Rising LeverageAn uptick in leverage increases fixed obligations and reduces financial flexibility over time. If growth slows or cash flow weakens, interest and principal servicing could constrain investment in R&D or partnerships, raising execution risk for long-term product and market expansion plans.
Volatile Free Cash Flow GrowthWhile FCF relative to net income is strong, large swings in free cash flow growth signal inconsistent conversion of earnings into spendable cash. Persistent volatility can complicate long-term planning, capital allocation, and capacity to fund acquisitions or multi-year AR projects reliably.
Low Net Profit MarginA thin net margin suggests high operating or SG&A load relative to revenue, limiting retained earnings and cushion against downturns. Over the medium term this constrains reinvestment and shareholder returns unless margin expansion continues or cost structure is materially improved.