Negative And Inconsistent Cash GenerationNegative operating and free cash flow in 2025 and an inconsistent multi-year pattern weaken the firm's ability to self-fund growth, service obligations, or repurchase capital. Persistent cash deficits increase reliance on external financing and raise long-term execution and liquidity risk.
Rising Debt And Low Return On EquityAn uptick in leverage combined with a low ROE signals that new capital has not efficiently translated into shareholder returns. This dynamic constrains financial flexibility and raises concerns about capital allocation and earnings recovery potential in the medium term.
Volatile Revenue And Margin HistoryMaterial year-to-year swings in revenue and margins reduce predictability of earnings and complicate budgeting, capital allocation, and risk management. For investors and management, this volatility undermines confidence in sustainable cash generation over the next several quarters.