Negative Free Cash FlowA shift to negative free cash flow shows earnings are not converting into cash, weakening liquidity and reducing the firm's ability to invest, pay dividends or deleverage. If persistent, it undermines financial flexibility and raises refinancing or funding risk.
Rising LeverageIncreasing leverage raises fixed obligations and sensitivity to interest rates, narrowing the margin for error in volatile markets. For a capital-markets business, higher debt can pressure capital ratios and limit strategic options, elevating structural financial risk.
Weakening Revenue And Net MarginDeclining revenue and compressing net margin point to structural pressure on profitability or demand. Over months, such trends reduce retained earnings, constrain reinvestment and dividend capacity, and may reflect competitive or market share erosion if not reversed.