Global Payments (GPN) FY2025 10-K Risk Factors: 6 New, 3 Dropped

What the changes say

Worldpay integration and conversion dominate new risks, including simultaneous Issuer Solutions separation.
Enterprise merchants can redirect volume, while AI rules and sustainability expectations may raise compliance, cost, and reputation risks.
Allowance for credit losses rose to $50.2 million, up 109%, highlighting increased fraud-related exposure.
Tax disclosure adds OBBBA evaluation; Issuer Solutions, broad macro, and climate-specific sustainability risks were removed.

What changed since the prior 10-K

New

NewRisks Related to Our Business Model and Operations
We may be unable to integrate the business of Worldpay successfully or realize the anticipated benefits of the Worldpay Acquisition, which could adversely affect our business, financial condition, results of operations and cash flows
Integrating Worldpay may disrupt operations, customers, employees, systems, and technology, preventing expected revenue gains, cost savings, and other benefits.
NewRisks Related to Our Business Model and Operations
Any of these factors could affect our ability to maintain relationships with customers, suppliers, employees and other stakeholders or achieve the anticipated benefits of the Worldpay Acquisition, which could adversely affect our business, financial condition, results of operations and cash flows
Acquisition integrations and conversions may increase costs, distract management, reduce service levels, lose customers, or fail to deliver projected synergies.
NewRisks Related to Our Business Model and Operations
If our enterprise segment merchants direct significant transaction volume away from us to other providers, it could adversely affect our business, financial condition, results of operations and cash flows
Large enterprise merchants can redirect transaction volume to competing payment processors because their agreements are non-exclusive.
NewLegal, Regulatory Compliance and Tax Risks
future laws and regulations governing the development, use and deployment of AI technologies, as well as potentially related private litigation” for further information about the risks of the use and deployment of AI technologies
Changing AI laws, enforcement, and social expectations could require costly system, service, pricing, and compliance changes or damage reputation.
NewLegal, Regulatory Compliance and Tax Risks
The OBBBA and Pillar Two did not have a material effect on our financial statements for the year ended December 31, 2025, and we are continuing to evaluate the potential effect on future periods
OBBBA and Pillar Two effects remain under evaluation, while tax audits, estimates, and disagreements could increase tax expense.
NewRisks Related to General Economic Conditions
Investor and other stakeholder interest in our sustainability practices, and our disclosed performance and aspirations for these practices, may, from time to time, result in additional considerations or expectations and expose us to risks
Changing sustainability expectations, reporting standards, and stakeholder proposals could increase costs, create obligations, and cause negative publicity.

Dropped

DroppedRisks Related to Our Business Model and Operations
If we do not renew or renegotiate our agreements on favorable terms with our customers within the Issuer Solutions segment, our business will suffer. The timing of the conversions or deconversions of card portfolios could also affect the amount and timing of our revenues and expenses
DroppedRisks Related to General Economic Conditions
We are subject to economic and geopolitical risk, health and social events or conditions, the business cycles and credit risk of our customers and the overall level of consumer, business and government spending, which could adversely affect our business, financial condition, results of operations and cash flows
DroppedRisks Related to General Economic Conditions
Investor and other stakeholder scrutiny related to our sustainability practices, and our disclosed performance and aspirations for these practices, may increase costs and expose us to numerous risks

Reworded

83% rewrittenRisks Related to Our Business Model and Operations
Increases in card network fees may result in the loss of customers and/or a reduction in our earnings
Adds that unsuccessful dispositions or their effects could materially harm the business, financial condition, or results.
73% rewrittenLegal, Regulatory Compliance and Tax Risks
New or revised tax regulations, unfavorable resolution of tax contingencies or changes to enacted tax rates could adversely affect our tax expense
Adds the July 2025 OBBBA, including permanent tax extensions, international tax changes, and restored business tax treatment.
71% rewrittenRisks Related to Our Business Model and Operations
There may be a decline in the use of cards and other digital payments as a payment mechanism for consumers, or other adverse developments affecting the card industry in general
Streamlines the discussion while retaining risks from reduced digital-payment use, consumer credit constraints, and card-related fees.
Was: There may be a decline in the use of cards and other digital payments as a payment mechanism for consumers or other adverse developments with respect to the card industry in general
69% rewrittenRisks Related to Our Business Model and Operations
Our business may be affected by current and future laws and regulations governing the development, use and deployment of AI technologies, as well as potentially related private litigation
Changes AI use from early-stage to ongoing and adds explicit risks from biased datasets, flawed algorithms, and opaque models.
43% rewrittenRisks Related to Our Business Model and Operations
Our future growth depends, in part, on the continued expansion within the markets in which we already operate, the emergence of and our successful entry into new markets and the continued availability of alliance relationships as well as strategic acquisition and joint venture opportunities
Reframes growth around deepening existing markets and emerging opportunities, with less emphasis on market penetration and alliance availability.
Was: Our future growth depends in part on the continued expansion within markets in which we already operate, the emergence of and our entry into new markets and the continued availability of alliance relationships and strategic acquisition and joint venture opportunities
35% rewrittenRisks Related to Our Business Model and Operations
We incur chargeback losses when our merchants refuse or cannot reimburse us for chargebacks resolved in favor of their customers. Any increase in chargebacks not paid by our merchants could adversely affect our business, financial condition, results of operations and cash flows
Removes the concluding statement that significant future chargeback losses may occur.
30% rewrittenRisks Related to Our Business Model and Operations
Fraud by merchants or others and losses from overdrawn cardholder accounts could have an adverse effect on our business, financial condition, results of operations and cash flows
Updates the allowance for credit losses to $50.2 million from $24.0 million, a 109% increase, versus the prior year’s 30% increase.
25% rewrittenRisks Related to Our Business Model and Operations
Software and hardware defects, failures, undetected errors and development delays could affect our ability to deliver our services, damage customer relations, expose us to liability and have an adverse effect on our business, financial condition and results of operations
Adds potential loss of business, inability to mitigate defects, and delays implementing new technology, while omitting specific third-party vendor failures.
21% rewrittenLegal, Regulatory Compliance and Tax Risks
Our risk management policies and procedures may not be fully effective in mitigating our risk exposure in all market environments or against all types of risk
21% rewrittenRisks Related to Our Business Model and Operations
We depend on relationships with third parties. Our systems or our third-party providers' systems may fail, or we may be unable to renew or renegotiate agreements with key suppliers, which could interrupt our service, cause us to lose business, increase our costs and expose us to liability
20% rewrittenRisks Related to Our Capital Structure
Our balance sheet includes significant amounts of goodwill and other intangible assets. The impairment of a portion of these assets could adversely affect our business, financial condition and results of operations

All 34 risk factors

Headings as the filing states them, in filing order.

Financial Risks

01Intellectual Property Risks
24We are subject to risks associated with changes in interest rates or currency exchange rates and may not effectively hedge against these risks, which could adversely affect our business, financial condition, results of operations and cash flows
25A downgrade in the ratings of our debt could restrict our ability to access the debt capital markets and increase our interest costs
26Failure to maintain effective internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act could have a material adverse effect on our business
27We may not be able to successfully manage our intellectual property and may be subject to infringement claims

Risks Related to Our Business Model and Operations

02Any of the foregoing could adversely affect our business, financial condition and results of operation
03Software and hardware defects, failures, undetected errors and development delays could affect our ability to deliver our services, damage customer relations, expose us to liability and have an adverse effect on our business, financial condition and results of operations25% rewritten
04We depend on relationships with third parties. Our systems or our third-party providers' systems may fail, or we may be unable to renew or renegotiate agreements with key suppliers, which could interrupt our service, cause us to lose business, increase our costs and expose us to liability21% rewritten
05We may be unable to integrate the business of Worldpay successfully or realize the anticipated benefits of the Worldpay Acquisition, which could adversely affect our business, financial condition, results of operations and cash flowsNew
06Any of these factors could affect our ability to maintain relationships with customers, suppliers, employees and other stakeholders or achieve the anticipated benefits of the Worldpay Acquisition, which could adversely affect our business, financial condition, results of operations and cash flowsNew
07The payments technology industry is highly competitive and highly innovative, and some of our competitors have greater financial and operational resources than we do, which may give them an advantage with respect to the pricing of services offered to customers and the ability to develop new and disruptive technologies
08In order to remain competitive and to continue to increase our revenues and earnings, we must continually and quickly update our services, a process that could result in higher costs and the loss of revenues, earnings and customers if the new services do not perform as intended or are not accepted in the marketplace
09Our revenues from the provision of services to merchants that accept Visa and Mastercard, or any other network, are dependent upon our continued Visa and Mastercard registrations, financial institution sponsorship and, in some cases, continued membership in certain card networks
10Increased merchant, referral partner, ISO or payment facilitator attrition could cause our financial results to decline
11Our future growth depends, in part, on the continued expansion within the markets in which we already operate, the emergence of and our successful entry into new markets and the continued availability of alliance relationships as well as strategic acquisition and joint venture opportunities43% rewritten
12There may be a decline in the use of cards and other digital payments as a payment mechanism for consumers, or other adverse developments affecting the card industry in general71% rewritten
13We incur chargeback losses when our merchants refuse or cannot reimburse us for chargebacks resolved in favor of their customers. Any increase in chargebacks not paid by our merchants could adversely affect our business, financial condition, results of operations and cash flows35% rewritten
14Fraud by merchants or others and losses from overdrawn cardholder accounts could have an adverse effect on our business, financial condition, results of operations and cash flows30% rewritten
15If our enterprise segment merchants direct significant transaction volume away from us to other providers, it could adversely affect our business, financial condition, results of operations and cash flowsNew
16Increases in card network fees may result in the loss of customers and/or a reduction in our earnings83% rewritten
17From time to time, we may dispose of businesses that do not meet our strategic objectives, such as the Issuer Solutions divestiture
18We may not realize the anticipated growth benefits and cost savings from, or our business may be disrupted by, our business transformation and reorganization activities. Any of the foregoing could adversely affect our business, financial condition and results of operation
19Our business may be affected by current and future laws and regulations governing the development, use and deployment of AI technologies, as well as potentially related private litigation69% rewritten

Legal, Regulatory Compliance and Tax Risks

20future laws and regulations governing the development, use and deployment of AI technologies, as well as potentially related private litigation” for further information about the risks of the use and deployment of AI technologiesNew
21New or revised tax regulations, unfavorable resolution of tax contingencies or changes to enacted tax rates could adversely affect our tax expense73% rewritten
22The OBBBA and Pillar Two did not have a material effect on our financial statements for the year ended December 31, 2025, and we are continuing to evaluate the potential effect on future periodsNew
23Our risk management policies and procedures may not be fully effective in mitigating our risk exposure in all market environments or against all types of risk21% rewritten

Risks Related to Our Capital Structure

28Our substantial indebtedness could adversely affect us and limit our business flexibility
29We may not be able to raise additional funds to finance our future capital needs
30Our balance sheet includes significant amounts of goodwill and other intangible assets. The impairment of a portion of these assets could adversely affect our business, financial condition and results of operations20% rewritten
31We may not be able to, or we may decide not to, pay dividends or repurchase shares at a level anticipated by our shareholders, which could reduce shareholder returns

Risks Related to General Economic Conditions

32Investor and other stakeholder interest in our sustainability practices, and our disclosed performance and aspirations for these practices, may, from time to time, result in additional considerations or expectations and expose us to risksNew
33If we lose key personnel or are unable to attract and hire additional qualified personnel as we grow, our business could be adversely affected
34The costs and effects of pending and future litigation, investigations or similar matters, or adverse facts and developments related thereto, could materially affect our business, financial condition, results of operations and cash flows

Other Global Payments 10-Ks

FY2024 10-K risk factors
31 risks
Global Payments faces heavy competitive pressure in the rapidly evolving payments technology industry. Significant risks stem from software defects, third-party and card network dependencies, and rising card fee burdens. The company carries substantial variable-rate debt and large amounts of goodwill representing 75% of total assets.
Filed Feb 14, 2025

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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.