Ventilator Census & Policy Compliance RiskNew NCD compliance criteria have raised ventilator patient turnover and temporary loss risk, reducing the predictability of a historically large rental revenue stream. Given ventilators remain a material portion of revenue, sustained census pressure could depress recurring revenue and utilization over several quarters.
Volatile Free Cash Flow ConversionOperating cash flow is strong, but free cash flow has been inconsistent due to working-capital and investment timing. Irregular FCF conversion constrains predictable funding for capex, acquisitions, debt paydown, or buybacks, making capital allocation and balance-sheet strengthening less certain in the medium term.
Rising SG&A & Potential Equity DilutionAbsolute SG&A growth from integration and headcount raises the ongoing fixed-cost base, pressuring bottom-line conversion. An expanded long‑term incentive reserve supports retention but increases potential share-based dilution, which can dilute EPS and constrain per-share returns if issuance accelerates.