Jack Henry & Associates (JKHY) Risk Factor Changes

Changes in interest rates could increase our borrowing costs or result in decreased interest income.

The loss of key associates and difficulties in hiring and retaining associates could adversely affect our business.

proprietary.

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.

Any transactions we pursue subject us to operational, financial, and integration risks.

Our business may be adversely impacted by general U.S.

Compliance with data privacy and cybersecurity laws, regulations, and rules may adversely impact our expenses, development, and strategy.

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.

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 conseque…

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.

We operate in highly competitive and rapidly evolving markets and our business will be adversely affected if we fail to compete effectively.

Failures of third-party service providers we rely upon could lead to financial loss.

Failures associated with payment transactions could result in financial loss.

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.

the fact that a significant portion of our associates and contractors work remotely outside of Company-controlled facilities using networks and devices that are not physically controlled by the Company, potentially li…

Data security breaches, failures, or other incidents could damage our reputation and business.

Our growth may be affected if we are unable to find or complete suitable acquisitions.

Failure to comply or readily address compliance and regulatory rule changes made by payment card networks could adversely affect our business.

identify significant issues, or if we fail to meet supervisory remediation expectations, we could be subject to regulatory actions that could harm our client relationships and reputation.

engineering methods to disclose sensitive information to gain access to our data or that of our clients or their accountholders.

Our services and infrastructure are increasingly reliant on the internet.

Our failure to protect our intellectual property and proprietary rights may adversely affect our competitive position.

Our selective pursuit of strategic transactions may be limited by market conditions, which could impact our ability to complement our organic growth.

increased—clients may be less willing or able to pay the cost of our products and services, and we could face a reduction in demand from current and potential clients for our products and services, which could have a…

Failure to comply or readily address compliance and regulatory rule changes made by payment card networks could adversely affect our business.

Moreover, the legislative and regulatory landscape continues to evolve to include alternative payment types, including digital and cryptocurrencies.

us to reputational harm, regulatory action, or litigation, which may harm our financial condition and operating results.

successfully compete.

Like other financial institution service providers, we continually face third-party attempts to discover and exploit system weaknesses or to circumvent our security measures.

Our services and infrastructure are heavily reliant on the internet.