High And Stable MarginsSustained ~66% adjusted EBITDA margins imply structural operating leverage from scalable live-studio tech and content. High margins support persistent free cash generation, fund product/studio investment, and enable sizable shareholder returns even if top-line growth lags.
Conservative Balance SheetExtremely low leverage gives the company durable financial flexibility to fund organic growth, complete acquisitions (e.g., Galaxy), withstand regulatory shocks, and maintain buybacks/dividends without stressing liquidity or requiring dilutive financing.
Robust Cash Generation & ReturnsHigh cash conversion and a large cash balance underpin repeatable shareholder returns and fund reinvestment. Strong FCF mitigates earnings volatility, finances studio/product expansion, and preserves strategic optionality over multiple quarters.