Sustained Revenue DeclineTwo consecutive years of revenue contraction signal weakening market traction and impair operating leverage. Persistent top-line decline makes recovery harder, limits economies of scale, and increases pressure on margins and cash, raising the bar for a durable return to profitability.
Persistent Operating LossesOngoing negative EBIT/EBITDA shows the cost base outstrips gross profit and reflects structural profitability issues. Without sustained revenue growth or permanent cost redesign, continued operating losses will erode equity, drive cash burn, and restrict ability to fund growth or investing priorities.
Rising Leverage And Weakening EquityA near-doubling of debt-to-equity driven by shrinking equity signals deteriorating financial resilience. Higher leverage reduces flexibility to withstand shocks, increases refinancing and covenant risk, and may force dilutive or costly funding if operating cash flow remains negative.