Elevated LeveragePersistently high debt and a prior negative equity position constrain financial flexibility. Heavy leverage increases refinancing and interest-rate risk, limits ability to invest in growth during downturns, and makes the business vulnerable if operating performance slips.
Inconsistent Cash GenerationAlthough cash generation improved in 2026, historical swings and prior negative free cash flow weaken resilience. Inconsistent cash flow makes predictable debt servicing and funding capex harder, and raises the likelihood of needing external financing during adverse operating periods.
Earnings VolatilityWide swings from sizable losses to recent profits show the business can be cyclical or execution-sensitive. This volatility impairs long-term planning, raises forecasting risk for cash flow and debt service, and means the recent recovery may not be durable without stable revenue and margins.