Revenue DeclineA sharp year-over-year revenue drop weakens long-term scale economics and raises concern about demand for core services. Sustained top-line contraction would pressure margins, limit capacity to invest in growth initiatives, and make profitability improvements harder to sustain.
Earnings VolatilityRecent swing from negative to positive net margins indicates earnings are sensitive to cyclical or discrete factors. This volatility complicates forecasting, raises the risk premium on strategic projects, and suggests profitability could revert if revenues falter again.
Historic FCF InstabilityAlthough current cash conversion is strong, prior negative free cash flow growth shows the recovery is recent and not yet entrenched. Past FCF weakness implies limited buffer for consistent reinvestment, dividends, or M&A until multi-period FCF growth is re-established.