Rising Total DebtA notable increase in total debt during 2025 reduces prior balance-sheet optionality. Higher indebtedness raises interest and refinancing exposure, which can constrain strategic moves, capital returns, or cushion during downturns unless cash generation remains consistently strong.
Operating Margins Still DevelopingDespite very high gross margins, operating margins remain modest and are still developing. This suggests cost structure or overheads limit profit capture; sustaining improved earnings depends on durable SG&A discipline and operational scaling that is not yet proven.
Inconsistent Free Cash Flow ConversionFCF conversion has been uneven: 2024 showed zero FCF despite positive OCF, undermining predictability of cash available for debt paydown or reinvestment. Until conversion stabilizes, planning for durable debt reduction or sustained reinvestment is riskier.