Financial Performance - Fourth quarter 2025 revenue was $202.2 million, with a net income of $2.1 million or $0.17 per diluted share[1] - Full year 2025 revenue totaled $791.5 million, a decrease from $816.4 million in 2024[17] - The company reported a net loss of $9,660,000 for the year ended December 31, 2025, significantly improved from a net loss of $135,326,000 in 2024[21] - Total revenue for the year ended December 31, 2025, was $791,474,000, a decrease from $816,425,000 in 2024, reflecting a decline of about 3%[44] - The company reported a net loss of $9,660 for the year ended December 31, 2025, compared to a net loss of $135,326 in 2024[36] EBITDA and Cash Flow - The company achieved an adjusted EBITDA of $23 million for Q4 2025, with full year adjusted EBITDA guidance of $90 - $110 million, representing a 16% increase[2] - Total EBITDA for the year ended December 31, 2025, was $68,654,000, compared to a loss of $43,219,000 in 2024, showing a significant recovery in operational performance[25] - Free cash flow for the full year 2025 was $80 million, with a 65% free cash flow conversion rate[3] - Free cash flow before acquisitions for the year ended December 31, 2025, was $79,968,000, down from $105,073,000 in 2024, representing a decrease of approximately 24%[40] - The free cash flow yield as of February 18, 2026, was 11%, calculated using a market capitalization of $65 million[40] Orders and Backlog - Orders for the year reached $891 million, resulting in a book-to-bill ratio of 113%[2] - The backlog as of the end of 2025 was $312 million, the highest in 11 years and 46% greater than the previous year[1] - Total orders for the three months ended December 31, 2025, were $187,197,000, slightly down from $189,955,000 in the same period of 2024[27] - The book-to-bill ratio for total orders was 0.93 for the three months ended December 31, 2025, indicating a slight decline in demand compared to 0.94 in the previous year[27] Segment Performance - Drilling and Completions revenue increased by 8% to $127 million, driven by strong demand for drilling-related capital equipment[4] - Artificial Lift and Downhole revenue decreased by 4% to $75 million, with a book-to-bill ratio of 107% due to large orders for production-related equipment[5] - The operating income for the Drilling and Completions segment was $12,835,000 for 2025, down from $17,766,000 in 2024, reflecting a decrease in operating margin from 3.8% to 2.7%[25] - The operating margin for the Artificial Lift and Downhole segment was 13.1% for the year ended December 31, 2025, slightly down from 14.1% in 2024[25] - Revenue from the Drilling and Completions segment for the three months ended December 31, 2025, was $126,916,000, accounting for 62.8% of total revenue[48] Market Outlook - The company expects revenue and EBITDA growth in 2026, supported by strong backlog and market share gains, despite a relatively flat global market activity outlook[4] - Average global rig count for 2025 was 1,818, down from 1,948 in 2024, indicating a reduction of approximately 6.7%[44] - Revenue per rig increased to $435 in 2025 from $419 in 2024, marking an increase of about 3.8%[44] Other Financial Metrics - Net cash provided by operating activities for the year ended December 31, 2025, was $70,402,000, compared to $92,191,000 in 2024, a decrease of approximately 23.6%[21] - The net leverage ratio as of December 31, 2025, was 1.2, indicating the company's ability to meet its financial obligations[42] - The adjusted operating income for the year ended December 31, 2025, was $43,727, which is 5.5% of revenue[32] - The company incurred restructuring and other costs of $633 for the three months ended December 31, 2025[29] - The diluted EPS as reported for the three months ended December 31, 2025, was $0.17, while the adjusted diluted EPS was $0.41[29]

Revenue Sources and Financial Performance - Approximately 24% of total revenue for the year ended December 31, 2025, was derived from the Medicare program through CMS[139]. - Revenue from non-contracted third-party commercial payors accounted for approximately 7% of total revenue for the year ended December 31, 2025, leading to limited visibility on payment timelines[247]. - The company has a history of operating losses and may not achieve or sustain profitability in the future[248]. - The company incurred net losses of $44.6 million and $113.3 million for the years ended December 31, 2025 and 2024, respectively, with an accumulated deficit of $803.4 million as of December 31, 2025[249]. - The company’s revenue and operating results may fluctuate significantly from quarter to quarter, influenced by factors such as seasonal variations in prescription rates[245]. Regulatory Compliance and Risks - The company faces risks related to compliance with Medicare regulations, which could result in penalties or loss of reimbursement if not adhered to[140]. - The evolving regulatory landscape may increase the risk of questions regarding the appropriateness of CPT codes used for billing[150]. - The billing process for iRhythm Services is complex and highly regulated, requiring substantial time and resources, with potential penalties for non-compliance impacting business operations[156]. - The company must navigate extensive compliance requirements for its medical devices, with non-compliance potentially leading to significant enforcement actions and financial impacts[172]. - The company is facing increased scrutiny regarding compliance with healthcare laws, which could lead to legal expenses and management distraction[221]. Competition and Market Dynamics - The market for remote cardiac monitoring solutions is highly competitive, with significant competition from both large manufacturers and smaller regional service providers[153]. - The company competes with large medical device companies and tech firms entering the digital health space, which could impact market share[155]. - The competitive landscape for medical devices is dynamic, and failure to innovate could lead to obsolescence of the company's services and decline in revenue[195]. - The company emphasizes the need for continuous development of new product offerings and enhancements to its iRhythm Services to remain competitive[196]. Research and Development - The company is in various stages of research and development for new diagnostic solutions, but there is no assurance of successful commercialization[152]. - The company has faced challenges in maintaining adequate research and development resources, which are essential for competitive positioning in the market[196]. - The company is focused on proactive monitoring of undiagnosed arrhythmias, but there are risks that the clinical community may not adopt the necessary screening criteria[210]. - The company may pursue acquisitions of complementary companies or technologies, but there is no guarantee that these will result in commercially viable products or significant future revenues[211]. Supply Chain and Operational Risks - The company relies heavily on iRhythm Services for revenue, which is expected to account for substantially all revenue for the foreseeable future[152]. - The company relies on third-party vendors for critical components of the iRhythm ACM Systems, exposing it to risks related to supply chain disruptions[188]. - The company may experience production delays due to reliance on single suppliers for key components, which could impair its ability to meet demand for iRhythm Services[189]. - The company faces risks related to manufacturing an adequate supply of iRhythm ACM Systems to meet demand and maintain quality[250]. Cybersecurity and Data Protection - Cybersecurity risks, including data breaches and service interruptions, could compromise confidential data and lead to significant remediation costs and reputational damage[280]. - A recent cybersecurity incident involving a third-party vendor caused a temporary delay in billing, impacting cash collections[281]. - The evolving nature of cyber threats may require the company to allocate significant resources to enhance protective measures and address vulnerabilities[284]. - Compliance with various cybersecurity regulations is critical, as failure to meet these standards could lead to enforcement actions, product recalls, or operational disruptions[287]. Financial Management and Capital Structure - The company may require additional capital to support growth, which might not be available on acceptable terms, potentially leading to dilution for stockholders[251]. - The company is exposed to risks related to its increased debt, which may adversely affect its financial health and operational flexibility[305]. - Servicing the company's debt requires significant cash flow, which may not be sufficient in the future to meet its obligations[307]. - The conversion of the 2029 Notes may dilute existing stockholders' ownership interests and potentially depress stock prices[313]. International Expansion and Regulatory Compliance - International expansion efforts are focused on markets such as the Philippines, the EU, the UK, Switzerland, and Japan, but these efforts expose the company to various operational and regulatory risks[200]. - The company faces significant risks associated with compliance with multiple international regulations, including the UK MDR and EU AI Act, which could impact its operations and market access[207]. Legal and Intellectual Property Risks - The company faces risks related to intellectual property infringement claims, which could lead to significant costs and operational disruptions[266]. - Numerous patents issued to third parties may relate to the company's iRhythm ACM Systems, increasing the risk of infringement claims as competition in the remote cardiac monitoring market grows[267]. - If found to infringe on patents, the company could incur substantial damages, including potential treble damages for willful infringement, which could adversely affect financial conditions[271]. Future Outlook and Strategic Initiatives - The company is exploring opportunities to expand into the sleep apnea screening and diagnostics market, which requires significant investment and carries unique regulatory requirements[215]. - The company anticipates that new products developed from BioIS's technologies will require validation and regulatory approval, impacting commercialization timelines[214]. - The company does not expect meaningful revenue from sleep apnea opportunities in the near future, risking competitive threats if competitors act more quickly[215].

Financial Performance - Total management fees for the year ended December 31, 2025, were $426 million, an increase from $402 million in 2024 [26] - Total operating revenues for 2025 were $558 million, compared to $514 million in 2024, reflecting a growth of approximately 8.6% [26] - Net income for 2025 was $45 million, significantly up from $19 million in 2024, indicating a growth of approximately 136.8% [26] - Fee-related earnings for 2025 were $185 million, up from $166 million in 2024, representing an increase of about 11.4% [26] - Adjusted net income for 2025 was $166 million, compared to $141 million in 2024, marking a growth of approximately 17.7% [26] Assets Under Management (AUM) - As of December 31, 2025, the company had $90.9 billion in assets under management (AUM) [23] - Private Markets represent $64.1 billion of AUM, accounting for 71% of total AUM [29] - Absolute Return Strategies managed $26.8 billion of AUM, or 29% of total AUM [30] - Total sustainable investments AUM reached $31.2 billion as of December 31, 2025 [33] - The firm had $72.5 billion in fee-paying AUM (FPAUM) plus approximately $10.4 billion of contracted not yet fee-paying AUM (CNYFPAUM) as of December 31, 2025 [44] Client Base and Market Reach - The client base includes large institutional investors and a growing number of individual investors, highlighting the company's diverse market reach [24] - Existing clients contributed over 82% of total capital raised in 2025 [35] - Approximately 43% of total AUM as of December 31, 2025, came from clients based outside of the Americas, showcasing the company's global reach [155] - Individual investors accounted for about 5% of AUM as of December 31, 2025, with $1.5 billion of new capital raised from individuals over the past three years, indicating growth potential in this segment [156] Investment Strategies and Performance - The company aims to provide innovative alternative investment offerings and generate competitive risk-adjusted returns for its clients [24] - The company achieved an annualized return of 18.8% for co-investments/direct investments since inception in 2009, outperforming the S&P 500 by 4.3% [68] - The company has outperformed market benchmarks across all private market strategies on an inception-to-date basis as of September 30, 2025 [67] - The Net IRR for private equity primary fund investments is 12.5%, while secondaries investments have a Net IRR of 13.3% and co-investments/direct investments have a Net IRR of 16.2% [140] Operational and Compliance Aspects - The operational due diligence team conducts assessments including third-party background investigations, operational capabilities reviews, and legal structuring reviews [128] - The investment committee requires a majority vote for approval of prospective investments after comprehensive due diligence [127] - The company is subject to regulatory oversight in multiple jurisdictions, including the EU, U.K., Japan, and Hong Kong, which imposes various compliance obligations [195][197] - Compliance with data privacy and cybersecurity laws, such as the CCPA and EU GDPR, is critical, as failures could lead to significant fines and reputational harm [204][205] Growth and Strategic Initiatives - The company opened new offices in Toronto, Frankfurt, and Sydney to expand its global footprint and client base [80] - The Elevate strategy, launched in 2022, closed its first fund in 2024 with approximately $800 million of capital, focusing on small and emerging managers [85] - GCM Grosvenor is actively investing in new technologies to enhance its investment strategies, with a budget allocation of D million for R&D in the upcoming year [14] - The company is exploring strategic acquisitions to bolster its market position, with a focus on firms that complement its existing service offerings [14] Future Outlook - The company provided an optimistic outlook for the next fiscal year, projecting revenue growth of C% driven by new product launches and market expansion initiatives [14] - The company anticipates a continued increase in demand for its specialized funds, projecting a growth rate of H% in the next quarter [14]

Financial Performance - Con Edison reported 2025 net income for common stock of $2,023 million or $5.66 a share, an increase from $1,820 million or $5.26 a share in 2024[24] - Adjusted earnings for 2025 were $2,038 million or $5.70 a share, compared to $1,868 million or $5.40 a share in 2024[24] - Reported net income for common stock on a GAAP basis for 2025 was $2,023 million, an increase from $1,820 million in 2024 but a decrease from $2,519 million in 2023[33] - Adjusted earnings (Non-GAAP) for 2025 reached $2,038 million, up from $1,868 million in 2024 and $1,762 million in 2023[33] - Reported earnings per share on a GAAP basis for 2025 was $5.66, compared to $5.26 in 2024 and $7.25 in 2023[33] - Adjusted earnings per share (Non-GAAP) for 2025 was $5.70, an increase from $5.40 in 2024 and $5.07 in 2023[33] - CECONY's electric delivery revenues for full-service customers amounted to $7,908 million in 2025, an increase from $7,178 million in 2024, representing a growth of 10.2%[80] - The total gas sales revenue for CECONY in 2025 was $3,278 million, up from $2,834 million in 2024, representing a growth of 15.7%[92] - The total steam sales revenue for CECONY in 2025 was $703 million, up from $578 million in 2024, marking a growth of 21.6%[100] - O&R's total electric sales revenue in 2025 was $934 million, compared to $852 million in 2024, reflecting a growth of 9.6%[108] Capital Investments and Debt - The Utilities invested $4,946 million in 2025 to upgrade energy delivery systems, with planned investments of $6,533 million in 2026 and $8,571 million in 2030[24] - Con Edison plans to issue up to $3,200 million of long-term debt in 2026 and $3,000 million in 2027, with a total of approximately $9,900 million in long-term debt from 2028 to 2030[24] - The company anticipates issuing up to $1,100 million of common equity in 2026 and approximately $3,300 million from 2028 to 2030[24] - CECONY's capitalized costs for utility plant for distribution facilities were $25,214 million in 2025, up from $23,770 million in 2024, reflecting a year-over-year increase of approximately 6.1%[75] - Total capital expenditures for Con Edison in 2025 were $4,996 million, an increase from $4,728 million in 2024[127] - Total capital requirements for Con Edison are projected to be $9,223 million in 2030, reflecting a significant increase from $6,845 million in 2026[131] - CECONY projects $72 billion in capital expenditures needed between 2025 and 2034 to support its decarbonization strategy[149] Operational Performance - The company reported a significant increase in electric sales and deliveries, with a peak demand of 22 million units in the last quarter[36] - Gas sales and deliveries also saw a rise, achieving a peak demand of 27 million units, indicating strong market performance[36] - The company is focusing on expanding its electric and gas facilities to enhance operational capacity and reliability[36] - CECONY delivered a total of 53,798 million kWh of electricity in 2025, representing an increase from 52,427 million kWh in 2024, which is a growth of 2.6%[80] - CECONY's electric peak demand reached 12,530 MW in 2025, with a forecasted increase to 12,690 MW in 2026, indicating an annual growth rate of approximately 1.3%[81] - CECONY's total gas delivered to customers in 2025 was 172,977 MDt, an increase of 16.5% from 148,983 MDt in 2024[92] - O&R's total electric energy delivered to full-service customers in 2025 was 3,541 million kWh, an increase from 3,212 million kWh in 2024[108] - Total gas delivered to O&R customers in 2025 was 25,488 MDt, a 22.5% increase from 20,851 MDt in 2024[113] Sustainability and Environmental Initiatives - The company is focused on a clean energy future, aligning its investments and strategies with sustainability goals[20] - CECONY's sustainability strategy aims to reduce direct and indirect greenhouse gas emissions and enhance water use efficiency[186] - CECONY's direct GHG emissions for 2025 are estimated at 2.7 million metric tons, reflecting a more than 55% decrease from the 2005 baseline[178][180] - CECONY and O&R are required to purchase offshore wind renewable energy credits as part of New York's Clean Energy Goals[150] - CECONY's electric energy efficiency programs budget for 2020-2025 is $688 million, with a target to reduce electric use by 3% annually[153] - For 2026-2030, CECONY's energy efficiency and building electrification programs have an aggregate budget of $2,138 million, averaging $300 million annually for electric energy efficiency[154] Regulatory and Compliance - The NYSPSC regulates the Utilities, setting the terms of service and rates charged for providing service in New York[51] - Regulatory compliance remains a priority, with ongoing adjustments to meet federal and state energy regulations[36] - The NYISO requires that entities supplying electricity in New York State maintain generating capacity equal to peak demand plus applicable reserve margins[70] - CECONY is required to comply with the EPA's Transport Rule, which mandates further reductions in air emissions and requires the purchase of emissions allowances[219] - The revised Transport Rule has reduced the number of allowances allocated to CECONY, necessitating additional purchases to offset the decreased allocation[219] Customer Engagement and Experience - Con Edison emphasizes a commitment to safety, operational excellence, and enhancing customer experience as part of its mission[20] - A new strategy for customer engagement is being implemented to enhance user experience and satisfaction[36] - The Utilities' rate plans are designed to cover the cost of service, ensuring a stable revenue stream for the company[21] Risk Management - Forward-looking statements indicate that actual results may differ materially due to various factors, highlighting the importance of risk management[31]

Revenue and Sales Performance - Revenue for Q4 2025 was $21.3 million, down from $23.2 million in Q4 2024, with gold ounces sold decreasing to 5,477 ounces at an average realized price of $3,887 per ounce compared to 9,053 ounces at $2,560 per ounce in the prior year [707][709]. - For the year ended December 31, 2025, revenue rose to $95.2 million from $50.3 million in 2024, with gold sales increasing to 28,196 ounces at an average realized price of $3,368 per ounce [707][712]. - Revenue for the year ended December 31, 2025, was $95.2 million, an increase of 89% from $50.3 million in the prior year [788]. - Gold ounces sold during the year totaled 28,196 ounces at an average realized gold price of $3,368 per ounce, compared to 21,527 ounces at $2,332 per ounce in 2024 [788]. - The company reported gold sold of 28,196 ounces in 2025, an increase from 21,527 ounces in 2024, reflecting improved operational performance [846]. Profit and Loss - Gross profit increased to $4.7 million in Q4 2025 from $1.8 million in Q4 2024, attributed to higher gold prices and improved performance at Granite Creek [707][709]. - Net loss for Q4 2025 was $85.6 million, significantly higher than the $17.7 million loss in Q4 2024, primarily due to non-cash fair value revaluations and a write-down of $26.2 million related to the Lone Tree Plant [707][709]. - Adjusted loss for the year was $122.9 million, up from $111.2 million in the prior year, driven by increased spending on pre-development and exploration expenses [712]. - The company reported a net loss of $198.8 million for the year ended December 31, 2025, compared to a net loss of $121.5 million in 2024, reflecting an increase in cash used in operating activities [833]. - Net loss for the year ended December 31, 2025, increased to $198,847,000 from $121,533,000 in 2024 [847]. Cash Flow and Financing - Cash used in operating activities for the year was $83.6 million, comparable to $82.5 million in 2024, with cash and cash equivalents at $63.2 million as of December 31, 2025 [712]. - Cash provided by financing activities for the year ended December 31, 2025, was $139.0 million, up from $82.7 million in 2024, due to higher proceeds from equity issuances [839]. - The company issued 417.4 million shares in 2025, raising total gross proceeds of $193.4 million, compared to 111.3 million shares and $117.2 million in 2024 [821]. - A bought deal public offering raised gross proceeds of $172.9 million from 345.8 million units at $0.50 per unit, with net proceeds of $162.5 million [742]. - The Company secured a financing package of up to $500 million, which includes a royalty sale and a gold pre-payment facility, to fund development and refurbishment activities [717]. Production and Operational Highlights - In 2025, the Company achieved gold output of 31,930 ounces, meeting its guidance of 30,000 to 40,000 ounces, with Granite Creek underground contributing 22,977 ounces [720]. - The Company plans to increase annual gold production to approximately 300,000 – 400,000 ounces from less than 50,000 ounces currently, supported by three underground mines and one oxide open pit operation [719]. - The 2026 production guidance includes 30,000 - 40,000 ounces from Granite Creek underground and 10,000 ounces from Archimedes underground and residual heap leach operations [722]. - The Granite Creek property produced 22,977 ounces of gold in 2025, a 40% increase from 16,382 ounces in 2024, with total material mined reaching 355,372 tonnes [748]. - Gold produced at the Lone Tree Plant for the year was 6,427 ounces, an increase from 6,209 ounces in 2024 [777]. Exploration and Development - The company completed approximately 37,000 meters of drilling across its projects in 2025, enhancing mineral resource definitions and supporting feasibility studies [712]. - The Company plans to complete a feasibility study for the Granite Creek underground project by Q2 2026, supported by infill drilling results confirming high-grade mineralization [755]. - The Mineral Point open pit project is advancing with a drill program that completed 5,532 meters in 2025, aimed at supporting pre-feasibility and feasibility studies [764]. - The Company completed updated Preliminary Economic Assessments (PEAs) for five gold projects, supporting an updated mineral resource estimate and new development plan [739]. - The Cove Project has completed approximately 32,992 meters of infill drilling, enhancing the geological model and confidence in future resource delineation [770]. Costs and Expenses - Cost of sales for the year was $82.0 million, up from $64.6 million in the prior year, driven by increased gold ounces sold [789]. - Pre-development, evaluation, and exploration expenses totaled $38.0 million for 2025, primarily for underground mine development and infill drilling [753]. - Total pre-development, evaluation, and exploration expenses for the year ended December 31, 2025, were $66.1 million, an increase of 72.5% from $38.4 million in 2024 [792]. - The mining cost per tonne increased to $156 in 2025 from $126 in 2024, while processing costs rose to $136 per tonne from $33 [748]. - Operating costs for Granite Creek underground are projected to be between $110 million and $120 million, while growth capital for the Lone Tree Plant is estimated at $140 million to $160 million [722]. Liabilities and Financial Position - Total liabilities as of December 31, 2025, were $356.6 million, up from $315.0 million as of December 31, 2024, reflecting an increase of 13.5% [798]. - The Company’s working capital deficit increased to $37.9 million as of December 31, 2025, from $31.7 million in 2024 [799]. - The Convertible Debentures outstanding as of December 31, 2025, amounted to $80.3 million, an increase from $73.5 million in 2024 [804]. - The total liability for the Gold Prepay Agreement as of December 31, 2025, was $8.2 million, with 4,440 ounces of gold remaining to be delivered [813]. - The total liability for the Silver Purchase Agreement as of December 31, 2025, was $18.8 million, with 94,158 ounces remaining to be delivered under the 2025 annual minimum delivery amount [815].

Market Conditions and Financial Impact - The company experienced increased outflow rates in its Annuities business during 2024 and 2025, primarily due to elevated interest rates leading to full surrenders [184]. - A decline in market interest rates could materially adversely affect the company's results of operations, financial condition, and cash flows, significantly reducing profitability [180]. - The company anticipates that changes in equity markets may significantly affect its business and profitability, with strong equity markets leading to higher account balances and fee income [185]. - Increases in interest rates may negatively affect the company's profitability, capital position, and the value of its investment portfolio [181]. - The company's statutory reserves and surplus for variable annuities are sensitive to equity market changes, with non-linear relationships affecting reserve calculations [235]. - Income from certain investments can be uneven and volatile, impacting earnings and leading to lower-than-expected returns [282]. - Default risk on mortgage loans, primarily collateralized by commercial properties, may adversely affect profitability [283]. - Exposure to various industries and counterparties increases credit risk, particularly in the event of defaults [284]. - Collateral requirements related to declines in market value of specified assets may adversely affect liquidity [285]. - Disruptions in capital and credit markets may limit access to necessary capital, affecting liquidity and financial flexibility [222]. Regulatory and Compliance Challenges - Legislative and regulatory changes, such as the NAIC's temporary guidance approved in August 2023, have increased the company's statutory capital and estimated RBC ratio as of December 31, 2025 [193]. - The company is monitoring potential impacts from new regulations, including the implementation of a new GOES for calculating annuity and life reserves effective January 1, 2026 [193]. - Compliance with existing and emerging privacy laws could result in increased compliance costs and changes in business practices, potentially adversely affecting the company's reputation and financial condition [195]. - The company faces challenges related to the use of AI and big data, which could lead to increased compliance costs and changes in business practices [203]. - Increased scrutiny regarding ESG matters may impact the company's reputation and business operations, with new regulations requiring climate-related disclosures starting in 2026 [205]. - Regulatory actions could lead to substantial fines or restrictions on business activities, adversely affecting financial condition and results of operations [208]. - Changes in laws or regulations may impose additional disclosure requirements and affect the distribution model and sales of products, potentially increasing costs [209]. - Compliance with new fiduciary standards may increase regulatory burdens and litigation risks, adversely impacting financial results [210]. - Changes in tax laws could increase corporate taxes, negatively affecting results of operations and financial condition [212]. - Legal and regulatory actions could result in financial losses and harm the company's reputation, impacting business prospects [214]. Operational Risks and Challenges - The company faces potential adverse effects on its business and financial condition due to deficiencies in AI systems, including risks of cybersecurity incidents that may involve personal information [204]. - Cybersecurity threats have increased, with a proliferation of ransomware attacks and other cyber incidents, although the company has not experienced a material breach to date [259]. - The reliance on third-party vendors for critical services increases operational risks, including cybersecurity threats and supply-chain dependencies [265]. - The company’s flexible hybrid work model may increase operational risks, particularly in cybersecurity [258]. - The company may encounter significant costs related to litigation for intellectual property protection, which could impact its competitive position [255]. - The company faces intense competition for qualified employees, which may adversely affect its ability to support business operations [254]. - The company may face operational difficulties and unforeseen liabilities from acquisitions, which could adversely affect financial results [269]. Financial Strength and Ratings - A downgrade in the financial strength ratings of the company's insurance subsidiaries could negatively impact its ability to market products and lead to increased withdrawals by current customers [274]. - The company may not be able to maintain its current financial strength ratings, which could affect its cost of capital and ability to raise additional debt [275]. - An inability to access credit facilities could lead to reduced liquidity and potential downgrades in credit and financial strength ratings [231]. - The company ceded $1.2 trillion of life insurance in force to reinsurers for reinsurance protection as of December 31, 2025 [251]. - In November 2023, S&P implemented changes to its insurer RBC capital adequacy model, affecting the statutory capital required to maintain current ratings [229]. - A decrease in the capital and surplus of the insurance subsidiaries may lead to a downgrade in credit and insurer financial strength ratings [226]. - The company recorded a goodwill impairment of $634 million related to its Life Insurance segment during the third quarter of 2022 [239]. Risk Management Strategies - The company uses various hedging strategies to mitigate risks associated with guarantees on its variable products, but these strategies may not fully offset changes in carrying value [188]. - The company may need to strengthen recorded policy liabilities during periods of sustained lower interest rates, which could reduce net income in affected reporting periods [180]. - Significant adverse mortality experience could increase reinsurance costs or limit future coverage availability, impacting profitability [244]. - The company faces risks related to the collectability of reinsurance, which is dependent on the solvency of individual reinsurers [252]. - Future pandemics or catastrophic events could materially adversely affect the company's results of operations and financial condition [245]. - Restrictions on dividends from insurance subsidiaries could harm the company's ability to meet obligations and corporate expenses [223].

Company Operations - Tractor Supply Company operates 2,602 retail stores across 49 states, including 2,395 Tractor Supply stores and 207 Petsense stores[19]. - As of December 27, 2025, the company operated 2,602 retail stores across 49 states, including 2,395 Tractor Supply stores and 207 Petsense by Tractor Supply stores[58]. - Approximately 61% of the company's stores are in freestanding buildings, while 39% are located in shopping centers[59]. - The company opened 99 new Tractor Supply stores and five new Petsense by Tractor Supply stores in fiscal 2025, resulting in a 4% increase in selling square footage[192]. - The company plans to open approximately 100 new Tractor Supply stores in fiscal 2026, resulting in a selling square footage increase of approximately 4%[57]. Financial Performance - The company experienced a net sales increase of 4.3%, reaching $15.52 billion in fiscal 2025, compared to $14.88 billion in fiscal 2024[193]. - Comparable store sales rose by 1.2% in fiscal 2025, an improvement from a 0.2% increase in fiscal 2024[193]. - Gross profit increased by 4.8% to $5.65 billion in fiscal 2025, with a gross margin of 36.4%, up from 36.3% in fiscal 2024[193]. - Operating margin decreased by 41 basis points to 9.5% of net sales in fiscal 2025, down from 9.9% in fiscal 2024[193]. - The company ended fiscal 2025 with $194.1 million in cash and cash equivalents and long-term debt of $1.77 billion[194]. - The company paid cash dividends totaling $487.7 million in fiscal 2025, an increase from $472.5 million in fiscal 2024, with a dividend of $0.92 per share compared to $0.88 per share in the previous year[172]. - The company returned $848.5 million to stockholders through stock repurchases and dividends in fiscal 2025[194]. Strategic Initiatives - The company completed the acquisition of Allivet, an online pet pharmacy, for $135 million, financed with cash on hand[18]. - The company aims to expand its customer base by enhancing digital capabilities and offering personalized customer experiences[187]. - The company is remodeling existing stores to improve customer experience, focusing on new fixtures, layouts, and product offerings[25]. - The company is expanding its distribution facilities to support long-term growth, but delays in construction could adversely affect future operations and revenue growth[116]. - The company is investing in artificial intelligence and emerging technologies to enhance customer experiences, but there are risks of operational disruptions and compliance challenges[130]. Customer Engagement - The Neighbor's Club loyalty program enhances customer engagement and drives desired purchase behaviors, supported by vendor promotions and funding[38]. - The company operates a Neighbor's Club loyalty program to enhance customer engagement and personalize experiences across channels[39]. - Customer satisfaction scores are considered best-in-class, with continuous feedback implementation to improve service at both company and store levels[23]. Supply Chain and Distribution - The distribution network includes facilities with a total capacity of approximately 7.8 million square feet, with 81% of merchandise received through this network[36]. - A new distribution center in Nampa, Idaho, is expected to add approximately 865,000 square feet of capacity and begin operations in Q4 2026[36]. - The company operates distribution facilities totaling approximately 6.5 million square feet across various locations[164]. - The company relies on a distribution and transportation network, including third-party logistics, to deliver goods efficiently, with potential disruptions leading to lower sales and profitability[115]. Risks and Challenges - The company experienced fluctuations in comparable store sales, which are defined as sales in stores open for at least twelve months, indicating potential challenges in maintaining sales growth[77]. - The company acknowledges that its merchandising and marketing initiatives may not deliver expected results, which could lead to overstocking unpopular products and negatively impact profitability[78]. - The company faces risks related to timely identification and response to consumer needs and trends, which are critical for maintaining market share and customer satisfaction[79]. - Weather and climate risks, including extreme weather conditions and climate change, may significantly impact the company's financial condition and results of operations[90]. - The competitive retail environment poses risks to the company's ability to maintain profitability and sales growth, as it competes with various retailers for customers and locations[87]. - The company faces risks associated with attracting and retaining qualified team members, which could adversely affect financial performance[100][101]. - Supply chain risks from reliance on international vendors may lead to inadequate supplies and adversely affect business operations[105][108]. Technology and Innovation - The company has invested in technology to enhance operational efficiency, including data analytics, automation, and artificial intelligence[43]. - Significant technology investments are being made to streamline the supply chain, although there are risks of disruptions and inefficiencies during implementation[117]. - The company has invested in management information and control systems, including an enterprise resource planning (ERP) system that tracks merchandise from initial order through final sale[42]. Compliance and Regulatory - The company is subject to various federal, state, and local laws, including environmental regulations, which could materially affect operations and financial results[150]. - The company must comply with the Foreign Corrupt Practices Act, with noncompliance potentially leading to penalties and reputational harm[149]. - The company is subject to regulatory changes regarding privacy and data breaches, which could increase operational costs and legal liabilities[122]. - Changes in effective tax rates and audits by taxing authorities could materially impact the company's financial results[152]. Market Conditions - Macroeconomic conditions, including inflation and geopolitical tensions, can reduce consumer spending and negatively impact sales and profitability[98][99]. - Purchase price volatility due to inflationary pressures may adversely affect sales and gross margins, necessitating effective vendor management strategies[99]. - Changes in market conditions or credit ratings could restrict capital access, adversely affecting business operations and growth initiatives[131].

Bitcoin Holdings and Strategy - As of February 13, 2026, the company held approximately 717,131 bitcoins, acquired at an aggregate purchase price of $54.5 billion, with an average purchase price of approximately $76,027 per bitcoin[29]. - The market price of one bitcoin on February 13, 2026, was reported at $68,734, indicating a potential unrealized loss on the company's bitcoin holdings[29]. - The bitcoin acquisition strategy involves using proceeds from capital raising transactions, including offerings of Class A common stock and preferred securities, to acquire bitcoin[31]. - The company actively manages its bitcoin holdings and capital structure to maintain long-term durability, liquidity, and flexibility[35]. - The company evaluates its bitcoin strategy continuously based on market conditions, capital structure, and anticipated cash resource needs[25]. - The capital management strategy focuses on achieving accretive acquisitions of bitcoin while managing cost of capital and financial obligations[37]. - The concentration of assets in bitcoin limits the company's ability to mitigate risks through diversification[122]. - The ability to execute the bitcoin strategy relies heavily on obtaining favorable equity and debt financing[123]. - The company may need to sell bitcoin to satisfy financial obligations if unable to secure timely equity or debt financing[113]. Financial Performance and Risks - For the fiscal year ended December 31, 2025, the unrealized loss on digital assets was $5.40 billion, partially offset by a deferred tax benefit of $1.55 billion[110]. - The fair market value of bitcoin holdings has fluctuated between $65,000 and $120,000 in the past year, indicating high volatility[120]. - The company experienced significant fluctuations in operating results, with quarter-to-quarter comparisons not indicative of future performance[108]. - The company incurred an unrealized gain on digital assets of $3.89 billion for the quarter ended September 30, 2025, highlighting the volatility in bitcoin pricing[128]. - The price of bitcoin has historically been highly volatile, influencing the company's financial results and market price of listed securities[130]. - The company incurred $4.06 billion of cumulative impairment on its bitcoin holdings through December 31, 2024, reflecting the volatility of bitcoin prices[145]. - The company faces enhanced regulatory scrutiny due to its bitcoin strategy and holdings, particularly from the SEC[155]. - The company is subject to significant legal, commercial, regulatory, and technical uncertainties regarding digital assets, which could adversely affect bitcoin's price[133]. Regulatory Environment - The SEC approved the first U.S. spot bitcoin ETPs in January 2024, expanding access through regulated investment vehicles[59]. - Regulatory actions and evolving laws may materially affect the nature of digital asset markets and the company's bitcoin strategy[71]. - The CFTC considers bitcoin a commodity under the Commodity Exchange Act, allowing for broad enforcement against market manipulation[72]. - Regulatory changes reclassifying bitcoin as a security could classify the company as an "investment company," imposing additional regulatory controls[181]. - The regulatory environment for digital assets is evolving, with potential new laws and enforcement actions that could impact the company's ability to hold and transact in bitcoin[159]. Custody and Security Risks - The company faces counterparty risks related to custodians, which could inhibit ownership rights and access to bitcoin holdings[125]. - The company has implemented measures to mitigate counterparty risks but remains vulnerable to potential insolvency of custodians[125]. - The company does not maintain separate insurance for potential bitcoin losses, exposing it to significant risks in case of custodial insolvency[179]. - As of December 31, 2025, custodians maintain commercial insurance coverage of $320 million, $100 million, and over $100 million for bitcoin losses, which is insufficient to cover the entirety of the company's bitcoin holdings[179]. - Security breaches and cyberattacks in the bitcoin ecosystem could lead to a loss of confidence and adversely affect the company's financial condition[174]. Market Dynamics - Bitcoin consistently ranks among the most liquid traded assets globally, with substantial daily trading volume across spot and derivatives markets[58]. - The emergence of stablecoins and government-backed digital currencies could negatively impact bitcoin's price and market position[64]. - A December 2022 study estimated that wash trading averaged over 70% of reported volume on unregulated exchanges, indicating potential manipulation in the bitcoin market[163]. - In 2022, several major participants in the bitcoin ecosystem, including Celsius Network and FTX, filed for bankruptcy, leading to significant declines in bitcoin prices[165]. - The market for bitcoin is highly uncertain, with factors such as institutional demand and public familiarity potentially affecting its price[139]. Company Operations and Structure - The company had a total of 1,539 employees as of December 31, 2025, with 448 based in the United States and 1,091 internationally[98]. - The company completed a 10-for-1 stock split of its class A and class B common stock on August 7, 2024, retroactively adjusting all applicable share information[105]. - The company’s cloud solution for government achieved FedRAMP authorization, ensuring compliance with essential cloud security and data protection standards[82]. - The company offers its analytics platform in both on-premises product licenses and cloud subscriptions, with full support for on-premises licenses ending December 31, 2026[85]. - The company has established strategic partnerships with various third-party vendors, including cloud hosting providers and consulting firms, to extend its platform's reach[87]. Technology and Innovation - The Strategy One platform is designed for medium to large enterprise deployments, delivering real-time insights across web, mobile, and custom applications[80]. - The company’s AI-powered data modeling capabilities accelerate data product creation and enhance performance across workloads[78]. - The integration of AI into enterprise analytics products may incur substantial costs and could result in reputational harm if AI tools produce inaccurate analyses[194]. - The company faces risks related to changes in third-party software or systems, which may require substantial capital investment to maintain software interoperability[200]. - Software errors, bugs, or security vulnerabilities could lead to reduced demand and revenue, as well as potential litigation claims against the company[201]. Compliance and Legal Risks - The company is subject to various privacy and data protection laws, including the GDPR, which imposes significant compliance requirements and potential fines[95]. - Compliance with complex government contracting requirements may expose the company to civil and criminal penalties if not adhered to[212]. - The company has implemented policies to comply with anti-money laundering and sanctions laws, but risks regulatory proceedings if bitcoin is acquired from bad actors[156][157]. - Customer agreements may limit the company's exposure to product liability claims, but these provisions may be unenforceable in certain jurisdictions[202]. - The company's intellectual property is valuable, and any inability to protect it could reduce the value of its offerings and brand[203].

Bitcoin Holdings and Strategy - As of February 13, 2026, the company held approximately 717,131 bitcoins, acquired at an aggregate purchase price of $54.5 billion, with an average purchase price of approximately $76,027 per bitcoin [29]. - The market price of one bitcoin on February 13, 2026, was reported at $68,734, indicating a potential unrealized loss on the company's bitcoin holdings [29]. - The bitcoin acquisition strategy involves using proceeds from capital raising transactions, including offerings of Class A common stock and preferred securities, to acquire bitcoin [23]. - The company actively manages its bitcoin holdings and capital structure to maintain long-term durability, liquidity, and flexibility [35]. - The company evaluates its bitcoin strategy continuously based on market conditions, capital structure, and anticipated cash resource needs [25]. - The capital management strategy focuses on achieving accretive acquisitions of bitcoin while managing cost of capital and financial obligations [37]. - The company’s bitcoin strategy relies heavily on obtaining equity and debt financing, which is critical for executing its bitcoin purchases [123]. - Bitcoin has traded between $65,000 and $120,000 in the past year, highlighting its volatility and potential impact on financial results [120]. - The company expects significant variances in gains and losses on bitcoin holdings due to market volatility, which could adversely affect financial results [128]. - The company may pursue strategies to generate income from its bitcoin holdings, which could subject it to additional regulatory compliance requirements [158]. Financial Performance and Risks - For the fiscal year ended December 31, 2025, the unrealized loss on digital assets was $5.40 billion, partially offset by a deferred tax benefit of $1.55 billion [110]. - The company experienced significant fluctuations in operating results, with quarter-to-quarter comparisons not indicative of future performance [108]. - The cost basis of the bitcoin holdings was less than its fair market value as of December 31, 2025, but has since reversed, indicating potential future tax liabilities [111]. - Deferred tax liabilities related to unrealized gains on bitcoin holdings were approximately $2.42 billion as of December 31, 2025 [111]. - The company does not expect its enterprise analytics software business to generate sufficient cash flow to meet financial obligations over the next twelve months [112]. - The company may face increased tax liabilities due to changes in tax laws and regulations, which could adversely affect financial results [114]. - The company incurred $4.06 billion of cumulative impairment on its bitcoin holdings through December 31, 2024, reflecting the volatility of bitcoin prices [145]. - The company's class A common stock value declined significantly following the approval of spot bitcoin ETPs, indicating a shift in investor preference [150]. Regulatory Environment - The SEC approved the first U.S. spot bitcoin ETPs in January 2024, expanding access through regulated investment vehicles [59]. - The SEC has initiated enforcement actions against major participants in the digital asset industry, which could materially affect the price of bitcoin [136]. - Regulatory actions and evolving laws may materially affect the nature of digital asset markets and the company's bitcoin strategy [71]. - The current regulatory environment is influenced by past events, such as the FTX bankruptcy, which may impose significant costs on the company's ability to transact in bitcoin [159]. - Regulatory developments could impact the availability of custodial services, affecting the company's ability to diversify its bitcoin custody arrangements [178]. - The company faces risks related to potential regulatory changes that could classify bitcoin as a security, impacting its business operations and market price [181][182]. Custodial and Security Risks - As of February 13, 2026, bitcoin holdings were distributed among three custodians: Coinbase (40%), Anchorage (37%), and Fidelity (23%) of total bitcoin custodied [45]. - The company is subject to counterparty risks related to custodians, which could inhibit ownership rights and access to bitcoin holdings [125]. - The company does not maintain separate insurance for potential bitcoin losses, exposing it to significant risks in case of custodial insolvency [179]. - As of December 31, 2025, custodians maintain commercial insurance coverage of $320 million, $100 million, and over $100 million for bitcoin losses, which is insufficient to cover the entirety of the company's bitcoin holdings [179]. - Cybersecurity risks remain a significant concern, with potential breaches leading to loss of bitcoin and adverse effects on financial condition [174]. - Cybersecurity incidents could adversely affect the company's operations, especially concerning the integration of AI capabilities [195]. Market Dynamics and Competition - Bitcoin consistently ranks among the most liquid traded assets globally, with substantial daily trading volume across spot and derivatives markets [58]. - The emergence of stablecoins and government-backed digital currencies could negatively impact bitcoin's price and market position [64]. - The emergence of alternative digital assets and stablecoins, particularly following the enactment of the GENIUS Act, poses a competitive threat to bitcoin [168]. - Reports indicate that over 70% of trading volume on certain unregulated exchanges may be attributed to wash trading, raising concerns about the actual size of the bitcoin market [163]. - The availability of alternative investment vehicles for bitcoin may adversely affect the market price of the company's listed securities [148]. Employee and Operational Considerations - As of December 31, 2025, the company had a total of 1,539 employees, with 448 based in the United States and 1,091 internationally [98]. - The company may struggle to recruit or retain skilled personnel, which could adversely affect its business and financial condition [214]. - The company faces various risks in doing business with government entities, including procurement challenges and budgetary constraints [209]. Technology and Product Development - The company’s cloud solution for government achieved FedRAMP authorization, ensuring compliance with U.S. federal cloud security standards [82]. - The Strategy One platform supports medium to large enterprise deployments, delivering real-time insights across web, mobile, and custom applications [80]. - The company offers cloud subscriptions typically for 36 months, with standard support included and premium support available for additional fees [85]. - The integration of AI into the company's analytics offerings could incur substantial costs and may result in reputational harm or legal liabilities [194]. - The company’s competitive differentiators include a cloud-native architecture optimized for major hyperscalers, providing flexibility and ease of integration [81]. Legal and Compliance Issues - The company is subject to various privacy and data protection laws, including the GDPR, which imposes significant compliance requirements and potential penalties [95]. - The company has implemented policies to comply with anti-money laundering and sanctions laws, but risks regulatory proceedings if bitcoin is acquired from bad actors [156][157]. - Customer agreements may limit the company's exposure to product liability claims, but these provisions may be unenforceable in certain jurisdictions [202]. - Any systems failure or security breach could result in legal proceedings against the company, impacting its reputation and financial performance [219].

Bitcoin Holdings and Strategy - As of February 13, 2026, the company held approximately 717,131 bitcoins, acquired at an aggregate purchase price of $54.5 billion, with an average purchase price of approximately $76,027 per bitcoin [29]. - The market price of one bitcoin on February 13, 2026, was reported at $68,734, indicating a potential unrealized loss on the company's bitcoin holdings [29]. - The bitcoin acquisition strategy involves using proceeds from capital raising transactions, including offerings of Class A common stock and preferred securities, to acquire bitcoin [23]. - The company actively manages its bitcoin holdings and capital structure to maintain long-term durability, liquidity, and flexibility [35]. - The company evaluates its bitcoin strategy continuously based on market conditions, capital structure, and anticipated cash resource needs [25]. - The company aims to generate value from its bitcoin holdings through innovative financial strategies, including the issuance of digital credit instruments [26]. - The company’s capital management strategy focuses on achieving accretive acquisitions of bitcoin while managing cost of capital and financial obligations [37]. - The company’s bitcoin strategy relies heavily on obtaining equity and debt financing, with all bitcoin purchases made using proceeds from such financings [123]. - The company expects to incur additional indebtedness and fixed charges as part of its bitcoin strategy, which may create liquidity risks if bitcoin prices decline [112]. - A significant decrease in the fair market value of bitcoin holdings could adversely affect the company's ability to satisfy financial obligations [112]. - The company has adopted ASU 2023-08 effective January 1, 2025, requiring bitcoin holdings to be measured at fair value, resulting in a cumulative-effect net increase to retained earnings of $12.75 billion [128]. - The company incurred $4.06 billion of cumulative impairment on its bitcoin holdings through December 31, 2024, reflecting the volatility of bitcoin prices [145]. - The concentration of bitcoin holdings limits risk mitigation and enhances the risks inherent in the company's bitcoin strategy [166]. Financial Performance and Risks - For the fiscal year ended December 31, 2025, the unrealized loss on digital assets was $5.40 billion, partially offset by a deferred tax benefit of $1.55 billion [110]. - The company experienced significant fluctuations in operating results, with quarter-to-quarter comparisons not indicative of future performance due to volatility in bitcoin prices [108]. - The cost basis of the bitcoin holdings was less than its fair market value as of December 31, 2025, but has since exceeded its fair market value, impacting deferred tax liabilities [111]. - The company’s enterprise analytics software business did not generate positive cash flow from operations for the fiscal year ended December 31, 2025 [112]. - The company is subject to potential tax liabilities that could materially affect its financial results, particularly if bitcoin is sold at prices above its cost basis [114]. - The price of bitcoin has historically been highly volatile, influencing the company's financial results and market price of listed securities, with significant declines impacting user and investor confidence [130]. - The company has experienced significant price fluctuations in bitcoin, which could adversely affect its business and financial condition [144]. - Future regulatory changes could impose significant costs or limit the company's ability to hold and transact in bitcoin [159]. Regulatory Environment - The laws and regulations applicable to bitcoin are evolving, with various U.S. federal and state agencies examining digital asset operations [70]. - The SEC approved the first U.S. spot bitcoin ETPs in January 2024, expanding access through regulated investment vehicles [59]. - The SEC approved the listing and trading of spot bitcoin ETPs, which began trading on January 11, 2024, with a trading volume of $4.6 billion on the first day [149]. - The company faces enhanced regulatory scrutiny due to its bitcoin strategy, especially with the increasing focus on anti-money laundering and compliance regulations [155]. - Future regulatory developments, such as the SEC's enforcement actions and new legislation like the GENIUS Act, could impose additional burdens on the company and affect bitcoin's price [135]. - Regulatory changes reclassifying bitcoin as a security could classify the company as an "investment company," imposing additional regulatory controls [181]. - The company does not comply with regulations applicable to investment companies, allowing broad discretion over its investment and cash management policies [183]. Market Conditions and Competition - The emergence of stablecoins and government-backed digital currencies could negatively impact bitcoin's price and market position [67]. - The emergence of alternative digital assets, including stablecoins and CBDCs, could negatively impact the price of bitcoin and the company's financial condition [168][169]. - The market for bitcoin is highly uncertain, influenced by factors such as institutional demand and the availability of alternative investment vehicles [139]. - The broader digital assets industry has faced high-profile bankruptcies and regulatory actions, negatively impacting the adoption rate and use of bitcoin [126]. - The company faces risks from potential changes in consumer preferences and competition from other digital assets that may offer better characteristics [131]. - The company acknowledges that significant legal, commercial, regulatory, and technical uncertainties surrounding digital assets could adversely affect bitcoin's price and the ability to transact [133]. Operational and Strategic Initiatives - The company established a USD Reserve of $2.25 billion as of February 13, 2026, to support dividend payments on preferred stock and interest on outstanding indebtedness [25]. - The company structured and issued five classes of Preferred Stock in 2025, providing differentiated economic exposure to its Class A common stock and bitcoin holdings [24]. - The company completed a 10-for-1 stock split of its class A and class B common stock on August 7, 2024, retroactively adjusting all applicable share and per share information [105]. - The company has established strategic partnerships with various third-party vendors, enhancing its sales and service coverage across regions and industries [87]. - The company’s AI-powered business intelligence platform, Strategy One, supports medium to large enterprise deployments and delivers real-time insights [80]. - The company’s generative AI capabilities automate and accelerate the deployment of AI-enabled applications, making advanced analytics accessible to non-technical users [79]. - The company’s marketing programs target technology and line-of-business executives across large global enterprises and mid-size organizations [89]. - The company’s competitive differentiators include a cloud-native architecture optimized for major hyperscalers, enhancing customer choice and ease of integration [81]. Employee and Compliance Matters - As of December 31, 2025, the company had a total of 1,539 employees, with 448 based in the United States and 1,091 internationally [98]. - The company is subject to various privacy and data protection laws, including the GDPR, which imposes significant compliance requirements and potential penalties [95]. - Changes in privacy laws and regulations could impose additional compliance costs and operational challenges, adversely affecting business performance [215][218]. - The company relies on skilled personnel for success, and losing key employees could materially affect business and financial condition [214]. Cybersecurity and Technology Risks - The company may face risks related to the custody of bitcoin, including loss of private keys and potential cyberattacks [178]. - Cybersecurity incidents related to AI integration could adversely affect the company's business and results of operations [195]. - The company has experienced software errors and security vulnerabilities in the past, which could lead to lost revenue and damage to its reputation, impacting future business performance [201]. - The integration of AI into enterprise analytics products may incur substantial costs and could result in reputational harm if AI tools produce inaccurate analyses [194]. - The company faces various risks in doing business with government entities, including procurement challenges and budgetary constraints, which could adversely impact demand for its offerings [209][210].