Compressed ProfitabilityMaterial margin compression and a TTM net loss weaken the firm's earnings power. Sustained low margins reduce the buffer against input cost swings, limit reinvestment capacity and impair returns to shareholders, making long-term recovery dependent on structural cost or pricing improvements.
Rising LeverageElevated and rising leverage meaningfully reduces financial flexibility. Higher interest and principal servicing demands constrain capital allocation, increase refinancing risk during downturns, and limit the company's ability to fund growth or absorb continued margin pressure without external financing.
Negative Free Cash Flow & Cash VolatilityPersistent negative free cash flow and a step-down in operating cash flow indicate weak cash conversion. This heightens dependency on financing, raises solvency risks if profitability lags, and undermines capacity to sustain dividends, capex or strategic investments over the medium term.