Balance Sheet StrengthAn almost debt-free balance sheet and near-zero debt-to-equity provide durable financial flexibility: supports capex, R&D, and geographic expansion without refinancing risk, lowers solvency risk in downturns, and preserves strategic optionality for M&A or investments over the next 2–6 months.
Improving Free Cash FlowA sharp rebound in free cash flow that now covers a large portion of net income signals improving cash conversion and liquidity. This strengthens the company’s ability to self-fund growth, pay suppliers, and maintain investment without relying on external financing over the medium term.
Stable Revenue & Healthy MarginsConsistent top-line expansion and gross margins north of 50% indicate durable product economics and manufacturing/portfolio strength. Even with recent margin pressure, high gross margins provide a buffer to absorb cost volatility and sustain operating profitability over several quarters.