Negative Free Cash FlowSustained negative free cash flow (-130.67M) signals that capex, working capital or other cash demands exceed operating cash generation. Over months, this constrains capacity to fund growth, pay down debt or return capital without external financing.
Leverage-related VulnerabilityAlthough leverage is moderate, management's own note on higher leverage risk plus a beta >2 indicates earnings volatility. In a cyclical commodity sector, leverage can amplify stress on cash flows and raise refinancing or covenant risks during weak seasons.
Compressing Net MarginA dip in net margin to 8.28% despite gross margin improvement suggests rising other expenses, interest or taxes are eroding bottom-line durability. Persistently lower net margins reduce retained earnings and the company's ability to self-fund strategic investments.