SBA Communications (SBAC) risk factors: FY2025 10-K

1. We depend on a relatively small number of customers for most of our revenue, and the loss or financial instability of any of our significant customers may materially decrease our revenue and adversely affect our financial condition.
2. The wireless industry in our international markets has come under competition in recent years which has, and may continue to, adversely affect our international site leasing activities in the near term.
3. If our wireless service provider customers are unable to access sufficient capital, or unwilling based on the economic cost of such capital or other reasons, to invest in their infrastructure or spectrum, it could reduce our ability to meet our growth expectations.
4. If our wireless service provider customers combine their operations to a significant degree, our future operating results could be adversely affected.
5. Our variable rate indebtedness and refinancing obligations subject us to interest rate risk, which could cause our debt service obligations to increase significantly.Interest rates
6. We have a substantial level of indebtedness which may have an adverse effect on our business or limit our ability to take advantage of business, strategic or financing opportunities.
7. Our business depends, in part, on the ability of customers to perform under their contractual and financial obligations.new
8. Increasing competition in the tower industry may create pricing pressures or result in non-renewals that may materially and adversely affect us.
9. A slowdown in demand for wireless services could materially and adversely affect our future growth and revenues.
10. Increasing competition may negatively impact our ability to grow our communication site portfolio long-term.
11. Our international operations are subject to economic, political, and other risks that could materially and adversely affect our revenues or financial position.
12. Currency fluctuations may negatively affect our results of operations.
13. Delays in the roll-out of new spectrum or deployment of new technologies could materially and adversely affect our future growth and revenues.
14. New technologies or network architecture or changes in a customer’s business model may reduce demand for our wireless infrastructure or negatively impact our revenues.
15. If we are unable to protect our rights to the land under our towers, it could adversely affect our business and operating results.
16. We hold some of our towers through rights of use agreements, which are terminable in accordance with the terms of the respective agreements and provide us limited visibility regarding the relationship between the owner of the towers and the land owner.
17. We may not be able to fully recognize the anticipated benefits of towers that we acquire.
18. The documents governing our indebtedness contain restrictive covenants that could adversely affect our business by limiting our flexibility.
19. Our dependence on our subsidiaries for cash flow may negatively affect our business.
20. The loss of the services of key personnel or a significant number of our employees may negatively affect our business.
21. Our business is subject to government regulations and changes in current or future regulations could harm our business.
22. Information technology disruptions, including as a result of cybersecurity breaches, could compromise our information, which would cause our business and reputation to suffer.Cybersecurity
23. Data privacy and protection laws are evolving globally and present risks related to our handling of sensitive data that could result in regulatory penalties or litigation.
24. Damage from natural disasters and other unforeseen events could adversely affect us.
25. We could have liability under environmental laws that could have a material adverse effect on our business, financial condition, and results of operations.
26. We could suffer adverse tax and other financial consequences if taxing authorities do not agree with our tax positions.
27. Our issuance of equity securities and other associated transactions may trigger a future ownership change which may negatively impact our ability to utilize NOLs in the future.
28. Our costs could increase and our revenues could decrease due to perceived health risks from RF energy.

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1. Remaining qualified as a REIT involves highly technical and complex provisions of the Code. Failure to remain qualified as a REIT would result in our inability to deduct dividends paid to our shareholders in computing our taxable income, thereby increasing our tax obligations and reducing our available cash.
2. Complying with REIT requirements, including the 90% distribution requirement, may limit our flexibility or cause us to forgo otherwise attractive opportunities, including certain discretionary investments and potential financing alternatives.
3. Covenants specified in our current and future debt instruments may limit our ability to make required REIT distributions.
4. Our payment of cash distributions in the future is not guaranteed and the amount of any future cash distributions may fluctuate, which could adversely affect the value of our Class A common stock.
5. Certain of our business activities may be subject to corporate level income tax and foreign taxes, which would reduce our cash flows, and would have potential deferred and contingent tax liabilities.

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1. The REIT-related ownership and transfer restrictions may restrict or prevent our shareholders from engaging in certain transfers of our common stock.
2. Our articles of incorporation, our bylaws and Florida law provide for anti-takeover provisions that could make it more difficult for a third party to acquire us.

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