What the changes say
- Deluxe faces intensifying competition across merchant services and check printing, alongside secular declines in checks and business forms.
What changed since the prior 10-K
New
- New
that we are not currently aware of, or that we currently consider immaterial, which could also adversely impact our business and financial results
- NewSTRATEGIC RISKS
Additionally, our broad range of products and services presents challenges in ensuring that customers are aware of our full portfolio. Initiatives aimed at increasing awareness of our diverse offerings may result in higher marketing expenditures, which may not necessarily translate into increased revenue
A broad portfolio and expiring check supply contracts create marketing and customer retention challenges that could reduce revenue.
- NewSTRATEGIC RISKS
We operate in highly competitive markets, and we expect competitive pressures will continue to intensify
Intense competition from financial technology firms and other check printers threatens Merchant Services and B2B Payments segments.
- NewSTRATEGIC RISKS
Additionally, increased reports of check fraud and related publicity may further discourage the use of checks, as consumers and businesses seek alternative payment methods perceived as more secure. This could hasten the transition to digital and electronic payment solutions
Check fraud publicity and technological advancements accelerate the secular decline of checks and business forms.
- NewSTRATEGIC RISKS
Our cost management initiatives may not achieve their intended results and could adversely affect our business
Cost management initiatives require upfront investments and may cause operational disruptions or fail to deliver expected savings.
- NewOPERATIONAL RISKS
financial results. However, given the increasing threat landscape, our technologies, systems, and networks are likely to be targeted in future attacks, and we cannot guarantee that future incidents will not be material
Cyberattacks on systems could cause breaches, operational disruptions, and liability for card association breach costs.
- NewOPERATIONAL RISKS
Disruptions to our information technology systems or those of key third parties could adversely affect our business and reputation
Disruptions to internal or third-party IT systems and financial infrastructure can halt transactions and harm reputation.
- NewOPERATIONAL RISKS
The proliferation of AI and machine learning technologies exposes us to a range of risks that could negatively affect our reputation, the effectiveness of our products and services, and our financial results
AI adoption introduces risks of inaccurate outputs, data privacy issues, automation displacement, and changing regulations.
- NewOPERATIONAL RISKS
of AI, whether intentional or inadvertent, could lead to business interruptions, legal exposure, or damage to our reputation. Furthermore, the regulatory environment for AI is rapidly changing, with new laws and requirements emerging in various jurisdictions
- NewOPERATIONAL RISKS
Reliance on third-party service providers exposes us to operational, financial, and compliance risks
Reliance on third-party vendors for IT, cloud, and processing exposes the company to operational failures and higher costs.
- NewOPERATIONAL RISKS
In our Data Solutions segment, changes in laws, regulations, or industry practices could limit our access to vital data sources, impairing our ability to provide effective marketing solutions and potentially reducing our revenue
Changes in laws or data access could impair Data Solutions, while clearing fee increases raise operating costs.
- NewRisks related to customer payments and chargebacks could adversely affect our business and financial results
Dependence on card network registrations and sponsorships could adversely affect our business and financial results
Loss of Visa and Mastercard registrations or financial institution sponsorships would halt merchant processing revenue.
- NewFINANCIAL RISKS
Adverse economic conditions could negatively impact our business, financial position, and results of operations
- NewFINANCIAL RISKS
significant customers, prolonged declines in our stock price, or unexpected reductions in order volumes for our products and services
Dropped
- DroppedSTRATEGIC RISKS
We face intense competition, and we anticipate that this competition will continue to escalate
- DroppedSTRATEGIC RISKS
Our cost reduction initiatives may not be successful
- DroppedSTRATEGIC RISKS
Our inability to complete certain divestitures or the effects of divesting a business could have a material adverse effect on our business and financial results
Intense competition in the payments industry requiring scale and broad service offerings.
- DroppedOPERATIONAL RISKS
Disruptions to our website operations or information technology systems, or the inability to maintain our information technology platforms, could harm our reputation and negatively impact our business
- DroppedOPERATIONAL RISKS
We depend on third-party providers for various services, including critical information technology services, and any failure on their part could disrupt our business operations
- DroppedOPERATIONAL RISKS
raise paper prices, we may not be able to secure better pricing from alternative sources or pass these increases on to our customers
- DroppedOPERATIONAL RISKS
We face risks related to customer payments that could adversely affect our business and financial results
Compelled cost reduction initiatives requiring up-front expenditures amid secular declines.
- DroppedOPERATIONAL RISKS
Revenue generated from providing services to merchants that accept Visa and Mastercard is dependent on our ongoing registrations with these card networks, sponsorship by financial institutions, and, in some instances, maintaining membership in specific card networks
- DroppedFINANCIAL RISKS
Economic conditions can significantly influence business and consumer spending trends, which in turn may negatively impact the demand for our products and services
Inability to complete divestitures like web hosting, payroll, and HR services.
- DroppedFINANCIAL RISKS
Our capacity to make principal and interest payments on our debt depends on our future performance, which is influenced by general economic conditions and various financial, business, and other factors affecting our consolidated operations, many of which are beyond our control
Reworded
- 100% rewrittenSTRATEGIC RISKS
We may not successfully identify, complete, or integrate acquisitions, or realize their anticipated benefits
General reference to historical acquisitions like First American Payment Systems was removed, focusing strictly on risks of future integration challenges.
Was: We may be unable to successfully identify future acquisitions, integrate past and future acquisitions, or realize the anticipated benefits of the transactions
- 100% rewrittenFINANCIAL RISKS
Asset impairment charges have a negative impact on our results of operations
Goodwill asset impairment risk text was streamlined, removing specific reference to goodwill representing 50.3% of total assets as of December 31, 2024.
- 99% rewrittenSTRATEGIC RISKS
If we are unable to attract and retain customers in a cost-effective manner or effectively deliver a seamless multichannel customer experience, our business and results of operations could be negatively impacted
Added a specific focus on the difficulty of delivering a seamless multichannel customer experience alongside customer acquisition costs.
Was: If we are unable to attract and retain customers in a cost-effective manner or effectively manage a multichannel customer experience, our business and results of operations could be negatively impacted
- 98% rewrittenSTRATEGIC RISKS
If we do not adapt to technological changes in a timely and cost-effective manner, we could lose clients or face challenges in attracting new ones, which could limit our growth and negatively impact our business and results of operations
Added cryptocurrency and blockchain as emerging disruptive technologies that could render company offerings obsolete.
Was: If we do not adapt to changes in technology in a timely and cost-effective manner, we could lose clients or face difficulties in attracting new ones, thereby limiting our growth potential
- 98% rewrittenOPERATIONAL RISKS
The inability to attract, motivate, and retain key personnel and other qualified employees could adversely affect our business
Updated key personnel risk to specifically highlight remote and flexible work arrangements as added complexities for corporate culture.
Was: If we are unable to attract, motivate, and retain key personnel and other qualified employees, our business and results of operations could be negatively impacted
- 98% rewrittenLEGAL AND COMPLIANCE RISKS
Litigation and third-party claims can lead to expensive and distracting litigation, operational disruptions, and adverse financial impacts
Expanded litigation risk to note that the frequency and complexity of legal matters may increase as the business expands and diversifies.
Was: Third-party claims can lead to expensive and distracting litigation, and an unfavorable outcome could negatively impact our business, financial condition, and results of operations
- 98% rewrittenOPERATIONAL RISKS
Rising prices and reduced availability of essential materials and services may negatively impact our financial performance
Updated inflation risk by adding supply chain disruptions as a factor causing higher costs and reduced availability of raw materials.
Was: Rising prices and reduced availability of materials and services have negatively impacted, and may continue to negatively impact, our operating results
- 97% rewrittenSTRATEGIC RISKS
Our business relies on our strong and trusted brand, and any failure to maintain, protect, and promote our brand would negatively impact our business
Enhanced brand risk to explicitly mention the increasing costs associated with maintaining, protecting, and promoting the company brand.
Was: Our business relies on our strong and trusted brand, and any failure to maintain, protect, and enhance our brand would negatively impact our business
- 97% rewrittenRisks related to customer payments and chargebacks could adversely affect our business and financial results
Changes to payment card network rules could adversely affect our business and financial results
Was: We are subject to payment card network rules, and any changes to these rules could adversely impact our business and financial results
- 96% rewrittenFINANCIAL RISKS
Exposure to interest rate risk from our variable-rate indebtedness could adversely affect our results of operations
Was: Our variable-rate indebtedness exposes us to interest rate risk, which can adversely impact our results of operations
- 96% rewrittenLEGAL AND COMPLIANCE RISKS
Difficulties in protecting our intellectual property could adversely affect our competitive position and financial results
Was: We may face challenges in protecting our intellectual property rights, which could negatively impact our business and competitive position
- 95% rewrittenFINANCIAL RISKS
Our existing and future leverage could adversely affect our financial condition and results of operations
Was: Existing or future leverage may adversely affect our financial condition and results of operations
- 94% rewrittenLEGAL AND COMPLIANCE RISKS
Governmental regulation is continuously evolving and could adversely affect our business
Was: Governmental regulation is continuously evolving and could limit or harm our business
- 91% rewrittenSTRATEGIC RISKS
The use of checks and business forms is declining, and we may be unable to offset this decline with profitable revenue growth
- 87% rewrittenOPERATIONAL RISKS
Security breaches, computer malware, or other cyberattacks involving the confidential information we maintain could significantly damage our reputation, expose us to litigation and regulatory actions, and materially harm our business, financial condition, and results of operations
Was: Security breaches, computer malware, or other cyberattacks involving the confidential information we maintain could significantly damage our reputation, expose us to litigation and enforcement actions, and substantially harm our business and results of operations
- 81% rewrittenSTRATEGIC RISKS
If our long-term growth strategy does not succeed, our business, financial condition, and results of operations would be adversely impacted
Was: If our long-term growth strategy does not succeed, our business and financial results would be adversely impacted
All 30 risk factors
Headings as the filing states them, in filing order.
Other
- 01that we are not currently aware of, or that we currently consider immaterial, which could also adversely impact our business and financial resultsNew
STRATEGIC RISKS
- 02If our long-term growth strategy does not succeed, our business, financial condition, and results of operations would be adversely impacted81% rewritten
- 03If we are unable to attract and retain customers in a cost-effective manner or effectively deliver a seamless multichannel customer experience, our business and results of operations could be negatively impacted99% rewritten
- 04Additionally, our broad range of products and services presents challenges in ensuring that customers are aware of our full portfolio. Initiatives aimed at increasing awareness of our diverse offerings may result in higher marketing expenditures, which may not necessarily translate into increased revenueNew
- 05We operate in highly competitive markets, and we expect competitive pressures will continue to intensifyNew
- 06If we do not adapt to technological changes in a timely and cost-effective manner, we could lose clients or face challenges in attracting new ones, which could limit our growth and negatively impact our business and results of operations98% rewritten
- 07The use of checks and business forms is declining, and we may be unable to offset this decline with profitable revenue growth91% rewritten
- 08Additionally, increased reports of check fraud and related publicity may further discourage the use of checks, as consumers and businesses seek alternative payment methods perceived as more secure. This could hasten the transition to digital and electronic payment solutionsNew
- 09Our business relies on our strong and trusted brand, and any failure to maintain, protect, and promote our brand would negatively impact our business97% rewritten
- 10Our cost management initiatives may not achieve their intended results and could adversely affect our businessNew
- 11We may not successfully identify, complete, or integrate acquisitions, or realize their anticipated benefits100% rewritten
OPERATIONAL RISKS
- 12Security breaches, computer malware, or other cyberattacks involving the confidential information we maintain could significantly damage our reputation, expose us to litigation and regulatory actions, and materially harm our business, financial condition, and results of operations87% rewritten
- 13financial results. However, given the increasing threat landscape, our technologies, systems, and networks are likely to be targeted in future attacks, and we cannot guarantee that future incidents will not be materialNew
- 14Disruptions to our information technology systems or those of key third parties could adversely affect our business and reputationNew
- 15The proliferation of AI and machine learning technologies exposes us to a range of risks that could negatively affect our reputation, the effectiveness of our products and services, and our financial resultsNew
- 16of AI, whether intentional or inadvertent, could lead to business interruptions, legal exposure, or damage to our reputation. Furthermore, the regulatory environment for AI is rapidly changing, with new laws and requirements emerging in various jurisdictionsNew
- 17Reliance on third-party service providers exposes us to operational, financial, and compliance risksNew
- 18The inability to attract, motivate, and retain key personnel and other qualified employees could adversely affect our business98% rewritten
- 19Rising prices and reduced availability of essential materials and services may negatively impact our financial performance98% rewritten
- 20In our Data Solutions segment, changes in laws, regulations, or industry practices could limit our access to vital data sources, impairing our ability to provide effective marketing solutions and potentially reducing our revenueNew
Risks related to customer payments and chargebacks could adversely affect our business and financial results
- 21Changes to payment card network rules could adversely affect our business and financial results97% rewritten
- 22Dependence on card network registrations and sponsorships could adversely affect our business and financial resultsNew
LEGAL AND COMPLIANCE RISKS
- 23Governmental regulation is continuously evolving and could adversely affect our business94% rewritten
- 24Litigation and third-party claims can lead to expensive and distracting litigation, operational disruptions, and adverse financial impacts98% rewritten
- 25Difficulties in protecting our intellectual property could adversely affect our competitive position and financial results96% rewritten
FINANCIAL RISKS
- 26Adverse economic conditions could negatively impact our business, financial position, and results of operationsNew
- 27Asset impairment charges have a negative impact on our results of operations100% rewritten
- 28significant customers, prolonged declines in our stock price, or unexpected reductions in order volumes for our products and servicesNew
- 29Our existing and future leverage could adversely affect our financial condition and results of operations95% rewritten
- 30Exposure to interest rate risk from our variable-rate indebtedness could adversely affect our results of operations96% rewritten
Other Deluxe 10-Ks
- FY2024 10-K risk factors26 risks
Checks generated 33.1 percent of consolidated revenue in 2024 and fund organic growth efforts. Total debt stood at 1.52 billion dollars, with 597 million dollars exposed to variable rates. Goodwill accounted for 50.3 percent of total assets.
Filed Feb 21, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.