Sharp 2025 Cash-flow DeteriorationA material drop in operating cash flow in 2025 weakens the company's ability to self-fund operations and investment. If driven by working-capital timing or structural demand changes, this deterioration can persist for quarters, constraining capital allocation and raising reliance on external funding.
Free Cash Flow Near BreakevenFree cash flow roughly matching earnings leaves little excess to pay down liabilities, invest, or return capital. Over the medium term this limits strategic flexibility, increases vulnerability to unexpected costs, and may force slower reinvestment or external financing for growth initiatives.
Historical Profitability VolatilityA past episode of negative operating profitability in 2021 highlights cyclicality and sensitivity to shocks. Despite recent recovery, the firm's earnings can swing materially under stress, complicating forecasting and suggesting that margins and cash flows may not be fully stable across cycles.