SentinelOne (S) FY2026 10-K Risk Factors: 7 New, 5 Dropped

What the changes say

SentinelOne faces new regulatory pressures under EU DORA and Data Act requirements.

What changed since the prior 10-K

New

NewRisks Related to Our Business and Industry
In addition, we experience seasonal fluctuations in our financial results as we typically receive a higher percentage of our annual orders from new customers, as well as renewal orders from existing customers, in our fourth fiscal quarter due to the annual budget approval process of many of our customers
Seasonality causes higher order volumes in our fourth fiscal quarter due to customer budget cycles, risking stock price drops if we miss expectations.
NewRisks Related to Our Business and Industry
Under certain circumstances, our employees may have access to our customers’ platforms and misuse of such access, whether actual or perceived, could result in negative press coverage and negatively affect our reputation, which could result in harm to our business, reputation, and operating results
Employee misuse of customer platforms or negative independent research reviews could harm our reputation and cause customer loss.
NewRisks Related to Our People
unsuccessful if we are unable to retain qualified personnel with international experience, language skills and cultural competencies in the geographic markets which we target
Inability to retain qualified international sales personnel or hire sufficient effective sales staff will adversely affect our business.
NewRisks Related to Our Intellectual Property
(including treble damages) that may be awarded in connection with any such current or future claims, and could have a material adverse effect on our business, operating results, and financial condition
Confidentiality and license agreements may not be enforceable in all jurisdictions, risking unauthorized use of our proprietary technology.
NewRisks Related to Legal and Regulatory Matters
We may also face civil claims including representative actions and other class action type litigation (where individuals have suffered harm), potentially amounting to significant compensation or damages liabilities, as well as associated costs, diversion of internal resources, and reputational harm
Cross-border data transfers rely on SCCs and DPF certifications that face legal challenges, while local data storage laws increase complexity.
NewRisks Related to Legal and Regulatory Matters
impairments on our marketing and personalization activities and may negatively impact our efforts to understand and acquire new users
EU regulations like DORA and the Data Act impose strict ICT risk management and cloud interoperability requirements on us and our financial clients.
NewRisks Related to Financial and Accounting Matters
effective tax rates, reduced cash flows and lower overall profitability of our operations. Our financial statements could fail to reflect adequate reserves to cover such a contingency
Audits in new or existing jurisdictions could assess unexpected tax liabilities, reducing cash flows and profitability.

Dropped

DroppedRisks Related to Our Business and Industry
and go-to-market strategies, which allow them to leverage their existing customer and distributor relationships to gain business in a manner that discourages potential customers from purchasing our platform
DroppedRisks Related to Our Business and Industry
We are investing in expanding our platform, including our cloud security products, and it is difficult to predict adoption and demand
DroppedRisks Related to Our Business and Industry
interrupt our customers’ computing environments. We also make frequent updates to our platform, which may fail or be deployed incorrectly resulting in temporary vulnerability, or a material defect or downtime in our customer environments
DroppedRisks Related to Legal and Regulatory Matters
Failure to comply with laws, regulations and industry standards regarding personal data or other information could adversely affect our business, operating results, and financial condition
Open AI applications and competitor partnering create rapid market conditions.
DroppedRisks Related to Legal and Regulatory Matters
Complying with laws and regulations related to privacy and data protection could result in additional costs and liabilities to us

Reworded

83% rewrittenRisks Related to Our Business and Industry
Defects, errors, or vulnerabilities in our platform, misuse of our platform, or risks of product liability claims would harm our reputation and adversely impact our business, operating results, and financial condition
Added product liability claims to the risks regarding platform defects, errors, and vulnerabilities.
Was: Defects, errors, or vulnerabilities in our platform, the failure of our platform to block malware or prevent a security breach, misuse of our platform, or risks of product liability claims would harm our reputation and adversely impact our business, operating results, and financial condition
78% rewrittenRisks Related to Our Business and Industry
If we are not able to maintain and enhance our brand and reputation, our business and operating results may be adversely affected
Expanded brand description to include cloud, identity, AI, and data security solutions alongside AI-powered positioning.
69% rewrittenRisks Related to Our Intellectual Property
Our proprietary rights may be difficult to enforce, which could enable others to copy or use aspects of our platform without compensating us
Refined wording regarding the difficulty of enforcing proprietary rights and preventing unauthorized platform copying.
69% rewrittenRisks Related to Legal and Regulatory Matters
We are subject to laws and regulations affecting our business, including those related to the privacy and data protection of the personal data or other information we collect, process or share. Our actual or perceived failure to comply with such laws or regulations could harm our business
Updated to state we collect personal data rather than just receive and store it.
61% rewrittenRisks Related to Legal and Regulatory Matters
We are subject to laws and regulations, including government export and import controls, sanctions controls and anti-corruption laws, that could impair our ability to compete in our markets and subject us to liability if we are not in full compliance with applicable laws
Clarified specific U.S. export controls under EAR and OFAC sanctions prohibiting certain cloud-based solutions and software exports.
Was: We are subject to laws and regulations, including government export and import controls, sanctions and anti-corruption laws, that could impair our ability to compete in our markets and subject us to liability if we are not in full compliance with applicable laws
55% rewrittenRisks Related to Financial and Accounting Matters
Our corporate structure and intercompany arrangements are subject to the tax laws of various jurisdictions, and we could be obligated to pay additional taxes, which would harm our operating results and financial condition
Adjusted tax risk language regarding international corporate structure and transfer pricing policies.
55% rewrittenRisks Related to Our Business and Industry
Existing and future acquisitions, strategic investments, partnerships or alliances could be difficult to identify and integrate, divert the attention of key management personnel, disrupt our business, dilute stockholder value and adversely affect our business, operating results, and financial condition
Added September 2025 acquisitions of Prompt for generative AI security and Observo for AI-ready data pipelines.
46% rewrittenRisks Related to Our Business and Industry
Our operating results may fluctuate significantly, which could make our future results difficult to predict and could cause our operating results to fall below expectations
Added specific mention of global macroeconomic conditions and geopolitical conflicts such as the conflict in Iran.
45% rewrittenRisks Related to Our Business and Industry
Key business metrics and other estimates are subject to inherent challenges in measurement and to change as our business evolves, and our business, operating results, and financial condition could be adversely affected by real or perceived inaccuracies in those metrics or any changes in metrics we disclose
39% rewrittenRisks Related to Our Business and Industry
A security incident against us, or our third-party vendors and service providers, whether actual, alleged, or perceived, would harm our reputation, create liability and regulatory exposure, and adversely impact our business, operating results, and financial condition
39% rewrittenRisks Related to Our Business and Industry
If our platform is not effectively interoperated within our customers’ IT infrastructure, deployments could be delayed or canceled, which would adversely impact our business, operating results, and financial condition
38% rewrittenRisks Related to Our Business and Industry
We face intense competition and could lose market share to our competitors, which would adversely affect our business, operating results, and financial condition
37% rewrittenRisks Related to Our Business and Industry
We may not be successful in our artificial intelligence initiatives, which could adversely affect our business, reputation, or financial results
37% rewrittenRisks Related to Financial and Accounting Matters
We could be subject to additional tax liabilities and United States federal and global income tax reform could adversely affect us
35% rewrittenRisks Related to Ownership of Our Class A Common Stock
Investors’ expectations of our performance relating to corporate sustainability may impose additional costs and expose us to new risks
Was: Investors’ expectations of our performance relating to environmental, social and governance factors may impose additional costs and expose us to new risks
34% rewrittenRisks Related to Ownership of Our Class A Common Stock
If industry or financial analysts do not publish research or reports about our business, or if they issue inaccurate or unfavorable research regarding our Class A common stock, our stock price could decline
Was: If industry or financial analysts do not publish research or reports about our business, or if they issue inaccurate or unfavorable research regarding our Class A common stock, our stock price and trading volume could decline
32% rewrittenRisks Related to Financial and Accounting Matters
We are exposed to fluctuations in currency exchange rates, which could negatively affect our business, operating results, and financial condition
29% rewrittenRisks Related to Our Business and Industry
We have a history of losses, anticipate increases in our operating expenses in the future, and may not achieve or sustain profitability. If we cannot achieve and sustain profitability, our business, operating results, and financial condition will be adversely affected
29% rewrittenRisks Related to Our Business and Industry
If we are unable to retain our customers, renew and expand our relationships with them, and add new customers, or our partners are unable to execute on their purchasing commitments, we may not be able to sustain revenue growth, and we may not achieve or maintain profitability in the future
28% rewrittenRisks Related to Our Business and Industry
Our business depends, in part, on sales to government organizations, and significant changes in the contracting or fiscal policies of such government organizations could adversely affect our business and operating results
25% rewrittenRisks Related to Our Business and Industry
Adverse global macroeconomic conditions or reduced information technology spending could adversely affect our business, operating results, and financial condition
24% rewrittenRisks Related to Our People
If we do not effectively integrate, train, manage, and retain sales personnel, and expand our sales and marketing capabilities, we may be unable to increase our customer base and increase sales to our existing customers
23% rewrittenRisks Related to Our Business and Industry
Disruptions or other business interruptions that affect the availability of our platform could adversely impact our customer relationships and overall business
22% rewrittenRisks Related to Our People
We rely on our management team and other key employees and will need additional personnel to grow our business, and the loss of one or more key employees or our inability to hire, integrate, train, manage, retain, and motivate qualified personnel, including members of our board of directors, could harm our business
22% rewrittenRisks Related to Ownership of Our Class A Common Stock
Sales of substantial amounts of our Class A common stock in the public markets, or the perception that they might occur, could cause the market price of our Class A common stock to decline
22% rewrittenRisks Related to Financial and Accounting Matters
We may require additional capital to fund our business and support our growth, and any inability to generate or obtain such capital may adversely affect our operating results and financial condition
21% rewrittenRisks Related to Our Business and Industry
We have experienced rapid growth, and if we do not effectively manage our future growth, our business, operating results, and financial condition may be adversely affected

All 60 risk factors

Headings as the filing states them, in filing order.

Risks Related to Our Business and Industry

01We have a limited operating history at our current scale, which makes it difficult to forecast our future results of operations
02We have a history of losses, anticipate increases in our operating expenses in the future, and may not achieve or sustain profitability. If we cannot achieve and sustain profitability, our business, operating results, and financial condition will be adversely affected29% rewritten
03We face intense competition and could lose market share to our competitors, which would adversely affect our business, operating results, and financial condition38% rewritten
04Our operating results may fluctuate significantly, which could make our future results difficult to predict and could cause our operating results to fall below expectations46% rewritten
05In addition, we experience seasonal fluctuations in our financial results as we typically receive a higher percentage of our annual orders from new customers, as well as renewal orders from existing customers, in our fourth fiscal quarter due to the annual budget approval process of many of our customersNew
06Adverse global macroeconomic conditions or reduced information technology spending could adversely affect our business, operating results, and financial condition25% rewritten
07It is difficult to predict customer adoption and demand for our platform, the size and growth rate of this market, the entry of competitive products and services or the success of existing competitive products and services
08We may not be successful in our artificial intelligence initiatives, which could adversely affect our business, reputation, or financial results37% rewritten
09A security incident against us, or our third-party vendors and service providers, whether actual, alleged, or perceived, would harm our reputation, create liability and regulatory exposure, and adversely impact our business, operating results, and financial condition39% rewritten
10Defects, errors, or vulnerabilities in our platform, misuse of our platform, or risks of product liability claims would harm our reputation and adversely impact our business, operating results, and financial condition83% rewritten
11Existing and future acquisitions, strategic investments, partnerships or alliances could be difficult to identify and integrate, divert the attention of key management personnel, disrupt our business, dilute stockholder value and adversely affect our business, operating results, and financial condition55% rewritten
12If we are unable to retain our customers, renew and expand our relationships with them, and add new customers, or our partners are unable to execute on their purchasing commitments, we may not be able to sustain revenue growth, and we may not achieve or maintain profitability in the future29% rewritten
13If our platform is not effectively interoperated within our customers’ IT infrastructure, deployments could be delayed or canceled, which would adversely impact our business, operating results, and financial condition39% rewritten
14Disruptions or other business interruptions that affect the availability of our platform could adversely impact our customer relationships and overall business23% rewritten
15We may not timely and cost-effectively scale and adapt our existing technology to meet our customers’ performance and other requirements
16If we do not accurately anticipate and promptly respond to changes in our customers’ technologies, business plans or security needs, our competitive position and prospects will be adversely impacted
17If we are not able to maintain and enhance our brand and reputation, our business and operating results may be adversely affected78% rewritten
18Under certain circumstances, our employees may have access to our customers’ platforms and misuse of such access, whether actual or perceived, could result in negative press coverage and negatively affect our reputation, which could result in harm to our business, reputation, and operating resultsNew
19If we are unable to maintain successful relationships with our channel partners and alliance partners, or if our channel partners or alliance partners fail to perform, our ability to market, sell and distribute our platform will be limited, and our business, operating results, and financial condition will be harmed
20Our business depends, in part, on sales to government organizations, and significant changes in the contracting or fiscal policies of such government organizations could adversely affect our business and operating results28% rewritten
21We have experienced rapid growth, and if we do not effectively manage our future growth, our business, operating results, and financial condition may be adversely affected21% rewritten
22Our sales cycles can be long and unpredictable, and our sales efforts require considerable time and expense
23The sales prices of our platform may decrease, or the mix of our sales may change, which may reduce our gross profits and adversely affect our business, operating results, and financial condition
24Because we recognize revenue from subscriptions to our platform over the term of the subscription, downturns or upturns in new business will not be immediately reflected in our operating results
25We provide service level commitments under some of our customer contracts. If we fail to meet these contractual commitments, we could be obligated to provide partial refunds or our customers could be entitled to terminate their contracts and our business would suffer
26Additionally, our platform may be used by our customers and other third parties who obtain access to our solutions for purposes other than for which our platform was intended
27Key business metrics and other estimates are subject to inherent challenges in measurement and to change as our business evolves, and our business, operating results, and financial condition could be adversely affected by real or perceived inaccuracies in those metrics or any changes in metrics we disclose45% rewritten

Risks Related to Our People

28We rely on our management team and other key employees and will need additional personnel to grow our business, and the loss of one or more key employees or our inability to hire, integrate, train, manage, retain, and motivate qualified personnel, including members of our board of directors, could harm our business22% rewritten
29If we do not effectively integrate, train, manage, and retain sales personnel, and expand our sales and marketing capabilities, we may be unable to increase our customer base and increase sales to our existing customers24% rewritten
30unsuccessful if we are unable to retain qualified personnel with international experience, language skills and cultural competencies in the geographic markets which we targetNew
31Any inability to maintain a high-quality customer support organization could lead to a lack of customer satisfaction, which could hurt our customer relationships and adversely affect our business, operating results, and financial condition
32We believe that our corporate culture has contributed to our success, and if we cannot maintain this culture as we grow, we could lose the innovation, creativity, and teamwork fostered by our culture, and our business may be harmed

Risks Related to Our Intellectual Property

33Our proprietary rights may be difficult to enforce, which could enable others to copy or use aspects of our platform without compensating us69% rewritten
34(including treble damages) that may be awarded in connection with any such current or future claims, and could have a material adverse effect on our business, operating results, and financial conditionNew
35Third parties have claimed and may claim that our platform infringes their intellectual property rights and this may create liability for us or otherwise adversely affect our business, operating results, and financial condition
36We license technology from third parties, and our inability to maintain those licenses could harm our business
37Some of our technology incorporates “open source” software, which could negatively affect our ability to sell our platform and subject us to possible litigation

Risks Related to Legal and Regulatory Matters

38We are subject to laws and regulations, including government export and import controls, sanctions controls and anti-corruption laws, that could impair our ability to compete in our markets and subject us to liability if we are not in full compliance with applicable laws61% rewritten
39We are subject to laws and regulations affecting our business, including those related to the privacy and data protection of the personal data or other information we collect, process or share. Our actual or perceived failure to comply with such laws or regulations could harm our business69% rewritten
40We may also face civil claims including representative actions and other class action type litigation (where individuals have suffered harm), potentially amounting to significant compensation or damages liabilities, as well as associated costs, diversion of internal resources, and reputational harmNew
41impairments on our marketing and personalization activities and may negatively impact our efforts to understand and acquire new usersNew
42We are currently in, and may in the future, become involved in litigation that may adversely affect us

Risks Related to Financial and Accounting Matters

43The requirements of being a public company, including maintaining adequate internal control over our financial and management systems, result in significant costs and may strain our resources, divert management’s attention, and affect our ability to attract and retain executive management and qualified board members
44We could be subject to additional tax liabilities and United States federal and global income tax reform could adversely affect us37% rewritten
45Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited
46Our corporate structure and intercompany arrangements are subject to the tax laws of various jurisdictions, and we could be obligated to pay additional taxes, which would harm our operating results and financial condition55% rewritten
47effective tax rates, reduced cash flows and lower overall profitability of our operations. Our financial statements could fail to reflect adequate reserves to cover such a contingencyNew
48If our estimates or judgments relating to our critical accounting policies prove to be incorrect or financial reporting standards or interpretations change, our operating results could be adversely affected
49We are exposed to fluctuations in currency exchange rates, which could negatively affect our business, operating results, and financial condition32% rewritten
50We may require additional capital to fund our business and support our growth, and any inability to generate or obtain such capital may adversely affect our operating results and financial condition22% rewritten

Risks Related to Ownership of Our Class A Common Stock

51The market price of our Class A common stock may be volatile, and you could lose all or part of your investment
52Sales of substantial amounts of our Class A common stock in the public markets, or the perception that they might occur, could cause the market price of our Class A common stock to decline22% rewritten
53The dual class structure of our common stock may adversely affect the trading market for our Class A common stock
54Investors’ expectations of our performance relating to corporate sustainability may impose additional costs and expose us to new risks35% rewritten
55If industry or financial analysts do not publish research or reports about our business, or if they issue inaccurate or unfavorable research regarding our Class A common stock, our stock price could decline34% rewritten
56We are currently subject to and can in the future be subject to securities class action litigation
57We do not intend to pay dividends in the foreseeable future. As a result, your ability to achieve a return on your investment will depend on appreciation in the price of our Class A common stock
58Provisions in our charter documents and under Delaware law could make an acquisition of us, which may be beneficial to our stockholders, more difficult and may limit attempts by our stockholders to replace or remove our current management
59Our restated certificate of incorporation contains exclusive forum provisions for certain claims, which may limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers, or employees
60Our stockholders will not be deemed to have waived our compliance with the federal securities laws and the regulations promulgated thereunder

Other SentinelOne 10-Ks

FY2025 10-K risk factors
58 risks
SentinelOne faces intense cybersecurity market competition and ongoing net losses, reporting $288.4 million in fiscal 2025. Headcount growth and recent acquisitions like PingSafe introduce integration and scaling challenges. The business relies heavily on AWS cloud hosting, channel partners, and subscription renewal stability.
Filed Mar 26, 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.