Dependence On Government ContractsBusiness is highly contract-driven with revenue tied to government and diplomatic tenders; renewals and tender wins create structural revenue visibility risk. Over 2–6 months, lost or delayed renewals can materially swing volumes and utilization for processing centers.
Margin Pressure From CompetitionThe company’s service-centric model can attract competition and regulatory limits on add-ons, forcing price or service investments to retain contracts. Over months this could erode reported margins and require higher sales/SG&A to defend market share, reducing structural profitability.
Substantial Investing OutflowsSignificant investing outflows, while funding expansion or tech, may pressure near-term free cash flow if returns are slow. Over a 2–6 month horizon, heavy capex or acquisitions that underdeliver could strain liquidity or force trade-offs in capital allocation decisions.