Negative Operating And Free Cash FlowPersistently negative operating and free cash flows undermine the company's ability to fund working capital, capital expenditures and debt service from operations. Over the medium term this raises reliance on external financing, pressures liquidity and limits capacity to invest in growth or return cash to shareholders.
Rising LeverageAn increasing debt-to-equity trend raises financial risk by increasing interest burden and covenant exposure. Higher leverage reduces strategic flexibility, makes the firm more sensitive to cash-flow volatility, and can constrain capital allocation decisions if earnings or cash conversion weaken further.
Volatile Revenue And Net MarginsRevenue and net margin volatility complicate forecasting and strategic planning, reducing predictability of free cash flow and returns. Structural variability may reflect end-market cyclicality or execution gaps, making sustained investment decisions and credit assessment riskier over the next several quarters.