Profitability VolatilityHistorical swings from losses to profit indicate execution and demand sensitivity, making future earnings less predictable. Persistent volatility complicates planning, weakens confidence in sustainable margins, and raises the risk of setbacks if growth slows.
Declining FCF GrowthA meaningful decline in FCF growth reduces the pace at which cash can be redeployed for growth, debt reduction, or shareholder returns. If the trend continues, it could constrain strategic options and signal that recent cash strength may be less durable.
Sizable Absolute Debt ExposureEven with moderate leverage ratios, a large absolute debt load increases vulnerability to earnings reversals through interest and refinancing risk. Material debt obligations can limit capital allocation and raise downside risk during cyclical or execution challenges.