ESTC: 10-K Risk Factor Changes

2026 vs 2025  ·  SEC EDGAR  ·  2026-11-14

Disclosure overview

60 matched sections have text edits; 9 have identical text after formatting cleanup. 2 current and 6 earlier sections lack a one-to-one match.

Business-risk direction: Undetermined.

Section matches and text edits do not measure financial impact. Related passages may explain reorganized disclosures; review them in context.

✓ Deterministic extraction — no AI-generated data

Added factors have no prior-year match; removed factors have no current-year match. Changed wording describes edits within matched factors. Check whether unmatched wording was reorganised elsewhere: an added factor does not establish a new risk, and a removed factor does not establish resolved exposure.

2
No prior section match
6
No current section match
60
Changed wording
9
Unchanged
🟡 Changed wording Disclosure change7/10

Ethical and regulatory issues relating to the use of AI and similar evolving technologies in our offerings may result in new or enhanced governmental or regulatory scrutiny, reputational harm, damage to our competitive position, and liability.

high match confidence

Sentence-level differences:

View all 21 sentence differences
  • Removed sentence: "We view our continued investment in AI and generative AI research and development as an opportunity to enhance our products and services, strengthen our competitive advantage, and contribute to the responsible advancement of AI and generative AI technology."
  • Removed sentence: "While we aim to do so in a responsible manner, the use of AI and generative AI in our products and services presents ethical and legal risks to our business, financial condition, and results of operations."
  • Added sentence: "Social, ethical, security and regulatory issues relating to the use of new and evolving technologies such as AI and ML, including generative and agentic AI and AI models, in our offerings, internal operations or partnerships, may result in reputational harm and liability, and may cause us to incur additional research and development costs to resolve such issues."
  • Added sentence: "The use of generative and agentic AI, which are relatively new and emerging technologies in the early stages of commercial use, exposes us to additional risks, such as damage to our reputation, competitive position, and business, legal and regulatory risks and additional costs."
  • Added sentence: "Potential government regulation related to AI and ML use and ethics may also increase the burden and cost of research and development in this area, and failure to properly remediate AI and ML usage or ethics issues may cause public confidence in AI and ML to be undermined."
  • Added sentence: "The rapid evolution of AI and ML will require the application of resources to develop, test and maintain any potential offerings or partnerships to help ensure that AI and ML are implemented ethically to minimize unintended, harmful impact."
  • Removed sentence: "Such risks related to the use of AI could, whether directly or indirectly, harm our results of operations, competitive position and business."
  • Removed sentence: "AI is the subject of evolving review by various domestic and international governmental and regulatory agencies, including the SEC and the Federal Trade Commission (“FTC”), and laws, rules, directives, and regulations governing the use of AI, such as the EU Artificial Intelligence Act, are changing and evolving rapidly."
  • Removed sentence: "We may not always be able to anticipate how to respond to these legal frameworks for AI use and we may have to expend resources to adjust or audit our products and services in certain jurisdictions, especially if the legal frameworks are not consistent across jurisdictions."
  • Removed sentence: "Any failure or perceived failure by us to comply with laws, rules, directives, and regulations governing the use of AI could have an adverse impact on our business."
  • Added sentence: "Such risks related to the use of AI, whether directly or indirectly, could harm our results of operations, competitive position and business."
  • Added sentence: "AI is the subject of evolving review and scrutiny by various domestic and international governmental and regulatory agencies."
  • Added sentence: "Laws, rules, directives, and regulations governing the use of AI, such as the EU Artificial Intelligence Act (“EU AI Act”), are changing and evolving rapidly."
  • Added sentence: "The EU AI Act establishes, among other things, a risk-based governance framework for regulating AI systems operating in the EU."
  • Added sentence: "This framework categorizes AI systems by their intended purposes into levels of risk, with those deemed unacceptable or high risk being strictly regulated or prohibited and all remaining AI systems being classified as low risk."
  • Added sentence: "The EU AI Act prohibits certain uses of AI systems and places numerous obligations on providers and deployers of permitted AI systems, with heightened requirements based on AI systems that are general purpose, which we currently deploy, or considered high risk."
  • Added sentence: "In addition, a patchwork of state-level AI-related legislation continues to emerge in the United States."
  • Added sentence: "We may not be able to anticipate how to respond to these rapidly evolving frameworks, and we may need to expend resources to adjust our operations or offerings in certain jurisdictions if the legal frameworks are inconsistent across jurisdictions."
  • Added sentence: "Furthermore, because AI and ML technology itself is highly complex and rapidly developing, it is not possible to predict all of the legal, operational or technological risks that may arise relating to the use of AI and ML."
  • Added sentence: "These and other developments may require us to make significant changes to our use of AI and ML, including by limiting or restricting our use of AI and ML, which may require us to make significant changes to our policies and practices."
  • Added sentence: "The cost to comply with such laws or regulations could be significant and would increase our operating expenses, which could adversely affect our business, financial condition and results of operations."

Current (2026):

View prior text (2025)

We view our continued investment in AI and generative AI research and development as an opportunity to enhance our products and services, strengthen our competitive advantage, and contribute to the responsible advancement of AI and generative AI technology. While we aim to do so in a responsible manner, the use of AI and generative AI in our products and services presents ethical and legal risks to our business, financial condition, and results of operations. If our use of AI becomes controversial, we may experience loss of user trust, as well as brand or reputational harm, competitive injury, or legal liability. The use of AI technologies also could expose us to an increased risk of cybersecurity threats and incidents and claims or other adverse effects from infringements or violations of intellectual property or other regulated activity. Our use of such technologies could increase the risk of exposure of our or other parties’ proprietary confidential information, or other confidential or sensitive information, to unauthorized recipients, including inadvertent disclosure of confidential or sensitive information into publicly available third-party training sets. Such risks related to the use of AI could, whether directly or indirectly, harm our results of operations, competitive position and business.

AI is the subject of evolving review by various domestic and international governmental and regulatory agencies, including the SEC and the Federal Trade Commission (“FTC”), and laws, rules, directives, and regulations governing the use of AI, such as the EU Artificial Intelligence Act, are changing and evolving rapidly. We may not always be able to anticipate how to respond to these legal frameworks for AI use and we may have to expend resources to adjust or audit our products and services in certain jurisdictions, especially if the legal frameworks are not consistent across jurisdictions. Any failure or perceived failure by us to comply with laws, rules, directives, and regulations governing the use of AI could have an adverse impact on our business.

2026: Ethical and regulatory issues relating to the use of AI and similar evolving technologies in our offerings may result in new or enhanced governmental or regulatory scrutiny, reputational harm, damage to our competitive position, and liability. — exact passage unavailable; open filing

2025: Ethical and regulatory issues relating to the use of AI and similar evolving technologies in our offerings may result in new or enhanced governmental or regulatory scrutiny, reputational harm, damage to our competitive position, and liability. — exact passage unavailable; open filing

🟡 Changed wording Any actual or perceived failure by us to comply with government or other obligations related to privacy, data protection, and information security could adversely affect our business. 🔒
🟡 Changed wording Our business, reputation, or financial results may be adversely affected by any failure by us to be successful in our AI initiatives, by significant competition we face in the AI landscape, and by uncertain market understanding and valuation of AI and machine learning technologies. 🔒
🟡 Changed wording If we experience a security incident, or if unauthorized access to or other unauthorized processing of confidential information, including personal data, otherwise occurs, our software may be perceived as not being secure, customers may reduce the use of or stop using our products, and we may incur significant liabilities. 🔒

And 64 more changes in the full comparison.

67 more changes in this filing

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