Negative Free Cash FlowPersistent negative operating and free cash flow signals difficulty converting accounting profits into cash. Over several months this limits internal funding for growth, increases reliance on external financing, and heightens vulnerability to market slowdowns or tighter liquidity conditions.
Reliance On Liabilities / LeverageA balance sheet showing moderate debt usage and higher reliance on liabilities raises financial rigidity. Over the medium term, leverage increases interest and refinancing sensitivity, reducing flexibility to invest or weather trading-volume downturns common in capital-markets-linked businesses.
Operational Expense PressureWhile gross margins are strong, notable operating expenses compress net profit margins. If structural costs (staffing, tech, compliance) remain elevated, the firm may struggle to translate revenue growth into proportional net income gains without sustained efficiency improvements.