Slowing Revenue GrowthA material slowdown from prior high growth to low single digits reduces top-line momentum and limits future operating-leverage gains. Over 2-6 months this trend can constrain incremental margin expansion, capex payback timelines, and the company’s ability to expand market share.
Volatile Free Cash Flow TrendDeclining and uneven FCF growth introduces uncertainty in durable funding for investments, dividends, or debt paydown. Even with high conversion ratios, negative FCF growth suggests timing or cyclicality risks that could restrict strategic choices in weaker periods.
Meaningful Absolute Debt LevelWhile leverage metrics improved, a material absolute debt stock can still pressure cash flow under stress and limit rapid strategic moves. Servicing meaningful nominal debt increases refinancing and interest-rate exposure, reducing resilience against prolonged revenue weakness.