EPAM Systems Inc.: 10-K Risk Factor Changes

2025 vs 2024  ·  SEC EDGAR  ·  2026-05-22
Other years: 2026 vs 2025 · 2024 vs 2023
⚠ AI-Generated

The summary below was generated by an AI language model and may contain errors or omissions. All other content on this page is deterministically extracted from the original SEC EDGAR filing.

EPAM Systems added one new risk factor in 2025 focused on geopolitical instability affecting operations and revenue in key markets, while substantially modifying 20 existing risks including heightened concerns around generative AI competitive positioning and expanded ESG-related operational and reputational exposure. The company eliminated no risks from 2024, indicating a net expansion of disclosed risk considerations rather than risk retirement or consolidation. Modified risks reveal particular emphasis on emerging technology adoption and environmental, social, and governance compliance as material business challenges.

✓ Deterministic extraction — no AI-generated data

Classification is based on semantic text similarity scoring and may include approximations. “No match” means no high-confidence textual match was found — not necessarily that a section was removed.

1
New Risks
0
Removed
20
Modified
14
Unchanged
🟢 New in Current Filing Instability in geographies where we have significant operations and personnel or where we derive substantial amounts of revenue could have a material adverse effect on our business, clients, service delivery, and financial results. 🔒
🟡 Modified The focus on environmental, social and governance topics, including commitments and disclosures we have made and may need to make, may result in additional operational costs and negative reputational impacts. 🔒
🟡 Modified If we are unable to keep pace with the adoption and use of generative AI technology in our business and effectively implement generative AI in our workforce planning and deployment, we could become less competitive in our industry. 🔒
🟡 Modified Security breaches and other disruptions to our network security that compromise our information expose us to liability and cause our business and reputation to suffer. 🔒
🟡 Modified Our revenues are highly dependent on a limited number of industries, and any decrease in demand for outsourced services in these industries could reduce our revenues and adversely affect our results of operations. 🔒
🟡 Modified We may be unable to effectively manage our growth or achieve anticipated growth, which could place significant strain on our management, systems, resources, and results of operations. 🔒
🟡 Modified If we cause, or are perceived to have caused, disruptions to our clients’ businesses, provide inadequate service, or breach contractual obligations, our clients may have claims for substantial damages against us and/or our reputation may be damaged. Our insurance coverage may be inadequate to protect us against such claims. 🔒
🟡 Modified We may face intellectual property infringement claims that could be time-consuming and costly to defend. If we fail to defend ourselves against such claims, we may lose significant intellectual property rights and may be unable to continue providing our existing services. 🔒
🟡 Modified Our hedging program is subject to counterparty default risk. 🔒
🟡 Modified Existing policy and substantial changes to fiscal, political, regulatory and other federal policies may adversely affect our business and financial results. 🔒
🟡 Modified Our success depends substantially on the continuing efforts of our senior executives and other key personnel, and our business may be severely disrupted if we lose their services and our succession planning efforts are ineffective. 🔒
🟡 Modified We are subject to laws and regulations in the U. S. and other countries in which we operate, including export restrictions, economic sanctions, and anti-bribery and anti-corruption laws. Compliance with these laws requires significant resources and non-compliance may result in civil or criminal penalties and other remedial measures. 🔒
🟡 Modified We must successfully attract, hire, train and retain qualified personnel to service our clients’ projects and we must productively utilize those personnel to remain profitable. 🔒
🟡 Modified Development and deployment of measures to protect our information security or that of our clients may be inadequate and could adversely affect our results of operations. 🔒
🟡 Modified There is a long selling and implementation cycle for our services that require us to make significant resource commitments prior to realizing revenues for those services. 🔒
🟡 Modified If we fail to integrate or manage acquired companies efficiently and effectively, or if acquisitions do not perform to our expectations individually or in the aggregate, our overall profitability and growth plans could be materially adversely affected. 🔒
🟡 Modified Our operating results may be negatively impacted by the loss of certain tax benefits provided to companies in our industry by the governments of Belarus, Poland, and other countries. 🔒
🟡 Modified We generally do not have long-term commitments from our clients, our clients may terminate contracts before completion or choose not to renew contracts, and we are not guaranteed payment for services. Loss of business or non-payment from significant clients could materially affect our results of operations. 🔒
🟡 Modified If we are unable to compete successfully against competitors, pricing pressures or loss of market share could have a material adverse effect on our business. 🔒
🟡 Modified Increases in wages, equity compensation, and other compensation expenses could limit our competitive advantage, increase our costs, and result in dilution to our stockholders. 🔒
🟡 Modified The invasion of Ukraine and the resulting war has had and could continue to have a material adverse effect on our personnel, business, and finances. 🔒
21 changes in this historical filing

Historical year-over-year comparisons (2025 vs 2024 and earlier) are available on the Pro plan.

Get full access — from $29/month Already a Pro subscriber? View full diff →