Very Low Net Profit MarginA net margin of ~1.24% leaves minimal buffer against cost inflation, client churn, or pricing pressure. Structurally thin profitability constrains the firm's ability to fund growth, absorb shocks, and deliver shareholder returns without sustained margin recovery or significant scale benefits.
Declining Operating MarginsFalling EBIT/EBITDA margins point to rising operating costs or weakening pricing power. This reduces operating leverage and long-term scalability, making it harder to translate revenue growth into durable profit improvement absent cost control or higher-margin service mix.
Volatile Free Cash Flow GrowthVolatility in free cash flow growth adds uncertainty to capital allocation and investment planning. Even with good cash conversion now, inconsistent FCF trends complicate budgeting for R&D, sales expansion, or dividends and increases execution risk over a multi-quarter horizon.