Aci Worldwide (ACIW) risk factors, FY2025 10-K

Risks Related to Our Business and Operations

1. 01The markets in which we compete are rapidly changing and highly competitive, and we may not be able to compete effectively
2. 02If we experience business interruptions, cybersecurity incidents or failure of our information technology and communication systems, the availability of our products and services could be interrupted which could adversely affect our reputation, business and financial condition
3. 03If our security measures are compromised or we experience a cybersecurity incident or similar attack, or if our services are subject to attacks that degrade or deny the ability of users to access our products or services, our business may be harmed by disrupting delivery of services and damaging our reputation
4. 04We rely on third-party cloud infrastructure and related services to deliver and operate our platform and deliver our solutions, and any disruption, limitation, or change in these cloud services could adversely affect our business, results of operations and financial conditionNew
5. 05Our reliance on third parties could adversely affect our operations, compliance, security and reputationNew
6. 06If we engage in acquisitions, strategic partnerships or significant investments in new business, we will be exposed to risks which could materially adversely affect our business
7. 07Failure to successfully complete divestitures or other restructuring activities could negatively affect our operations
8. 08We may experience difficulties implementing our strategy, and the strategy could prove unsuccessful in growing our business
9. 09Failure to attract and retain senior management personnel and skilled technical employees could harm our ability to grow24% rewritten
10. 10Certain anti-takeover provisions contained in our charter and under Delaware law could hinder a takeover attempt

Risks Related to Our Customers

1. 11Certain payment funding methods expose us to the credit and/or operating risk of our customers
2. 12Our business could be materially detrimentally impacted by loss caused by theft or fraud
3. 13Potential customers may be reluctant to switch to a new vendor, which may adversely affect our growth

Risks Related to Our Intellectual Property

1. 14We may be unable to protect our intellectual property and technology
2. 15We may be subject to increasing litigation over our intellectual property rights
3. 16We are engaged in offshore software development activities, which may not be successful and which may put our intellectual property at risk

Risks Related to Our International Operations

1. 17There are a number of risks associated with our international operations that could have a material impact on our operations and financial condition
2. 18Macroeconomic and geopolitical conditions could adversely affect our business, results of operations and financial conditionNew

Risks Related to Our Products and Services

1. 19If customers do not adopt our new payment solution, ACI Connetic, as anticipated, our business, results of operations and financial condition could be adversely affectedNew
2. 20Global economic conditions could reduce the demand for our products and services or otherwise adversely impact our cash flows, operating results and financial condition
3. 21Our business may be negatively affected by domestic and global economic and credit conditions
4. 22If our products and services fail to comply with legislation, government regulations, and industry standards to which our customers are subject, it could result in a loss of customers and decreased revenue
5. 23Our software products may contain undetected errors or other defects, which could damage our reputation with customers, decrease profitability, and expose us to liability
6. 24The artificial intelligence technology incorporated into our products include new and evolving technologies that may present both legal and business risks48% rewritten
7. 25The use of AI by our workforce may present risks to our business

Risks Related to Legal, Regulatory, and Tax Matters

1. 26If we fail to comply with the complex regulations applicable to our payments business, we could be subject to liability or our revenues may be reduced
2. 27Our business could be harmed if we fail to comply with privacy and cybersecurity laws and regulations imposed on providers of services to financial institutions23% rewritten
3. 28data privacy, data protection and data localization may compel us to need to modify our systems, invest in new systems or alter our business practices or our policies on data governance and privacy. These actions could significantly increase our operational costsNew
4. 29If we fail to comply with the applicable requirements of the payment card networks and Nacha, they could seek to fine us, suspend us or terminate our registrations, which could adversely affect our business
5. 30We may face exposure to unknown tax liabilities, which could adversely affect our financial condition, cash flows and/or results of operations
6. 31Changes in tax laws and regulations could adversely affect our results of operations and cash flows from operations29% rewritten

Risks Related to Our Industry

1. 32Consolidations and failures in the financial services industry may adversely impact the number of customers and our revenues in the future
2. 33Our stock price may be volatile

Risks Related to Our Financial Performance

1. 34Our future profitability depends on demand for our products
2. 35Failure to obtain renewals of customer contracts or obtain such renewals on favorable terms could adversely affect our results of operations and financial condition
3. 36The delay or cancellation of a customer project or inaccurate project completion estimates may adversely affect our operating results and financial performance
4. 37Changes in card association and debit network fees or products could increase costs or otherwise limit our operations
5. 38Our balance sheet includes significant amounts of goodwill and intangible assets. The impairment of a significant portion of these assets could negatively affect our financial results
6. 39Management’s backlog estimate may not be accurate and may not generate the predicted revenues
7. 40Our revenue and earnings are highly cyclical, our quarterly results fluctuate significantly, and we have revenue-generating transactions concentrated in the final weeks of a quarter which may prevent accurate forecasting of our financial results and cause our stock price to decline

Risks Related to Financing

1. 41Our outstanding debt contains restrictions and other financial covenants that limit our flexibility in operating our business24% rewritten
2. 42Our existing levels of debt and debt service requirements may adversely affect our financial condition or operational flexibility and prevent us from fulfilling our obligations under our outstanding indebtedness
3. 43which would increase the risks described in these risk factors relating to indebtedness
4. 44Our business and operating results could be adversely affected by events outside of our control, including natural disasters, wars and outbreaks of disease or other adverse public health developments
5. 45If our revenues or mix of revenues are below anticipated levels or if our operating results are below analyst or investor expectations, the market price of our common stock could be adversely affected