Severe Revenue CollapseAn extreme drop in revenue erodes scale, destroys go-to-market momentum, and prevents absorption of fixed costs. This structural top-line weakness undermines future margin sustainability and makes returning to profitable growth materially more difficult without new revenue drivers.
Persistent Negative Free Cash FlowSustained negative operating and free cash flow signals ongoing cash burn that depletes reserves and forces reliance on external capital. Over months, this reduces strategic options, risks dilution, and limits the company’s ability to invest in product or sales to restore durable growth.
Eroding Equity And Sustained LossesDeclining shareholders' equity from sustained losses shrinks the capital buffer against shocks and constrains funding for operations or growth. Persistent negative ROE indicates the business has not converted capital into profitable returns, a long-term governance and performance concern.