Modest ProfitabilityWhile profitable, margins and ROE are modest relative to many software services peers, limiting internal capital for aggressive reinvestment or larger shareholder returns. Persistent margin pressure would constrain scalability and reduce buffer for pricing competition.
Cash Flow VolatilityPrior-year negative cash flow shows FCF can be lumpy despite recent strong growth. Volatility in cash timing, common in project work, complicates planning, may force higher cash reserves, and can limit consistent reinvestment or support for long multi-quarter initiatives.
Project-Based Revenue ConcentrationA business model centered on project fees creates revenue lumpiness and higher client concentration risk versus subscription models. Limited recurring revenue reduces predictability, making long-term capacity planning and margin stability harder, especially during demand slowdowns.