Weak Free Cash Flow ConversionPersistent negative free cash flow growth and poor conversion of net income into operating cash constrain internal funding for capex, product development, and debt reduction. Over several months this increases reliance on external financing and limits ability to sustainably fund growth or return capital.
Increasing Reliance On DebtA declining equity ratio signals rising leverage over time, which raises interest expense and refinancing vulnerability. Structurally, higher indebtedness narrows strategic flexibility, increases sensitivity to rate moves, and could pressure margins and investment choices if the trend continues.
Volatile Gross Profit MarginsMaterial volatility in gross margins and a recent TTM decline point to inconsistent cost control or pricing pressure. Over the medium term this undermines operating leverage, makes earnings less predictable, and requires structural improvements in procurement, pricing or product mix to restore margin resilience.