Net Income DeclineA decline in net income despite revenue growth points to margin pressure or rising operating costs. Continued profit erosion would limit internally generated funds for R&D and expansion, forcing tougher trade-offs between growth investments and cash preservation.
Free Cash Flow WeaknessFalling free cash flow reduces flexibility for dividends, buybacks, or discretionary R&D. If lower operating cash conversion and higher capex persist, liquidity pressure could constrain execution of strategic projects or require external financing, raising long-term risk.
EPS ContractionNegative EPS growth indicates earnings per share are declining even as revenue rises, implying margin deterioration, higher costs, or dilution. Persistent EPS contraction undermines shareholder returns and signals need for operational fixes to restore profitability trends.