Large Cash Reserves UnderusedA conservative cash-heavy balance sheet preserves liquidity but may depress returns if excess cash is idle. Over a multi-month horizon, under-deployment risks lower ROE and missed opportunities for capability investments, M&A, or scaling delivery infrastructure that would accelerate growth and margins.
EBITDA Margin DipA recent dip in EBITDA margin points to emerging operational pressure—from cost increases, utilization shifts, or lower-margin project mix. If the decline persists, it could erode the benefit of top-line growth, constrain free cash flow expansion, and force trade-offs between pricing, staffing, and investment.
Service-Fee Revenue ConcentrationA primarily service-fee business model delivers revenue but limits product-like scalability and recurring predictable streams. Over months this structure can expose margins and growth to client churn, project seasonality, and pricing competition, reducing revenue visibility and scalability vs. productized peers.