Autodesk (ADSK) risk factors: FY2026 10-K

1. Our strategy to develop and introduce new products and services exposes us to risks such as limited customer acceptance (both with new and existing customers), costs related to product defects, and large expenditures, each of which may result in no additional net revenue or decreased net revenue.
2. Existing and increased competition and rapidly evolving technological changes may reduce our revenue and profits.
3. Global economic and political conditions may further impact our industries, business, and financial results.
4. Our business could be adversely impacted by the costs and challenges associated with strategic acquisitions and investments.
5. We are dependent on international revenue and operations, exposing us to significant international regulatory, economic, intellectual property, collections, currency exchange rate, taxation, political, and other risks, which could adversely impact our financial results.
6. We may not be able to predict subscription renewal rates and their impact on our future revenue and operating results.
7. Our financial results, key metrics, and other operating metrics fluctuate within each quarter and from quarter to quarter, making our future revenue and financial results difficult to predict.
8. We derive a substantial portion of our net revenue from a small number of solutions, including our AutoCAD-based software products and collections, and if these offerings are not successful, our revenue would be adversely affected.
9. From time to time we realign or introduce new business and sales initiatives; if we fail to successfully execute and manage these initiatives, our results of operations could be negatively impacted.
10. We may not successfully execute or achieve the expected benefits of our restructuring plan and other measures we may take in the future, and our efforts may adversely affect our business.
11. Net revenue, billings, earnings, cash flow, or subscriptions shortfalls or volatility of the market generally may cause the market price of our stock to decline.
12. As a result of our strategy of partnering with other companies for product development, our product delivery schedules could be adversely affected if we experience difficulties with our product development partners.
13. We incorporate AI into our offerings, and challenges with properly managing its use could result in competitive harm, reputational harm, or liability, and adversely affect our results of operations.AI
14. The Audit Committee internal investigation has been time-consuming and expensive, has resulted in the filing of lawsuits, and may result in additional expense and/or litigation.

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1. Security breaches or incidents may compromise the integrity of our or our customers’ systems, solutions, offerings, services, applications, data, or intellectual property, harm our reputation, damage our competitiveness, create additional liability, and adversely impact our financial results.Cybersecurity
2. Our use *of third-party *open *source *software *could negatively affect *our ability *to sell subscriptions to access *our products *and *subject us to possible litigation and greater security risks.
3. We rely on third parties to provide us with a number of operational and technical services; third-party security incidents could result in the loss of our or our customers’ data, expose us to liability, harm our reputation, damage our competitiveness, and adversely impact our financial results.
4. Delays in service from third-party service providers could expose us to liability, harm our reputation, damage our competitiveness, and adversely impact our financial results.
5. We are investing in resources to update and improve our information technology systems to digitize Autodesk and support our customers. Should our investments not succeed, or if delays or other issues with new or existing information technology systems disrupt our operations, our business could be harmed.
6. Our software solutions are highly complex and may contain undetected errors, defects, or vulnerabilities, and are subject to service disruptions, degradations, outages or other performance problems, each of which could harm our business and financial performance.
7. If we do not maintain good relationships with the members of our distribution channel, or if our distribution channel suffers financial losses, becomes financially unstable or insolvent, or is not provided the right mix of incentives to sell our subscriptions, our ability to generate revenue will be adversely affected.
8. We rely on software from third parties, and a failure to properly manage our use of third-party software could result in increased costs or loss of revenue.
9. Our business could be adversely affected if we are unable to attract and retain key personnel.
10. We rely on third-party technologies and if we are unable to use or integrate these technologies, our solutions and service development may be delayed and our financial results negatively impacted.
11. Disruptions in licensing relationships and with third-party developers could adversely impact our business.

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1. Increasing regulatory focus on privacy, data protection, and cybersecurity issues, as well as new and expanding laws and regulations, and customer requirements, addressing AI, data localization and sovereignty, and the collection and processing of data and information, may impact our business and expose us to increased liability.rewordedAICybersecurity
2. We are subject to governmental export and import controls that could impair our ability to compete in international markets or subject us to liability if we violate the controls.
3. If we are not able to adequately protect our proprietary rights, our business could be harmed.
4. We may face intellectual property infringement claims that could be costly to defend and result in the loss of significant rights.
5. Contracting with government entities exposes us to additional risks inherent in the government procurement process.

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1. We are exposed to fluctuations in currency exchange rates that could negatively impact our financial results and cash flows.
2. Our debt service obligations may adversely affect our financial condition and cash flows from operations.
3. Changes in tax rules and regulations, and uncertainties in interpretation and application, could materially affect our tax obligations and effective tax rate.
4. If we were required to record an impairment charge related to the value of our long-lived assets or an additional valuation allowance against our deferred tax assets, our results of operations would be adversely affected.

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1. Our business may be significantly disrupted upon the occurrence of a catastrophic event.
2. We are subject to legal proceedings and regulatory inquiries, and we may be named in additional legal proceedings or become involved in regulatory inquiries in the future, all of which are costly, distracting to our core business, and could result in an unfavorable outcome or a material adverse effect on our business, financial condition, results of operations, cash flows, or the trading prices for our securities.
3. Changes in existing financial accounting standards or practices, or taxation rules or practices may adversely affect our results of operations.
4. We are required to evaluate our internal control over financial reporting under Section 404 of the Sarbanes-Oxley Act of 2002 and any adverse results from such evaluation could result in a loss of investor confidence in our financial reports and have an adverse effect on our stock price.
5. In preparing our financial statements we make certain assumptions, judgments, and estimates that affect amounts reported in our consolidated financial statements which, if not accurate, may significantly impact our financial results.

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