Declining Net IncomeA falling net income trend signals pressure below the operating line—potentially higher SG&A, finance costs, or non-operating charges—which can erode retained earnings and reduce capacity to reinvest. If persistent, it weakens profitability conversion despite healthy gross margins over the medium term.
Free Cash Flow VolatilityVolatile and declining FCF points to uneven cash conversion from operations or rising capex/working capital needs. Reduced free cash constrains dividend policy, debt servicing flexibility, and funding for network investments, making execution riskier across the next several quarters if trends persist.
Eroding Shareholders' EquityA year-over-year drop in equity may reflect losses, payouts, or balance-sheet adjustments that reduce financial cushion. Lower equity weakens solvency metrics and may limit capacity to take on growth investments or absorb shocks, raising medium-term financing and operational constraints risk.