Weak Cash Conversion And Negative Free Cash FlowEarnings have turned positive, but thin operating cash compared with income and persistent negative free cash flow imply cash generation hasn't stabilized. This limits organic funding for development, marketing, and console launches without external financing or partner funding, a durable operational risk.
Revenue Concentration And VolatilityRecent revenue gains are concentrated in one title (Le Mans Ultimate) while the loss of NASCAR authorization removed a material stream. Reliance on a small portfolio raises execution risk: underperformance or licensing changes can produce sharp revenue swings over multiple quarters.
Small Scale And Resource ConstraintsA very small headcount constrains in-house development, live-ops, QA and global marketing execution for multi-platform launches. Scaling to consoles and sustaining live services typically require larger teams or costly partnerships, making growth execution dependent on external capital or alliances.