Net Income DeclineA decline in net income despite strong revenue growth suggests rising operating costs, non-recurring charges, or margin dilution. If persistent, this reduces retained earnings and could limit the company’s ability to convert revenue growth into sustained shareholder cash returns and reinvestment.
Rising LiabilitiesAlthough leverage is low, growing liabilities can signal increased payables, deferred obligations, or contingent exposures. Over time this may pressure working capital and liquidity, forcing higher financing needs or diverting cash from growth initiatives if not contained.
Concentrated Monetization & Competitive RiskDependence on in-app purchases, ads and subscriptions ties revenue to user engagement and ad-market cycles. In a crowded mobile app and gaming market, sustaining monetization requires ongoing product innovation and retention; loss of engagement or ad rate shifts could structurally hit revenues.