Rising LeverageA sharp rise in leverage materially reduces financial flexibility and raises refinancing and interest-rate sensitivity. Higher debt magnifies downside risk in downturns, constrains strategic agility, and could force prioritization of liabilities over growth investments.
Negative Free Cash Flow In 2025A swing to negative free cash flow implies heavier capex or working-capital pressure and increases reliance on external funding. Persistent or repeated FCF deficits would impair the company’s ability to reduce leverage, pay dividends, or self-fund strategic initiatives.
Margin Compression TrendA downtrend in net margin despite revenue growth suggests cost or product-mix pressure that could be structural. If margin erosion persists, it will limit the translation of revenue gains into profit, reducing earnings durability and cash available for reinvestment or debt reduction.