Declining Revenue GrowthA sustained decline in revenue erodes scale economics and endangers long-term margin sustainability. Even with strong unit margins, shrinking sales can force lower fixed-cost absorption, limit market share expansion, and constrain R&D and commercial investments.
Weakening Free Cash Flow GenerationFalling free cash flow growth reduces internal funding for capex, product development and working capital. Lower cash conversion increases reliance on external financing for strategic initiatives and raises risk around sustaining investment in product cycles.
Small Scale And Execution RiskA small workforce and company scale can limit R&D throughput, geographic reach and commercial distribution versus larger competitors. This raises execution and concentration risk for winning large, multi-region contracts in satellite communications.