Negative Operating And Free Cash FlowNegative operating and free cash flow despite reported profitability is a structural concern. Weak cash conversion reduces the company’s ability to fund capex, service debt, or build liquidity, constraining strategic flexibility until operating cash generation normalizes.
Rising Financial LeverageDebt-to-equity doubling to 0.44 raises refinancing and interest burden risk. Higher leverage can strain resilience during downturns and limits financial flexibility, especially troubling given current negative cash flow metrics that hamper debt servicing capacity.
Fluctuating EBIT/EBITDA MarginsVolatility in EBIT and EBITDA margins signals inconsistent operational performance and execution risk. Without stable margin improvement, revenue gains may not translate into reliable operating cash flow, increasing earnings volatility over the medium term.