Rising LeverageLeverage increased materially in FY2026, nearly doubling the debt burden versus the prior year. Higher leverage raises refinancing and interest-service risk, reduces financial flexibility for capex cycles, and amplifies exposure if cash generation weakens or interest rates rise over the next several quarters.
Negative Free Cash FlowTwo consecutive years of deeply negative free cash flow indicate heavy capex or working-capital outflows not covered by earnings. Persistent negative FCF forces reliance on external funding, increases refinancing needs already visible via higher debt, and limits the company’s ability to self-fund growth or buffer shocks.
Revenue And Gross-margin VolatilityUneven revenue trends and sharp swings in gross margins reveal exposure to fuel costs, dispatch patterns, or contract mix. Such volatility undermines durability of earnings and complicates forecasting, increasing the risk that recent margin improvements may prove cyclical rather than structural.