Free Cash Flow VariabilityInconsistent FCF and weak conversion from earnings to cash constrain internal funding for capex, dividends, or acquisitions. That variability raises the chance the firm will need external financing to sustain growth or weather downturns, reducing financial resilience over the 2-6 month horizon.
Recent Revenue DeclineA notable year-over-year revenue decline undermines growth momentum. Even with margin improvements, shrinking top-line pressures scalability, suggests potential client churn or pricing challenges, and requires visible recovery to sustain profitability gains and long-term structural growth.
Historical Operational WeaknessA prior negative EBIT indicates the business can be sensitive to project timing, cost overruns, or demand swings. While margins have since improved, this history highlights execution risk and the need for consistent margin discipline to prevent recurrence and protect long‑term profitability.