Persistent Negative Operating Cash FlowConsecutive years of negative operating and free cash flow weaken financial flexibility, constrain funding for capex and R&D, and increase reliance on external financing. Even with 2025 improvement, persistent cash deficits pose a structural risk to long‑term investment and balance‑sheet stability.
Rising LeverageAn uptick in leverage reduces financial headroom and magnifies downside in cyclical downturns. Higher debt burdens increase interest obligations and limit strategic flexibility (M&A, capex, warranty support), making the business more vulnerable to industry cycles and cash‑flow variability.
Volatile Revenue And MarginsMaterial swings in revenue and profitability indicate exposure to cyclical demand, pricing pressure, or product mix shifts. Such volatility undermines forecasting, hampers sustained margin improvement, and makes long‑term planning and investment decisions riskier for management and stakeholders.