High LeverageElevated debt-to-equity increases interest burden and reduces financial flexibility, a structural risk for a capital-intensive telecom. Higher leverage limits ability to fund network expansion or absorb demand shocks, and raises refinancing and covenant risks over the medium term.
Negative Free Cash FlowPersistent negative free cash flow constrains liquidity and may force external financing or cutbacks. Even with strong operating cash, sustained negative FCF implies capex/working capital outlays exceed receipts, which can impede deleveraging and limit strategic investments over a multi-month horizon.
Modest Net MarginA relatively modest net margin makes earnings vulnerable to rising costs or higher interest expense from leverage. For a services business with competitive pricing, this structural margin constraint reduces excess cash for growth, dividends or debt reduction unless operational efficiency improves.