Slowing Revenue GrowthRevenue growth has decelerated to low-single-digits after earlier expansion, reducing the company's top-line optionality. For a school operator reliant on enrollment and program expansion, prolonged slowdown constrains future scale economies and limits potential margin or EPS expansion.
Moderate Cash Conversion & VolatilityFree cash flow fell ~17% recently and converts only ~63% of net income, while historical cash-flow volatility (including very weak 2020) reduces confidence in steady cash generation. This variability can limit reliable funding for dividends, faster deleveraging or growth projects.
Sizable Absolute Debt LoadDespite improving leverage ratios, the company retains a sizable absolute debt stock; operating cash flow covers a relatively small portion of total debt (under ~0.5x). That leaves refinancing and interest-coverage sensitivity if cash generation weakens or funding conditions tighten.