Sharp Recent Revenue DeclineA material revenue drop in 2025 sharply reduces scale and undermines operating leverage. Persistent revenue contraction can erode customer momentum, weaken cross-sell potential and make it harder to cover fixed costs, thus stressing margins and financing capacity over the medium term.
Rising LeverageLeverage increased substantially, reducing financial flexibility and increasing sensitivity to cash flow shocks. Higher debt levels constrain capital allocation, raise interest burden and elevate refinancing risk, making execution of acquisitions or investments more costly and riskier over the next several quarters.
Weakened Cash ConversionFree cash flow weakened and became volatile, impairing the company's ability to self-fund growth, service higher debt, or accelerate integrations. Lower cash conversion magnifies the impact of the revenue decline and higher leverage, reducing margin of safety for capital expenditures and acquisitions.