Debt Spike Reintroduces Leverage RiskA sharp increase in total debt in 2026 raises refinancing, interest coverage, and covenant risks. Higher leverage can constrain investment, increase cash strain, and amplify downside in an earnings setback, weakening the improved capitalization unless debt is controlled.
Revenue And Earnings VolatilityHistoric swings—losses in 2023–2024 and revenue contractions in 2024–2025—signal inconsistent demand or execution. This volatility reduces forecast reliability, complicates margin sustainability, and raises the probability that recent gains may reverse without durable revenue drivers.
Inconsistent Cash Conversion HistoryWhile recent FCF is positive, a negative free cash flow year in 2023 shows cash conversion is not yet steadfast. Episodic cash shortfalls could strain liquidity during downturns, especially with the recent debt increase, and require stronger working capital controls to be durable.