Free Cash Flow DeclineDeclining free cash flow despite solid operating cash generation signals heavier capex or working capital needs and weaker cash conversion. Over months this can constrain funding for expansion, increase reliance on external financing, and limit ability to invest in latency-sensitive infrastructure.
Low EBIT MarginA relatively low EBIT margin suggests operating leverage is not fully realized and cost structure or pricing mix needs improvement. Persistently thin operating profitability can limit internal reinvestment, reduce cushion against revenue cyclicality, and pressure long-term cash generation.
Moderate Reliance On DebtModerate reliance on debt increases financial risk if cash conversion weakens or capex needs rise. Over a 2-6 month horizon this can restrict strategic flexibility, elevate interest burdens, and amplify downside in a tightening credit environment or slower subscription renewals.