Rising Total LiabilitiesAn increase in total liabilities, even with moderate leverage, elevates funding and covenant sensitivity. Continued liability growth could constrain capital allocation, increase interest exposure, and reduce room for strategic investments or M&A over the coming quarters if not managed carefully.
Operational Efficiency OpportunityDespite strong margins, management flagged scope for EBITDA improvement, implying residual inefficiencies in operations, merchandising or SG&A. Failure to realize these gains could cap long‑term margin expansion and limit leverage of revenue growth into higher free cash flow.
Dependence On Third‑Party PartnersHeavy reliance on licensees and external manufacturers shifts execution risk off‑balance sheet but creates durable exposure to partner execution, quality, and margin pressure. Long‑term growth depends on governance, partner diversification and control of supply chain risks.