Negative Free Cash FlowPersistent negative free cash flow (~-42.2M in FY2025) implies the company does not consistently convert earnings into distributable cash. Over months this pressures liquidity, forces external financing for capex or working capital, and limits reinvestment without improving margins or reducing capex.
Thin, Volatile MarginsVery thin operating and net margins (~2%) leave little buffer against cost inflation or revenue dips. Historical swings between profit and loss suggest earnings are not yet resilient, increasing the chance that small adverse trends will erode profitability and cash flow in the medium term.
Leverage Remains MeaningfulAlthough improved, a debt-to-equity ratio above 1x means interest and principal obligations remain a meaningful fixed cost. In a scenario of margin pressure or slower revenue growth, this leverage can constrain strategic choices, raise refinancing risk, and amplify downside to equity holders.