Rising LeverageA rising debt-to-equity trend reduces financial flexibility and raises interest burden risk. Higher leverage can constrain strategic investments, increase refinancing risk in tighter credit markets, and amplify downturn impacts on earnings and cash flow over the medium term.
Free Cash Flow VolatilityVolatile free cash flow undermines budgeting and consistent investment or deleveraging plans. Even with recent recovery, swings in FCF create execution risk, may force precautionary liquidity measures, and complicate long-term forecasting and capital allocation decisions.
Profitability VolatilityFluctuating net margins indicate uneven cost control, pricing pressure, or project-level variability common in ad agencies. Margin unpredictability weakens earnings visibility and may limit the company’s ability to commit to multi-period investments or stable dividend/cash-return policies.