High LeverageSignificant leverage can lead to financial strain, limiting the company's ability to invest in growth and increasing vulnerability to economic downturns.
Profitability ChallengesLow profitability margins indicate challenges in cost management and pricing power, which could hinder long-term earnings growth and shareholder returns.
Volatile Free Cash FlowVolatile free cash flow can impact the company's ability to consistently fund operations and growth initiatives, posing a risk to financial stability.