Persistent Negative Cash FlowMulti-year negative operating and free cash flow shows the business has not been self-funding despite reported profits. This ongoing cash burn raises financing risk, limits strategic flexibility, and can force reliance on external capital during downturns, a structural concern.
High LeverageA debt-to-equity ratio near 4x materially increases sensitivity to revenue shocks or rising interest costs. Elevated leverage constrains strategic options, raises refinancing risk, and can amplify earnings volatility, reducing the firm's ability to invest through economic cycles.
Margin Compression And Thin Net MarginDeclining margins versus earlier peaks point to competitive pressure or higher operating costs, limiting the firm's ability to translate revenue growth into durable profits. Persistent margin compression weakens cash generation and long-term return on invested capital.