Somnigroup International (SGI) risk factors, FY2025 10-K

Risks related to our Business and Economic Environment

1. 01Participants in the mattress and pillow industries compete primarily on price, quality, brand name recognition, product availability and product performance across a range of distribution channels
2. 02Loss of suppliers and disruptions in the supply of our raw materials and components has increased and may continue to increase our costs of sales and reduce our ability to compete effectively
3. 03Changes in economic conditions, including inflationary trends in the price of our input costs, such as raw materials, due to, among other things, current geopolitical events, have adversely affected our business and financial results and could continue to do so in the future22% rewritten
4. 04The Company may not realize the benefits it expects from the Mattress Firm Acquisition or acquisitions or other strategic transactions it may pursue in the futureNew

Risks related to operating our business

1. 05The performance of our business depends on our ability to implement strategic initiatives and actions taken to increase sales growth may not be effective
2. 06Our new product launches may not be successful due to development delays, failure of new products to achieve anticipated levels of market acceptance and significant costs associated with failed product introductions, which could adversely affect our revenues and profitability58% rewritten
3. 07We rely significantly on IT and we have experienced, and in the future could experience, cyber-based attacks which have and in the future could harm our ability to effectively operate our business35% rewritten
4. 08Cybersecurity events and breaches of our network or databases, or those of our third-party providers, have resulted and may in the future result in the risks discussed hereinNew
5. 09Deterioration in labor relations could disrupt our business operations and increase our costs, which could decrease our liquidity and profitability
6. 10We may face exposure to product liability claims and premises liability claims, which could reduce our liquidity and profitability and reduce consumer confidence in our products20% rewritten
7. 11The loss of the services of any members of our executive management team could impair our ability to execute our business strategy and as a result, reduce our sales and profitability

Regulatory, Legal and Financial Risks

1. 12We may be adversely affected by fluctuations in exchange rates, which could affect our results of operations, the costs of our products and our ability to sell our products in foreign markets22% rewritten
2. 13Our leverage affects how we manage our business and may limit our flexibility
3. 14We are subject to various regulatory requirements, including, but not limited to, trade, environmental, health and safety requirements, any violation of which may require costly expenditures and expose us to liability
4. 15Our pension plans are currently underfunded and we may be required to make cash payments to the plans, reducing our available cash
5. 16Challenges to our pricing or promotional allowance policies or practices could adversely affect our operations
6. 17Climate change and related environmental issues could have a material adverse impact on us

Risks Related to Ownership of Our Common Stock

1. 18There can be no assurance as to the declaration or amount of future dividends
2. 19Our share repurchase program is subject to suspension or termination at any time, and may not enhance long-term stockholder value21% rewritten
3. 20Delaware law and our certificate of incorporation and bylaws contain anti-takeover provisions, any of which could delay or discourage a merger, tender offer or assumption of control of the Company not approved by our Board of Directors that some stockholders may consider favorable