Rising LeverageLeverage more than doubled to ~6.2x equity by 2025, materially increasing refinancing, interest-rate and solvency risk. High leverage reduces balance-sheet flexibility, magnifies earnings volatility from credit losses or margin erosion, and elevates the probability that additional external financing will be required.
Consistent Cash BurnMulti-year negative operating and free cash flow erode liquidity and force reliance on debt or equity issuance. Persistent cash outflows limit the firm's ability to self-fund growth or dividends, raise refinancing vulnerability amid tighter markets, and constrain strategic flexibility over the medium term.
Margin DeteriorationA sharp decline in net margin over several years signals weakening pricing power or rising costs. Lower margins reduce the buffer to absorb higher interest costs and credit losses, compress internal cash generation, and make reinvestment or deleveraging more difficult without structural changes to operations or pricing.