Rising Debt And LeverageA meaningful debt increase in 2025 and historically volatile leverage reduce financial flexibility and raise refinancing and interest-rate risk. Higher leverage constrains capital allocation, increases cash flow sensitivity to shocks, and can limit strategic investments or acquisitions over the medium term.
Negative Free Cash Flow In 2025The swing to negative free cash flow in 2025 signals heavier capex or weaker cash conversion, increasing reliance on external funding or debt. Persistent negative FCF would pressure liquidity and limit the firm's ability to self-fund growth or pay down elevated leverage over the next several quarters.
Choppy Revenue And Compressed MarginsUneven revenue trends and margin compression reduce the predictability of earnings and long-term return on invested capital. Slower top-line momentum and lower margins constrain internal cash generation and weaken the structural ability to scale profits, making multi-quarter performance more vulnerable to competition and cost shifts.