Margin CompressionMargins have compressed versus 2022–2024, implying rising cost pressure or pricing dilution as the business scales. Persistent compression would erode the firm’s attractive profitability profile, limiting free cash flow and reducing the durability of current return metrics.
Volatile Cash GenerationDespite strong reported profits, operating cash flow fell in 2025 and free cash flow declined in 2024–2025, with cash conversion near ~0.40. This cash volatility undermines reliability of internal funding for capex, dividends, or M&A and raises execution risk for growth plans.
Recent Historical Financial StressThe firm’s balance-sheet weakness in prior years (negative equity in 2021, high leverage in 2022) shows the recovery is recent. That history heightens sensitivity to setbacks: progress must be sustained or the company could face renewed funding or solvency pressure under adverse conditions.