Sustained Revenue DeclineMaterial top-line contraction undermines scale economics and raises questions about demand, customer retention, or competitive displacement. Persistent revenue decline can erode the base that supports high margins and limit the firm's ability to expand services or invest in platform improvements.
Declining Free Cash Flow GrowthA falling FCF growth trend constrains capacity for reinvestment, dividends, and debt reduction. Even with solid conversion ratios, declining FCF growth signals potential pressure on liquidity generation and reduces optionality for strategic initiatives over the medium term.
Sharp EPS ContractionA large drop in EPS reflects either compressed margins on some products, lower volumes, or one-off items reducing earnings power. Sustained EPS weakness can hamper reinvestment capacity, investor confidence, and the ability to fund long-term strategic programs without external financing.