Consensus Cloud Solutions (CCSI) risk factors, FY2025 10-K

Risks Related To Our Business

1. 01Our fax services constitute substantially all of our revenue and operating income
2. 02Developments in the healthcare industry could adversely affect our business
3. 03The market for our products and services is relatively new and rapidly evolving. If the market does not develop further, develops more slowly, or in a way that we do not expect, our business will be adversely affected
4. 04There are particular challenges in addressing the market for healthcare interoperability solutions. If we do not successfully address these challenges, our business will be adversely affected
5. 05Our industry is undergoing rapid technological changes, and we may not be able to keep up. If our products and services do not gain market acceptance, our operating results may be negatively affected
6. 06We use artificial intelligence in our business, and challenges with properly managing its use could result in harm to our brand, reputation, business or customers, and adversely affect our results of operationsNew
7. 07We intend to continue to develop new products and services and enhance existing products and services through acquisitions of and investments in other companies, technologies and personnel24% rewritten
8. 08Pandemics or global health crises, and related governmental responses could negatively affect our business, operations and financial performance
9. 09Our business could suffer if providers of broadband Internet access services block, impair or degrade our services
10. 10Our business is dependent on a small number of telecommunications carriers in each region and our inability to maintain agreements at attractive rates with such carriers may negatively impact our business
11. 11Our business could suffer if we cannot obtain or retain numbers, are prohibited from obtaining local numbers or are limited to distributing local numbers to only certain customers
12. 12The successful operation of our business depends upon the supply of critical business elements from other companies
13. 13We may be subject to increased rates for the telecommunications services we purchase from regulated carriers which could require us to either raise the retail prices of our offerings and lose customers or reduce our profit margins
14. 14Increased cost of email transmissions could have a material adverse effect on our business
15. 15Our sales cycle with enterprise and commercial customers can be long and unpredictable, and our sales efforts require considerable time and expense
16. 16A system failure, cybersecurity breach or other technological risk could delay or interrupt service to our customers, harm our reputation or subject us to significant liability39% rewritten
17. 17If our products and services fail to perform properly and if we fail to develop enhancements to resolve any defect or other problems, we could lose customers or become subject to service performance or warranty claims, and our market share could decline
18. 18The markets in which we operate are highly competitive, and our competitors may have greater resources to commit to growth, superior technologies, cheaper pricing or more effective marketing strategies. Also, we face significant competition for users, developers and distributors
19. 19Our growth will depend on our ability to develop, strengthen, and protect our brands, and these efforts may be costly and have varying degrees of success44% rewritten
20. 20value of these brands may be diminished, competitors may be able to dilute, harm, or take advantage of our brand recognition and reputation, and our ability to attract customers may be adversely affectedNew
21. 21Inadequate intellectual property protections could prevent us from defending our proprietary technology and intellectual property
22. 22We may be found to have infringed the intellectual property rights of others, which could expose us to substantial damages or restrict our operations
23. 23We may be subject to risks from international operations
24. 24We may be engaged in legal proceedings that could cause us to incur unforeseen expenses and could divert significant operational resources and our management’s time and attention
25. 25Our business is highly dependent on our billing systems
26. 26Increased numbers of credit and debit card declines in our business could lead to a decrease in our revenues or rate of revenue growth
27. 27If our business experiences excessive fraudulent activity or cannot meet evolving credit card company merchant standards, we could incur substantial costs and lose the right to accept credit cards for payment and our customer base could decrease significantly
28. 28Our success depends on our retention of our executive officers, senior management and our ability to hire and retain key personnel
29. 29Political instability and volatility in the economy may adversely affect segments of our customers, which may result in decreased usage and advertising levels, customer acquisition and customer retention rates and, in turn, could lead to a decrease in our revenues or rate of revenue growth

Risks Related To Regulation Including Taxation

1. 30Changes in regulations relating to health information communication protocols could affect our business
2. 31We face potential liability related to the privacy and security of health-related information we collect from, or on behalf of, our consumers and customers
3. 32Our services may become subject to burdensome regulation, which could increase our costs or restrict our service offerings45% rewritten
4. 33and net income and could materially adversely affect our business, prospects, financial condition, operating results and cash flowsNew
5. 34Changes in our tax rates, changes in tax treatment of companies engaged in e-commerce, the adoption of new U.S. or international tax legislation, or exposure to additional tax liabilities may adversely impact our financial results
6. 35Taxing authorities may successfully assert that we should have collected, or in the future should collect sales and use, telecommunications or similar taxes, and we could be subject to liability with respect to past or future tax, which could adversely affect our operating results
7. 36We are subject to a variety of new and existing laws and regulations which could subject us to claims, judgments, monetary liabilities and other remedies, and to limitations on our business practices
8. 37In certain instances, we may be subject to enhanced privacy obligations based on the type of information we store and process. While we believe we are in compliance with the relevant laws and regulations, we could be subject to enforcement actions, fines, forfeitures and other adverse actions35% rewritten
9. 38Our debt obligations could adversely affect our business and our ability to meet our obligations and pay dividends52% rewritten
10. 39Our failure to comply with those covenants could result in an event of default which, if not cured or waived, could result in the acceleration of substantially all of our debtNew
11. 40We may not be able to generate sufficient cash to service all of our indebtedness and may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful

Risks Related To Our Stock

1. 41The trading market for our common stock has existed for a relatively short time since the distribution. Our stock price may fluctuate significantly
2. 42We do not intend to pay dividends on our common stock
3. 43Certain provisions in our amended and restated certificate of incorporation and amended and restated bylaws, and of Delaware law, may prevent or delay an acquisition of Consensus, which could decrease the trading price of our common stock
4. 44These provisions may prevent or discourage attempts to remove and replace incumbent directors. In addition, these limitations may adversely affect the prevailing market price and market for our common stock if they are viewed as limiting the liquidity of our stock or discouraging takeover attempts in the future
5. 45If securities or industry analysts do not publish research or publish misleading or unfavorable research about our business, our stock price and trading volume could decline

Risks Related To the Separation

1. 46We and Ziff Davis continue to have some obligations under transaction agreements that were executed as part of the separation