Jack Henry & Associates (JKHY) risk factors: FY2026 10-K

1. Data security breaches, failures, or other incidents could damage our reputation and business.Cybersecurity
2. Failure to maintain sufficient technological infrastructure or an operational failure in our outsourcing facilities could expose us to damage claims, increase regulatory scrutiny, and cause us to lose clients.
3. Failures associated with payment transactions could result in financial loss.
4. Failures of third-party service providers we rely upon could lead to financial loss.
5. We operate in highly competitive and rapidly evolving markets and our business will be adversely affected if we fail to compete effectively.reworded
6. Failure to achieve favorable renewals of service contracts could negatively affect our business.
7. If we fail to adapt our products and services to changes in technology and the markets we serve, we could lose existing clients and be unable to attract new business.
8. The increasing adoption of artificial intelligence (AI), machine learning (ML), and generative artificial intelligence into our products introduces significant and evolving risks that could lead to unintended consequences, result in reputational harm, and increased litigation.AI
9. Software defects or problems with installations and updates may harm our business and reputation and expose us to potential liability.
10. Expansion of services to non-traditional clients could expose us to new risks.

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1. The software and services we provide to our clients are subject to government regulation that could hinder the development of our business, increase costs, or impose constraints on the way we conduct our operations.
2. Compliance with data privacy and cybersecurity laws, regulations, and rules may adversely impact our expenses, development, and strategy.rewordedCybersecurity
3. Failure to comply or readily address compliance and regulatory rule changes made by payment card networks could adversely affect our business.

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1. Natural disasters, public health crises, wars, acts of terrorism, other armed conflict, and workforce shortages could adversely affect our results of operations.
2. Our business may be adversely impacted by general U.S. and global market and economic conditions or specific conditions in the financial services industry.
3. Consolidation and failures of financial institutions will continue to reduce the number of our clients and potential clients.

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1. Our selective pursuit of strategic transactions may be limited by market conditions, which could impact our ability to complement our organic growth.new
2. Any transactions we pursue subject us to operational, financial, and integration risks.new

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1. If others claim that we have infringed their intellectual property rights, we could be liable for significant damages or could be required to change our processes.
2. Our failure to protect our intellectual property and proprietary rights may adversely affect our competitive position.

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1. A material weakness in our internal controls could have a material adverse effect on us.
2. The loss of key associates and difficulties in hiring and retaining associates could adversely affect our business.
3. Unfavorable resolution of tax contingencies or unfavorable future tax law changes could adversely affect our tax expense.
4. The impairment of a significant portion of our goodwill and intangible assets would adversely affect our results of operations.
5. Changes in interest rates could increase our borrowing costs or result in decreased interest income.Interest rates

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Headings in the FY2025 10-K with no match this year.

1. Our growth may be affected if we are unable to find or complete suitable acquisitions.
2. Acquisitions subject us to risks and may be costly and difficult to integrate.