Debt Increase In 2025A sharp rise in total debt materially raises leverage and refinancing risk if cash generation does not scale. Over the next several months higher interest and principal obligations could constrain capital allocation, increase financial volatility, and limit strategic optionality.
Free Cash Flow VolatilityZero reported free cash flow in 2025, after prior volatility, signals weak cash conversion or heavy reinvestment. Persistently volatile or negligible FCF undermines ability to service higher debt, fund capex organically, or return capital, creating a durable constraint on financial flexibility.
Moderate Margins Vs. GrowthWhile revenue is accelerating, margins have not scaled proportionally. Sustained moderate margins relative to rapid topline growth limit incremental free cash and make it harder to absorb higher leverage or fund aggressive expansion without margin improvement.