Agilysys (AGYS) risk factors, FY2026 10-K

Risks Relating to Our Business

1. 01Our business is impacted by changes in macroeconomic and global conditions30% rewritten
2. 02Our future success will depend on our ability to develop new solutions, product upgrades and services that achieve market acceptance
3. 03Extending the operation of our products and services to new and evolving platforms, operating systems and hardware products, such as mobile devices
4. 04We use AI in our platform and product offerings, and our success is dependent upon our ability to leverage data, develop competitive products, and manage related risksNew
5. 05We face extensive competition in the markets in which we operate, and our failure to compete effectively could result in price reductions and/or decreased demand for our products and services
6. 06Our long-term strategy is focused on continually investing in and growing our business and operations, both organically and through acquisitions84% rewritten
7. 07position. Our investments in research and development may result in products or services that generate less revenue than we anticipateNew
8. 08Our dependence on certain suppliers makes us vulnerable to the extent we rely on them29% rewritten
9. 09If we cannot retain and recruit qualified personnel due to rising labor costs, changes to immigration laws, or other reasons, our ability to operate and grow our business may be impaired and our financial performance may suffer
10. 10Our international operations have many associated risks
11. 11Natural disasters or other catastrophic events affecting our principal facilities could cripple our business
12. 12Our products and services may not function properly if we experience significant coding or configuration errors45% rewritten
13. 13Implementation of software solutions often involves a significant commitment of resources, and any failure to deliver as promised on a significant implementation could adversely affect our business
14. 14customers and their partners may not fully or timely perform the actions required to be performed by them to ensure successful implementation, including measures we recommend to safeguard against technical and business risks
15. 15We use open-source software in our solutions that may subject our solutions to general release or require us to re-engineer our solutions
16. 16Our business and operations are subject to a variety of regulatory requirements in the countries in which we operate or in which we offer our solutions, including, among other things, with respect to data privacy, AI, information security, trade compliance, tax, and labor matters
17. 17Cyber-attacks involving our systems and data could expose us to liability or harm our reputation and have a material adverse effect on our business29% rewritten
18. 18Actual or perceived security vulnerabilities in our software solutions may result in reduced sales or liabilities34% rewritten
19. 19For certain products and services, including our cloud hosting operations, we rely on third-party providers, which may create significant risk exposure for us
20. 20We may not be able to enforce or protect our intellectual property rights
21. 21We may be subject to claims of infringement of third-party intellectual property rights38% rewritten
22. 22If we fail to meet our customers’ performance expectations, our reputation may be harmed, and we may be exposed to legal liability

Risks Relating to the Industries We Serve

1. 23Our business depends to a significant degree on the hospitality industry, and instability and downturns in the hospitality industry could adversely affect our business and results of operations
2. 24Consolidation in the gaming and other hospitality industries could adversely affect our business
3. 25Insolvencies in the hospitality industry could adversely affect our business

Risks Relating to Our Finances and Capital Structure

1. 26Our stock has been volatile, and we expect that it will continue to be volatile54% rewritten
2. 27any major change in our board or management; andNew
3. 28If we acquire new businesses, we may not be able to successfully integrate them or attain the anticipated benefits
4. 29Our financial results may be significantly impacted by changes in our tax position
5. 30We are exposed to foreign currency exchange rate fluctuations that could negatively impact our financial results
6. 31We are exposed to tariff policy changes that could negatively impact our financial results
7. 32We may have exposure to greater than anticipated tax liabilities
8. 33We may incur goodwill and intangible asset impairment charges that adversely affect our operating results
9. 34We may encounter risks associated with maintaining large cash balances
10. 35Provisions of our corporate governance documents and Delaware Law could make an acquisition of the company more difficult and may prevent attempts by our stockholders to replace or remove our current management, even if beneficial to our stockholders
11. 36prohibition on the ability of stockholders to call special meetings; and
12. 37Accounting principle updates could have a negative impact on our financial condition or operating results
13. 38If we fail to maintain an effective system of internal controls, we may be unable to prevent or detect fraud or internal control deficiencies including material weaknesses, which could have a material adverse impact on our business