Cash Conversion VolatilityWhile free cash flow improved, inconsistent conversion of accounting profits into operating cash highlights working‑capital and timing risks. Periodic OCF shortfalls versus net income can constrain liquidity for capex, reduce predictability of buybacks/dividends, and complicate planning.
Margin Variability Over TimeProfitability has fluctuated, indicating sensitivity to cost structure, growth investments or product mix. This variability raises the risk that margin compression could occur if competitive or investment pressures intensify, making long‑term margin forecasts less certain.
Exposure To Lower‑Margin Hardware & Partner ChannelsReliance on hardware sales and partner distribution creates potential margin dilution versus pure SaaS, and makes customer acquisition and retention partly dependent on third parties. That structural mix can limit margin expansion and increase execution complexity over time.