Tyler Technologies (TYL) risk factors, FY2025 10-K

Other

1. 01Cyber-attacks, the use of artificial intelligence and security vulnerabilities can disrupt our business and harm our competitive position
2. 02Disclosure of personally identifiable information and/or other sensitive client data could result in liability and harm our reputation
3. 03We depend on third parties with whom we engage or collaborate for certain projects, deliverables, and/or financial transaction processes. If these parties fail to satisfy their obligations to us or we are unable to maintain these relationships, our operating results and business prospects could be adversely affected57% rewritten
4. 04Material portions of our business require the Internet infrastructure to be reliable
5. 05Certain of our solutions utilize open source software, and any failure to comply with the terms of one or more of these open source licenses could adversely affect our business
6. 06We run the risk of errors or defects with new products or enhancements to existing products
7. 07We must timely adapt to and implement technological changes to be remain competitive40% rewritten
8. 08We may be unable to protect our proprietary rights37% rewritten
9. 09Clients may elect to terminate our recurring contracts and manage operations internally
10. 10Selling products and services into the public sector poses unique challenges24% rewritten
11. 11Global health crises, such as a pandemic, may adversely affect our business and results of operations73% rewritten
12. 12A prolonged economic slowdown could harm our operations
13. 13The open bidding process creates uncertainty in predicting future contract awards
14. 14We face significant competition from other vendors and potential new entrants into our marketsNew
15. 15Fixed-price contracts may affect our profits
16. 16Changes in the insurance markets may affect our business

Risks Related to Our Indebtedness

1. 17Covenant restrictions under our indebtedness may limit our ability to operate our business and may adversely affect our financial condition, results of operations, and earnings per share
2. 18Variable rate indebtedness subjects the Company to interest rate risk, which could cause our debt service obligations to increase significantly
3. 19Fluctuation in inflation and interest rate could adversely affect our financial condition and results of operations
4. 20Fluctuations in quarterly revenues could adversely impact our operating results and stock price
5. 21Increases in our investment in research and development could decrease overall margins
6. 22Our stock price may be volatile31% rewritten
7. 23Our financial outlook may not be realized
8. 24We may experience difficulties in executing our acquisition strategy
9. 25Our failure to properly manage growth could adversely affect our business
10. 26Increases in labor costs, including wages, and an overall tightening of the U.S labor market, generally, or as the result of changing U.S. policy could adversely affect our business, results of operations or financial condition
11. 27We may be unable to hire, integrate, and retain qualified personnel
12. 28Compliance with changing regulation of corporate governance may result in additional expenses
13. 29Evolving legal and regulatory landscape over artificial intelligence technologies creates uncertainties
14. 30We do not foresee paying dividends on our common stock
15. 31Provisions in our certificate of incorporation, bylaws, and Delaware law could deter takeover attempts