Severe Cash-flow DeteriorationA dramatic collapse in operating and free cash flow undermines the company's ability to self-fund operations, capex, or dividends and raises the risk of short-term liquidity strain. Persistent weak cash conversion would constrain strategic flexibility and heighten working-capital pressure.
FY2025 Revenue DeclineA 14.5% revenue drop signals possible demand loss, pricing pressure, or contract timing issues. Reduced top-line scale weakens operating leverage, can pressure margins and investment plans, and may indicate structural customer or product challenges that persist beyond a single quarter.
Gross Profit Compression & Earnings-quality RiskSharp gross-profit compression despite stable net income implies mix shifts, one-offs, or margin-recognition issues. Combined with weak cash conversion, this raises earnings-quality concerns: reported profits may not convert to durable cash flows, risking future margin sustainability and investor confidence.