Elevated And Rising LeverageMaterial rise in debt-to-equity to ~2.84x substantially reduces balance-sheet flexibility. Higher leverage increases interest and refinancing risk, constrains capital allocation for M&A or investment, and magnifies downside volatility if client spending or margins deteriorate.
Volatile Free Cash FlowSharp FCF swings — collapse to zero in 2024 then rebound — point to working-capital or capex timing risks. Volatility complicates debt servicing and dividend planning, increasing refinancing and liquidity pressure given elevated leverage and modest coverage ratios.
2025 Margin CompressionMargin deterioration in 2025 despite higher revenue suggests worsening cost mix, pricing pressure, or integration inefficiencies. Persistent margin compression would erode cash generation, hinder deleveraging, and reduce the benefit of top-line growth to long-term profitability.