Declining Free Cash FlowNegative free cash flow constrains Mpac's ability to self-fund capex, working capital or acquisitions and increases reliance on external financing. Persisting cash conversion issues risk limiting durable investment in product development and service infrastructure.
Rising LeverageHigher leverage raises fixed obligations and reduces financial flexibility, making the company more sensitive to demand slowdowns or interest rate moves. This limits strategic optionality for M&A, capacity expansion, and margin cushion during cyclical pressure.
Profitability PressureA drop in net margin despite stable gross margins implies rising operating or non-operating costs and weak cash conversion. If persistent, this undermines return on invested capital, hurts ability to fund recurring service delivery, and pressures long-term shareholder returns.