Return To Net Losses And Compressed MarginsA switch back to net losses and tighter operating margins weakens long-term earnings quality and reduces retained earnings available for reinvestment or dividends. If higher costs or pricing pressure persist, it may impair ROE and constrain strategic flexibility over the medium term.
Rising Leverage From Low BaseRapidly increasing leverage, even from a low starting point, reduces financial flexibility and raises interest and refinancing risks. In a business with weakening profitability, higher debt magnifies vulnerability to cash-flow shocks and limits the firm's ability to invest opportunistically.
Free Cash Flow Fell To Zero In 2025A collapse of free cash flow to zero materially lowers the company's capacity to fund growth, pay dividends, or reduce debt from internal sources. This reduces the margin for operational error and may force external financing or cost cuts if the FCF shortfall persists.