High Gross MarginsSustained gross margins near 70%–76% indicate structural product or service economics and pricing power. High gross margins provide durable earnings leverage, allowing the company to absorb SG&A and invest in growth while preserving operating profitability over the medium term.
Conservative Balance SheetZero reported debt materially reduces financial risk and gives management flexibility for strategic investment, M&A, or capital returns. A debt-free position improves resilience in downturns and lowers default/default-related costs, supporting long-term operational stability.
Positive Cash GenerationConsistent positive operating and free cash flow, with FCF roughly matching net income in 2025, shows the business converts profit into cash. This durable cash generation supports reinvestment, working-capital needs and strategic optionality without reliance on external financing.