Negative ProfitabilityPersistent negative EBIT and net margins mean Broadpeak has yet to convert strong gross margins into operating profits. Continued losses limit retained earnings, reduce ability to reward shareholders, and may force higher spending scrutiny or recurring capital raises.
Weak/volatile Free Cash FlowVolatile and generally weak free cash flow constrains strategic flexibility: it limits capacity for sustained capex, M&A, debt paydown, or shareholder distributions. Over the medium term this raises the risk of dilution or higher financing costs to fund growth.
Inconsistent Revenue GrowthIrregular top-line growth signals execution, market penetration, or pricing pressures in the addressable CDN market. Without consistent revenue expansion, leveraging high gross margins into sustainable operating profits and scaling R&D/sales investments becomes more difficult.