Negative Free Cash FlowNegative free cash flow driven by rising capex and a drop to negative operating cash flow weakens internal funding capacity, increasing reliance on external financing. Over months this can constrain growth initiatives, working capital and strategic optionality.
Earnings VolatilityMaterial swings in net income and inconsistent net margins hinder reliable forecasting and can raise cost-of-capital. Persistent earnings volatility complicates long-term planning, affects stakeholder confidence, and may limit investment or hiring decisions.
Rising Debt In 2025A substantial increase in total debt in 2025 raises leverage and interest expense, eroding prior balance-sheet advantages. Higher debt levels heighten refinancing and liquidity risk over the medium term and can restrict capital allocation flexibility.