Deteriorating Free Cash FlowPersistently negative and worsening free cash flow signals that capital expenditures, working-capital demands, or other outflows are outpacing operating cash generation. Over months this elevates refinancing, liquidity, and funding risk and can force cuts to investment or require external financing despite low leverage.
Revenue StagnationFlat to slightly declining revenue indicates limited top-line momentum from enrollment, pricing, or program mix. Without revenue growth, the company’s ability to scale margins or fund reinvestment sustainably is constrained, making long-term earnings improvement harder absent structural changes.
Margin Compression And Falling ROEMaterial margin erosion over recent years reduces core profitability and indicates rising costs or pricing pressure. Combined with ROE cooling (about 4.0% in 2025 per balance-sheet notes), this reflects weakening returns on capital and the risk that the business will struggle to convert its equity base into sustainable profit growth.