Rising LeverageMaterial increase in leverage (debt-to-equity ~1.28x) reduces financial flexibility and raises fixed obligations. If margins or cash generation slip, higher debt amplifies downside risk, constrains reinvestment, and could force costly refinancing within a 2–6 month horizon if market conditions tighten.
Negative Free Cash FlowNegative free cash flow despite positive operating cash flow means investments exceed operating receipts. Weak cash conversion and negative FCF limit self‑funding capacity, increase reliance on external capital, and elevate execution risk for expansion plans over the medium term.
Inconsistent Operating ProfitabilityMixed profitability—negative TTM EBIT and modest EBITDA margin—signals earnings are not yet durable. Historical volatility and narrow operating margins reduce resilience to pricing pressure or market shocks, making long‑term planning and consistent returns to stakeholders more challenging.