Knowles (KN) risk factors, FY2025 10-K

Other

1. 01Cautionary Statement Concerning Forward-Looking Statements
2. 02In particular, information included under the sections entitled “Business,” “Risk Factors,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contain forward-looking statements

Risks Related To Our Business

1. 03We derive a significant portion of our revenues from a limited number of OEM customers and distributors. If revenues derived from these partners decrease or the timing of such revenues fluctuates, our operating results could be adversely affected34% rewritten
2. 04Implementation of our growth strategies may not be successful, which could adversely impact our results of operationsNew
3. 05If we are unsuccessful in implementing our acquisition strategy, integrating acquired companies, or managing divestitures and other significant transactions our business and financial results may be adversely effected62% rewritten
4. 06Our success depends on our ability to attract and retain key employees, and if we are unable to attract and retain such qualified employees, our business and our ability to execute our business strategies may be materially impaired
5. 07Our effective tax rate may fluctuate which will impact our future financial results
6. 08Our products are complex and could contain defects, which could result in material costs to us and harm our business, results of operations, and financial condition

Risks Related to Our Industry

1. 09Global markets for our products are highly competitive and subject to rapid technological change. If we are unable to develop new products and compete effectively in these markets, our financial condition and operating results could be materially adversely affected

Risks Related to Operating a Global Business

1. 10Deterioration of global economic conditions, an economic recession, periods of inflation, or economic uncertainty in key end-user markets may adversely affect customer orders as well as demand for our products
2. 11Our foreign operations and supply chain are each subject to various risks that could materially adversely impact our results of operations and financial condition
3. 12Global economic conditions and changes in U.S. and international trade policy could materially adversely impact our business, results of operations, and financial position
4. 13Changes to export restrictions and economic sanction laws may adversely affect our operating results
5. 14Fluctuations in commodity prices and foreign currency rates could have a material adverse effect on our operating results and financial condition
6. 15o a sustained weakening of the U.S. dollar for an extended period could have a material adverse impact on our operating results and financial position

Risks Related to Intellectual Property, Cybersecurity, and Technology

1. 16Our revenues and operating results could be materially adversely affected if we are unable to protect or obtain patent and other intellectual property rights or if intellectual property litigation is successful against us44% rewritten
2. 17Our business and operations could suffer in the event of security breaches, cybersecurity incident, other unauthorized disclosures, or network disruptions
3. 18Issues related to the use of artificial intelligence may present business, compliance, or reputational risksNew

Risks Related to Our Indebtedness

1. 19Our credit agreement requires us to comply with certain financial covenants and our failure to comply could have a material adverse effect on our business, financial condition, and results of operations
2. 20There are risks associated with our indebtedness, which could have a material adverse effect on our financial condition
3. 21o increasing our vulnerability to interest rate fluctuations to the extent a portion of our debt has variable interest rates

Risks Related to Our Corporate Governance and Common Stock

1. 22Our business could be negatively affected as a result of the actions of activist or hostile stockholders
2. 23Certain provisions in our certificate of incorporation, by-laws, and Delaware law may prevent or delay an acquisition of the Company, which could decrease the trading price of our common stock
3. 24o the ability of our directors, without a stockholder vote, to fill vacancies on our Board of Directors (including those resulting from an enlargement of the Board of Directors)
4. 25Our stock price has been and may continue to be volatile and may fluctuate significantly which may adversely impact investor confidence and increase the likelihood of securities class action litigation