growth create structural liquidity pressure. Over several months this can force external financing, restrict discretionary investments, raise funding costs, or lead to dilution—limiting the company's ability to execute development or sustain operations.
Persistent UnprofitabilityNegative net and EBIT margins indicate the business cannot yet convert gross profit to operating or net income. Structurally, this suggests cost or scale problems that, if unresolved over 2–6 months, will hinder self-funding, erode equity value, and complicate investor confidence in long-term viability.
Severe EPS DeteriorationAn extreme decline in EPS growth reflects deep earnings volatility or large losses. Over the medium term this weakens the company’s ability to retain earnings for reinvestment, undermines credit metrics, and signals that operational improvements or restructuring are required to restore sustainable profitability.