Elevated LeverageDebt materially exceeding equity leaves the firm sensitive to interest rates, refinancing risk, and earnings volatility. High leverage reduces financial flexibility for capex or weathering downturns and increases the probability that below-the-line costs will push reported results negative during weaker cycles.
Profitability VolatilityThe swing from strong profits to a net loss shows earnings are vulnerable to non-operating items and below-the-line pressures (financing, other costs). This earnings instability undermines predictability of shareholder returns and complicates planning for investment, dividends, and debt servicing.
Negative Free Cash Flow (2025)The transition to negative free cash flow and a sharp drop in operating cash flow indicate renewed cash burn risk and weaker ability to self-fund capex or debt. If sustained, this pressure forces external financing, increasing leverage and constraining strategic initiatives over the medium term.