High LeverageSignificant leverage reduces financial flexibility and increases interest and refinancing risk. High debt levels constrain investment in growth, heighten vulnerability to rate changes or revenue shocks, and can force priority on deleveraging rather than strategic initiatives or R&D.
Negative Operating Cash FlowNegative operating cash flow indicates the core business is not self-funding. Persistent OCF deficits limit the company's ability to service debt, invest in capabilities, or build reserves, increasing reliance on external financing and raising the risk of liquidity shortfalls over the medium term.
Declining Profitability And MarginsNegative and falling margins erode returns and shareholder equity over time. Continued margin pressure constrains reinvestment, weakens ability to fund marketing or tech investments crucial in digital services, and may necessitate structural cost or pricing changes to restore sustainable profitability.