Excess Capacity And Margin PressureExcess capacity and runoff of low-complexity work are weighing on gross margins and putting pressure on adjusted EBITDA, reducing near-term profitability.
Execution And Sales RiskLengthening sales cycles, uncertainty about new deal sizes, and slower-than-expected project ramps for new products increase execution risk and could impede revenue momentum.
Risk Profile And Earnings DowngradeAnalyst classifies suitability as aggressive and trimmed the fiscal 2026 non-GAAP EPS forecast due to a weaker gross margin outlook, indicating higher volatility and downside to earnings.