Sharp Revenue ContractionA sustained ~35% TTM revenue decline erodes scale, reduces fixed-cost absorption, and pressures margins. Continued top-line shrinkage limits reinvestment capacity, risks contract renewals, and undermines the company’s ability to rebuild growth without meaningful operational or commercial improvement.
Highly Stressed Balance SheetNegative equity and a large net leverage ratio constrain financing options, increase refinancing and covenant risk, and raise the cost of capital. This structural weakness limits strategic flexibility, hampers M&A or investment ability, and elevates default risk under adverse conditions.
Margin Compression And Weakening Cash GrowthLower gross margins and a steep decline in FCF growth indicate deteriorating unit economics and strained liquidity. Margin erosion reduces operating leverage and free cash for reinvestment, making it harder to improve competitiveness and service debt over the medium term without structural fixes.