Profitability DeteriorationRecent steep deterioration to large net losses and negative revenue growth undermines the company’s ability to compound shareholder value. Persistent operating losses can erode equity, pressure margins, and force difficult trade-offs between investment, cost cuts, and cash returns over the coming months.
Volatile Cash Flow ConversionWhile trailing cash flow turned positive, historic year-to-year swings highlight weak conversion consistency. Inconsistent free cash flow raises execution risk, makes forecasting difficult, and limits the reliability of internal funding for operations, legal liabilities, and strategic programs.
Ongoing Legal & Timing UncertaintyMaterial and uneven legal and indemnification expenses remain unresolved and unpredictable. Such variability can materially reduce the convertibility of adjusted EBITDA to retained cash and impair capital allocation decisions, creating a structural headwind until final resolutions occur.