Operating Margin Still ModestDespite very high gross margins, operating margins remain modest, implying cost structure or SG&A scale issues. If operating costs do not normalize with higher revenue, margin expansion may stall and reduce the durability of the profitability turnaround over the next several quarters.
Inconsistent Free Cash Flow ConversionA zero FCF year in 2024 despite positive operating cash flow signals volatile cash conversion and reinvestment timing. This inconsistency weakens near-term cash predictability and could constrain the company's ability to fund growth or shore up the balance sheet when needed.
Rising Total Debt In 2025The increase in total debt in 2025, while leverage remains manageable, reduces balance-sheet flexibility and raises interest and refinancing risk. Higher debt can limit capacity for opportunistic investment or acquisition and makes performance more sensitive to cash-flow volatility.