Rising Absolute DebtA material increase in absolute debt raises leverage and reduces financial flexibility, making the company more sensitive to slower growth or profit shocks. Higher interest and repayment obligations could crowd out investment in product development or acquisitions that fuel long-term growth.
Gross-margin Compression In 2025A notable drop in gross margins suggests adverse mix shifts, pricing pressure, or higher delivery costs that could persist. If structural, sustained margin erosion would impair operating leverage, reduce free cash flow conversion, and limit the ability to fund growth or return capital to shareholders.
OCF < EBITDA Across YearsWhen operating cash flow lags EBITDA consistently, it signals working-capital volatility or recurring cash outflows not captured in EBITDA. This weakens cash predictability, complicates reinvestment timing, and raises the importance of liquidity management under growth or margin pressure.