Persistently Negative Free Cash FlowDespite accounting profits, the company has posted negative free cash flow for consecutive years. Persistent FCF deficits reduce the ability to internally fund expansion or return capital, increasing reliance on external financing or equity to support growth initiatives.
Weak Cash Conversion Despite Operating Cash GainsOperating cash improved materially, yet free cash flow stayed negative, implying heavy capex or working-capital absorption. If cash conversion does not stabilize, funding needs may constrain margins, limit reinvestment pacing or force higher external financing costs long term.
Gross Margin PressureA decline in gross margin signals possible input-cost increases or pricing pressure in competitive markets. Sustained erosion at the gross level can compress operating profits and limit the upside from operating leverage unless offset by pricing power or productivity gains.