Balance Sheet StrengthVery low leverage and a high equity ratio provide durable financial flexibility. This reduces refinancing and solvency risk during advertising slowdowns, supports investment in content/distribution, and enables capital allocation (dividends, buybacks, M&A) without stressing cash flow over the medium term.
Improved Cash GenerationConversion of earnings to cash improved materially, shifting free cash flow from negative to positive. Strong operating cash conversion provides a sustainable buffer versus ad-revenue cyclicality, funds reinvestment in digital distribution, and reduces dependence on external financing for 2-6 months plus.
High Gross Margin And Operating LeverageVery high gross margins indicate a scalable content distribution model with low incremental production costs. The improvement in EBIT margin shows the company can leverage fixed costs as revenues stabilize, supporting sustainable operating profitability if revenue trends hold.