Negative Free Cash FlowPersistent negative free cash flow from heavy capex reduces financial flexibility and increases reliance on external financing. Over months this can constrain ability to fund growth initiatives, dividends, or debt reduction, and heightens exposure if revenue growth slows or capex needs persist.
Rising Liabilities And Debt RiskGrowing liabilities and leverage elevate refinancing and interest-rate risk and reduce balance sheet optionality. Over a multi-month horizon higher debt can pressure net income via interest costs and limit capital allocation choices, restraining strategic investments or buffer for downturns.
Relatively Low Net Profit MarginA modest net margin, even with improving gross/EBITDA margins, signals remaining cost, SG&A, or financing pressures that limit cash returns. Durable profitability constraints could slow free cash flow recovery and investor returns unless operational or financial efficiencies are further realized.