Recent Negative Free Cash Flow GrowthAlthough FCF roughly aligns with net income historically, a ~-10% decline in FCF growth signals weakening cash generation momentum. Variable operating cash conversion (only modestly above 1x in TTM) raises risk that cash will be less reliable to fund investments, dividends or deleveraging.
Margin NormalizationMargins have eased from the 2024 peak, with net margin sliding to ~18% TTM. This normalization reduces the earnings cushion and could reflect rising costs or pricing pressure. If persistent, it may constrain free cash flow and reduce financial flexibility over the medium term.
Absolute Debt Still MaterialEven with a much lower debt-to-equity ratio, management notes total debt is still material in absolute terms. That outstanding debt can limit strategic optionality, increase interest exposure, and become a constraint if revenue or cash flow weakens, requiring continued focus on repayment.