Substantial Remaining DebtAlthough leverage metrics improved, a large absolute debt stock raises interest-cost sensitivity and refinancing risk. High debt limits financial flexibility for acquisitions, capex or buffer against revenue shocks, and can pressure cash prioritization over the medium term.
Material EPS ContractionA pronounced EPS decline indicates earnings per share weakness despite revenue growth. If persistent, this signals profit-quality issues, potential one-offs, higher interest or dilution, and it undermines shareholder returns and confidence in sustainable per-share earnings.
Decreasing Free Cash Flow TrendA downward trend in free cash flow, even while positive, reduces headroom for debt paydown, dividends and investment. If capex or working-capital needs rise, continued FCF erosion could constrain strategic options and weaken long-term financial resilience.