Cimpress (CMPR) risk factors, FY2025 10-K

Risks Related to Our Business and Operations

1. 01We manage our business for long-term results, and our quarterly and annual financial results often fluctuate, which has led, and may continue to lead, to volatility in our share price
2. 02If we do not promote, strengthen, and evolve our brands, we could lose customers and revenue and fail to acquire new customers
3. 03Our global operations and decentralized organizational structure place a significant strain on our management, employees, facilities, and other resources and subject us to additional ongoing risks
4. 04Our hedging activity could negatively impact our results of operations, cash flows, or leverage
5. 05Failure to protect our information systems and the confidential information of our customers, employees, and business partners against security breaches and thefts could damage our reputation and brands, subject us to litigation and enforcement actions, and substantially harm our business and results of operations
6. 06Inability to attract new and repeat customers in a cost-effective manner has harmed, and may in the future harm, our business and results of operations
7. 07Shifts in online search behavior, including the rise of generative AI tools and agentic search technologies, may negatively impact customer traffic and acquisition efficiency and conversion rates, which could materially harm our business, results of operations, and financial condition
8. 08Seasonal fluctuations in our business place a strain on our operations and resources
9. 09Our businesses face risks related to interruption of operations and lack of redundancy
10. 10We may not be successful in advancing the use of artificial intelligence, which involves significant risks, and competitors may develop new or better products using artificial intelligence that take market share, which could adversely affect our business, brand perception, or financial results
11. 11Failure to meet our customers' price or other expectations adversely affects our business and results of operations
12. 12Acquisitions and strategic investments may be disruptive to our business, may fail to achieve our goals, and can negatively impact our financial results
13. 13Developing and deploying our mass customization platform is costly and resource-intensive, and we may not realize all of the anticipated benefits of the platform
14. 14We are subject to safety, health, and environmental laws and regulations, which could result in liabilities, cost increases, or restrictions on our operations
15. 15The failure of our business partners to use legal and ethical business practices could negatively impact our business
16. 16If we are unable to protect our intellectual property rights, our reputation and brands could be damaged, and others may be able to use our technology, which could substantially harm our business and financial results
17. 17Intellectual property disputes and litigation are costly and could cause us to lose our exclusive rights, subject us to liability, or require us to stop some of our business activities
18. 18Our business is dependent on the Internet, and unfavorable changes in government regulation of the Internet, e-commerce, and email marketing could substantially harm our business and financial results
19. 19If we were required to screen the content that our customers incorporate into our products, our costs could significantly increase, which would harm our results of operations

Risks Related to Our Industry and Macroeconomic Conditions

1. 20Supply chain disruptions have impaired, and may in the future impair, our ability to source raw materials
2. 21We need to hire, retain, develop, and motivate talented personnel in key roles in order to be successful, and we face intense competition for talent
3. 22We face intense competition, and our competition may continue to increase
4. 23A major economic downturn or inflation could negatively affect our business and financial results
5. 24Meeting our ESG goals will be costly, and our ESG policies and positions could expose us to reputational harm

Risks Related to Our Corporate and Capital Structures

1. 25Our credit facility and the indentures that govern our notes restrict our current and future operations, particularly our ability to respond to changes or to take certain actions
2. 26A default under any of our debt documents could have a material adverse effect on our business
3. 27Our material indebtedness and interest expense could adversely affect our financial condition
4. 28Subject to the limits contained in our debt documents, we may be able to incur substantial additional debt from time to time, and if we do so, the risks related to our level of debt could intensify
5. 29Our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase significantly
6. 30Challenges by various tax authorities to our international structure could, if successful, increase our effective tax rate and adversely affect our earnings
7. 31Changes in tax laws, regulations and treaties have affected, and may in the future affect, our effective tax rate and our results of operations
8. 32Our intercompany arrangements may be challenged, which could result in higher taxes or penalties and an adverse effect on our earnings
9. 33The ownership of our ordinary shares is highly concentrated, which could cause or exacerbate volatility in our share price
10. 34Because of our corporate structure, our shareholders may find it difficult to enforce claims based on United States federal or state laws, including securities liabilities, against us or our management team
11. 35We may be treated as a passive foreign investment company for United States tax purposes, which may subject United States shareholders to adverse tax consequences
12. 36If a United States shareholder owns 10% or more of our ordinary shares, it may be subject to increased United States taxation under the controlled foreign corporation rules. Additionally, this may negatively impact the demand for our ordinary shares