Risk factors

Waterstone Financial faces new operational risks from artificial intelligence and payment processing, alongside ongoing deposit shifts to higher-cost certificates of deposit.

No new or removed risks were reported this year. Risk disclosures were updated with minor wording clarifications regarding short-term investments and grammatical fixes.

Wintrust added new risk disclosures around artificial intelligence adoption, Bank Secrecy Act compliance, and life insurance premium finance fraud.

The proposed American Water merger dominates, with risks spanning approval, integration, transaction costs, ownership, taxes, earnings, and management disruption.

Wave Life Sciences added risks covering clinical stage uncertainties, outpatient Medicare reimbursement, reliance on commercial partners, and expanding global data privacy rules.

Xenon faces new operational and commercial risks as it advances its lead candidate, azetukalner, into Phase 3 clinical trials for epilepsy, major depressive disorder, and bipolar depression.

Xperi implemented a restructuring plan in November 2025 cutting approximately 250 jobs globally.

DENTSPLY SIRONA added risks regarding the suspension of Byte aligners, tax law changes, and new ERP implementation costs.

AI adoption and a February 2026 workforce reduction introduce execution, talent, reputation, and output-quality risks.

Exzeo relies on a small number of P&C insurance customers concentrated heavily in Florida and coastal states. The company depends on the continuous development of its proprietary IaaS platform and its relationship with controlling shareholder HCI. Operations face extensive state-level insurance, licensing, data privacy, and cybersecurity regulations.

Zai Lab expanded its risk disclosures regarding artificial intelligence adoption, internal control over financial reporting, and mainland China operational compliance.

The risk profile is dominated by futures market leverage, daily margin calls, and regulatory changes impacting Geared Funds.