Negative Operating And Free Cash FlowA shift to negative OCF and FCF erodes financial flexibility and suggests working-capital pressures or cash-intensive investments. Persistent negative cash conversion can force external financing or cutbacks, undermining growth plans and making operations vulnerable over the medium term.
Sharp Margin CompressionRapid deterioration in operating and net margins signals rising operating costs or less efficient scaling. If structural, compressed margins reduce retained earnings, slow equity returns, and limit reinvestment capacity, threatening sustainability of current growth trajectories.
Weakened Earnings Quality / Cash ConversionA disconnect between reported earnings and cash flow indicates lower earnings quality and potential accruals or receivables strain. Over months, poor cash conversion raises risk that reported profits are less durable, complicates forecasting, and increases reliance on external funding if trends persist.