Earnings VolatilityA sharp swing from loss to profit highlights operational sensitivity to project mix and margins. Such volatility can recur if large contracts shift or margins compress, making medium-term earnings predictability and planning more challenging for stakeholders and capital allocators.
Limited Asset BaseStagnant asset growth may constrain the firm's capacity to scale delivery, invest in platforms, or support larger multi-year contracts. Without purposeful asset or capability investment, the company could face structural limits to revenue diversification and winning bigger enterprise deals.
Project-Based Revenue CyclicalityA consultancy model with T&M and fixed-price projects tends to produce lumpy, timing-sensitive revenue and margin pressure from scope changes. Structurally, this reduces predictability of cashflows and increases dependency on utilization and contract cadence over the medium term.