Spok Holdings (SPOK) risk factors, FY2025 10-K

Risks Related to our Business and Operations

1. 01Wireless service to our customers could be adversely impacted by network rationalization
2. 02We depend on highly skilled personnel, and, if we are unable to retain or hire qualified personnel, we may not be able to achieve our strategic objectives
3. 03Growth in our software revenue and bookings, and maintenance of our wireless revenue and subscriber base is dependent on the productivity of our sales organization
4. 04If we are unable to deliver effective customer support, our relationships with our existing customers and our ability to attract new customers could be harmed
5. 05We have investigated potential acquisitions and may be unable to identify an opportunity at favorable terms or have the ability to close on the financing necessary to consummate the transaction
6. 06We have investigated potential acquisitions and may be unable to successfully complete or integrate such acquisitions into our business, and may not achieve all or any of the operating synergies or anticipated benefits of those acquisitions
7. 07Economic conditions that are largely out of our control may adversely affect our financial condition and results of operations44% rewritten
8. 08revenue erosion for our wireless business and could cause delays in or the loss of software revenue or bookings, which impacts license, professional services, hardware and subscription revenues

Risks Related to our Products and Services

1. 09The rate of wireless subscriber and revenue erosion could exceed our ability to reduce wireless operating expenses in order to maintain overall positive operating cash flow from our wireless business
2. 10Technical problems and higher costs may affect our product development initiatives
3. 11Undetected defects, bugs, or security vulnerabilities in our products could adversely affect the market acceptance of new products, damage our reputation with current or prospective customers, and materially and adversely affect our operating costs
4. 12We are dependent on the United States healthcare provider industry for most of our revenue
5. 13We experience a long sales cycle for our software products
6. 14We may be unable to find vendors that are able to supply us with wireless paging equipment based on future demand
7. 15We may be unable to maintain successful relationships with our channel partners
8. 16We may experience material litigation claiming intellectual property infringement by us, and we may not be able to protect our rights in intellectual property that we own and develop

Risks Related to Technology

1. 17Our use of open source software, third-party software and other intellectual property may expose us to risks
2. 18System disruptions, data compromises and other cybersecurity threats to our computer networks, satellite control, telecommunications systems and other IT Systems, or to those of our service providers, could have a material adverse effect on our business
3. 19Cyberattacks, data breaches or other compromises to our or our critical third parties' IT Systems, data, products or services could have a material adverse effect on our business28% rewritten

Risks Related to our Financial Results

1. 20We may be unable to realize the benefits associated with our deferred income tax assets53% rewritten
2. 21If our long-lived assets or goodwill become impaired, we may be required to record significant impairment charges
3. 22Our estimates of market opportunity for our software solutions are subject to significant uncertainty, and, even if the markets in which we compete meet or exceed our size estimates, we could fail to increase our revenue or market share

Risks Related to Regulatory Matters

1. 23We are subject to data privacy and protection-related laws and regulation, and we may encounter issues with privacy and security of Personal Information
2. 24Our wireless products are regulated by the FCC and, to a lesser extent, state and local regulatory authorities. Changes in regulation could result in increased costs to us and our customers and other operational impacts
3. 25Certain of our software products are regulated by the FDA. The application of or changes in regulations could impact our ability to market new or revised software products to our customers