High Financial LeverageElevated gross leverage limits balance-sheet flexibility and raises refinancing and covenant risk if trading softens. Even with improving cash flow, a high debt stock constrains capital allocation, increases interest exposure, and reduces resilience to adverse demand or cost shocks.
Thin Net MarginDespite strong EBITDA, bottom-line net margin is narrow, leaving limited buffer against rising costs or weaker revenue. Small net margins mean modest earnings drops can erase profitability, impeding sustained cash flow growth and slower deleveraging under adverse conditions.
Rising Cost Pressures & Pilot UncertaintyCentral cost growth and anticipated site-cost inflation (utilities, wages) compress margins and raise operating risk. Early-stage B2B2C pilots add execution uncertainty and may require incremental investment, potentially delaying material returns and straining near-term cash deployment plans.