Higher Leverage After FinancingLeverage increased materially versus prior years, reducing the previously conservative balance sheet. Higher debt and lower equity limit financial flexibility for strategic deals or ad slowdowns, raise refinancing and covenant sensitivity, and make downside recovery harder.
Ad Pricing PressureRising impressions but falling ad pricing reveals a monetization disconnect. Until measurement, attribution and retailer dynamics normalize, scaling engagement may not translate into proportional revenue, constraining durable top‑line elasticity from user growth.
Rising Costs & Integration DragHigher infrastructure and GPU spending plus TV Scientific integration raise fixed costs and pressure margins. These strategic investments can lift long‑term ad performance, but they also require successful integration to offset near‑term margin dilution and sustain EBITDA improvements.