Negative Operating And Free Cash FlowOperating cash flow has been negative each reported year and deteriorated to roughly -2.5B in 2025, with free cash flow near -2.6B. Failure to convert accounting profits into cash forces reliance on external financing or working-capital fixes and creates structural funding risk for capex or growth.
Sharply Rising LeverageLeverage has increased markedly (debt-to-equity ~3.75x in 2025), raising interest and refinancing burdens. Higher leverage reduces financial flexibility, magnifies cyclical exposure and limits strategic optionality (M&A, R&D, capex) while creditors may impose tighter covenants over the medium term.
Material Margin CompressionGross margin fell materially (from ~64% to ~40%) and net margin compressed to ~5.6% by 2025, signaling weaker pricing power or rising costs. Sustained margin erosion undermines the company’s ability to translate revenue growth into durable cash profits and limits resilience to future cost shocks.