Severe Recent Revenue DeclineA two-thirds drop in reported revenue is a material structural concern, eroding scale economics and threatening contract renewal economics. If sustained, such a decline can force pricing pressure, cutbacks, and impair ability to invest in product and client retention over the medium term.
Elevated LeverageSignificant leverage limits financial flexibility and raises refinancing and interest-rate risks. Although improved from prior year, a 1.85 debt/equity ratio still constrains capital allocation, increasing vulnerability to further revenue weakness and reducing capacity for strategic investments.
Weak Cash Conversion From Operating IncomeVery low operating cash conversion implies reported earnings are not reliably turning into operating cash, possibly from working-capital swings or non-cash adjustments. That reduces resilience: profitability may be overstated for funding operations, debt service, or investment without external support.