Recent Revenue And Earnings DeclineRevenue and net income declined in 2025, indicating a near-term demand slowdown. For a consulting firm, sustained revenue weakness would erode operating leverage, compress returns and limit reinvestment capacity, creating a durable headwind to restoring prior profitability levels if it persists.
Margin Compression & Weaker Cash ConversionNet margin compression and a sharp drop in operating cash flow conversion to ~0.53 suggest rising cost pressure or working-capital drag. This reduces sustainable cash available for growth and returns, and if structural, can depress ROE and limit strategic options over the medium term.
Free Cash Flow VolatilityHistorical FCF volatility, including a notable negative year in 2020, implies episodic cash strain despite low leverage. Volatile cash flows can force conservative capital allocation, constrain investment timing, and make earnings and dividend sustainability harder to predict across economic cycles.