High LeverageHigh leverage can increase financial risk, limit flexibility, and strain cash flows, potentially impacting the company's ability to invest in growth opportunities.
Negative Free Cash FlowNegative free cash flow indicates potential liquidity issues, limiting the company's ability to fund operations and invest in future growth without external financing.
Decreasing MarginsDecreasing margins may signal rising costs or pricing pressures, which could erode profitability and affect the company's competitive edge over time.