Sba Communications (SBAC) risk factors, FY2025 10-K

Risks Related to Our Business

1. 01We depend on a relatively small number of customers for most of our revenue, and the loss or financial instability of any of our significant customers may materially decrease our revenue and adversely affect our financial condition46% rewritten
2. 02Recently, the U.S. wireless service provider market has reduced to three nationwide wireless service providers, AT&T Wireless, T-Mobile, and Verizon Wireless, and our dependence on these three wireless service providers for our financial and operational growth has been exacerbatedNew
3. 03The wireless industry in our international markets has come under competition in recent years which has, and may continue to, adversely affect our international site leasing activities in the near term
4. 04If our wireless service provider customers are unable to access sufficient capital, or unwilling based on the economic cost of such capital or other reasons, to invest in their infrastructure or spectrum, it could reduce our ability to meet our growth expectations22% rewritten
5. 05If our wireless service provider customers combine their operations to a significant degree, our future operating results could be adversely affected
6. 06Our variable rate indebtedness and refinancing obligations subject us to interest rate risk, which could cause our debt service obligations to increase significantly40% rewritten
7. 07We have a substantial level of indebtedness which may have an adverse effect on our business or limit our ability to take advantage of business, strategic or financing opportunities
8. 08Our business depends, in part, on the ability of customers to perform under their contractual and financial obligationsNew
9. 09Increasing competition in the tower industry may create pricing pressures or result in non-renewals that may materially and adversely affect us55% rewritten
10. 10A slowdown in demand for wireless services could materially and adversely affect our future growth and revenues
11. 11Increasing competition may negatively impact our ability to grow our communication site portfolio long-term
12. 12Our international operations are subject to economic, political, and other risks that could materially and adversely affect our revenues or financial position
13. 13Currency fluctuations may negatively affect our results of operations38% rewritten
14. 14Delays in the roll-out of new spectrum or deployment of new technologies could materially and adversely affect our future growth and revenues
15. 15New technologies or network architecture or changes in a customer’s business model may reduce demand for our wireless infrastructure or negatively impact our revenues45% rewritten
16. 16If we are unable to protect our rights to the land under our towers, it could adversely affect our business and operating results
17. 17We hold some of our towers through rights of use agreements, which are terminable in accordance with the terms of the respective agreements and provide us limited visibility regarding the relationship between the owner of the towers and the land owner21% rewritten
18. 18We may not be able to fully recognize the anticipated benefits of towers that we acquire
19. 19The documents governing our indebtedness contain restrictive covenants that could adversely affect our business by limiting our flexibility
20. 20Our dependence on our subsidiaries for cash flow may negatively affect our business
21. 21The loss of the services of key personnel or a significant number of our employees may negatively affect our business
22. 22Our business is subject to government regulations and changes in current or future regulations could harm our business
23. 23Information technology disruptions, including as a result of cybersecurity breaches, could compromise our information, which would cause our business and reputation to suffer
24. 24Data privacy and protection laws are evolving globally and present risks related to our handling of sensitive data that could result in regulatory penalties or litigation
25. 25Damage from natural disasters and other unforeseen events could adversely affect us
26. 26We could have liability under environmental laws that could have a material adverse effect on our business, financial condition, and results of operations
27. 27We could suffer adverse tax and other financial consequences if taxing authorities do not agree with our tax positions26% rewritten
28. 28Our issuance of equity securities and other associated transactions may trigger a future ownership change which may negatively impact our ability to utilize NOLs in the future
29. 29Our costs could increase and our revenues could decrease due to perceived health risks from RF energy

Risks Related to Our Status as a REIT

1. 30Remaining qualified as a REIT involves highly technical and complex provisions of the Code. Failure to remain qualified as a REIT would result in our inability to deduct dividends paid to our shareholders in computing our taxable income, thereby increasing our tax obligations and reducing our available cash
2. 31Complying with REIT requirements, including the 90% distribution requirement, may limit our flexibility or cause us to forgo otherwise attractive opportunities, including certain discretionary investments and potential financing alternatives
3. 32Covenants specified in our current and future debt instruments may limit our ability to make required REIT distributions
4. 33Our payment of cash distributions in the future is not guaranteed and the amount of any future cash distributions may fluctuate, which could adversely affect the value of our Class A common stock33% rewritten
5. 34Certain of our business activities may be subject to corporate level income tax and foreign taxes, which would reduce our cash flows, and would have potential deferred and contingent tax liabilities

Risks Related to Ownership of our Class A Common Stock

1. 35The REIT-related ownership and transfer restrictions may restrict or prevent our shareholders from engaging in certain transfers of our common stock
2. 36Our articles of incorporation, our bylaws and Florida law provide for anti-takeover provisions that could make it more difficult for a third party to acquire us