Elevated LeverageSignificant leverage increases interest burden and reduces financial flexibility to fund capex or weather demand shocks. Over months, high debt makes the company more sensitive to rate moves and constrains strategic options like M&A or aggressive network investment.
Negative Free Cash FlowPersistent negative free cash flow limits internal funding for growth, debt reduction, or shareholder returns. Even with solid operating cash generation, ongoing negative FCF requires either external financing or operational improvements to restore durable liquidity.
Modest Net Profit MarginA modest net margin implies non-operating costs or interest are eroding returns to shareholders. Over time this can limit retained earnings and the firm's ability to build reserves or self-fund strategic initiatives unless operating or financing structures improve.