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H.S. sophomore Avg
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New words:
abated, accomplishment, AI, artificial, BenefitWallet, biased, Black, burdensome, Chairman, CME, CODM, column, Conduent, consequential, CSO, deepen, Delano, detriment, doctorate, ERG, ethical, explanation, fabric, family, forefront, frequency, genuine, gradually, guaranty, half, Hispanic, improper, inaccurate, insider, intelligence, internship, interviewing, JSOC, Ladd, layer, library, machine, median, mediation, Michigan, Neeleman, negotiating, neutral, outlook, overnight, Parity, Partnership, Phoenix, placement, prime, prominent, proven, proximately, ready, reclassified, recommend, relet, reletting, roadmap, robotic, Secretary, SOFR, Specialist, stacked, Stephen, strongest, Surface, tabletop, trial, University, vi, Vice, wallet, window
Removed:
accuracy, achievement, assure, averaging, Biden, Bliley, broadly, celebrate, complexity, connect, continuing, convertible, copy, copyright, coupon, cycle, decade, defend, defensible, dilution, direction, dispute, distinct, distribute, dividend, emotional, enforce, enforcing, escalation, existed, fewer, focused, foreign, home, imposition, infringing, initiate, input, insight, job, lesser, logical, manual, match, military, misappropriating, misappropriation, outbreak, Policing, preceding, predicting, prioritize, protecting, refined, regulating, relied, relying, remediated, repaid, reserved, royalty, secret, Similarly, staffing, targeted, telemedicine, terrorist, TPA, traded, unknowingly, unreliable, unscheduled, validity, vendor, viewed, violate, Wisconsin, workplace
Financial report summary
?Risks
- Any diminution in, elimination of, or change in the availability of tax benefits for HSAs and other CDBs would materially adversely affect us.
- Failure to adequately place and safeguard HSA cash and Client-held funds, or the failure of any of our depository or insurance company partners, could materially and adversely affect our business, financial condition and results of operations.
- Failure to adequately manage the liquidity of the custodial assets held by our Depository Partners and insurance company partners could materially and adversely affect our business, financial condition, and results of operations.
- Integration of our acquisitions may not be successful, and we may not realize the synergies anticipated from our acquisitions.
- A decline in interest rate levels would reduce our ability to earn income on our HSA Assets and Client-held funds and to attract HSA contributions.
- A decline in the value of invested HSA Assets would adversely affect our results of operations.
- If we are not successful in adapting to our rapidly evolving industry, our growth may be limited, and our business may be adversely affected.
- Any diminution in the use of HSAs or other CDBs would materially adversely affect us.
- We may be unable to compete effectively against our current and future competitors.
- Developments in the rapidly changing healthcare industry could adversely affect our business.
- If our members do not continue to utilize our payment cards, our results of operations, business, and prospects would be materially adversely affected.
- Cyber-attacks, including ransomware attacks, or other privacy or data security incidents could materially adversely impact our business.
- Fraudulent and other illegal activity involving our products and services could lead to financial and reputational damage to us and reduce the use and acceptance of our products and services.
- We rely on software licensed from third parties that may be difficult to replace or that could cause errors or failures of our technology platforms that could lead to lost customers or harm to our reputation.
- Developing and implementing new and updated applications, features, and services for our technology platforms may be more difficult than expected, may take longer and cost more than expected, or may result in the platforms not operating as expected.
- Any disruption of service at our facilities, our third-party data centers, or our cloud service providers could interrupt or delay our customers’ access to our products and services.
- Our technology platforms may link to or utilize open source software, and any failure to comply with the terms of one or more of these open source licenses could negatively affect our business.
- The healthcare regulatory and political framework is uncertain and evolving, and we cannot predict the effect that further healthcare reform and other changes in government programs may have on our business, financial condition, or results of operations.
- Changes in applicable federal and state laws relating to HSAs and other CDBs could materially adversely affect our business.
- We are subject to privacy regulations, including regarding the access, use, and disclosure of personally identifiable information. If we or any of our third-party service providers experience a privacy breach, it could result in substantial financial and reputational harm, including possible criminal and civil penalties.
- Legislative, regulatory, and legal developments involving taxes could adversely affect our results of operations and cash flows.
- Changes in laws and regulations relating to interchange fees on payment card transactions could adversely affect our revenue and results of operations.
- Failure to comply with, or changes in, payment card industry, credit card association or other network rules or standards set by Visa or MasterCard, or changes in card association and debit network fees or products or interchange rates, could materially adversely affect us.
- We are subject to complex regulation, and any compliance failures or regulatory action could adversely affect our business.
- If we are unable to meet or exceed the net worth test required by the IRS, we could be unable to maintain our non-bank custodian status.
- Any failure to offer high-quality customer support services could adversely affect our relationships with our members, Clients, and Network Partners and our operating results.
- We rely on our management team and team members and our business could be harmed if we are unable to retain qualified personnel.
- If we cannot maintain our corporate culture as we grow, we could lose the innovation, teamwork, passion, and focus on execution that we believe contribute to our success.
- If our Network Partners choose to partner with other providers of, or otherwise reduce offering or cease to offer, our products and services, our business could be materially and adversely affected.
- A change in relationship with any of our bank identification number sponsors, or the failure by these sponsors to comply with certain banking regulations, could materially and adversely affect our business.
- Replacing our third-party service providers would be difficult and disruptive to our business.
- Our acquisition strategy may not be successful.
- Failure to manage future growth effectively could have a material adverse effect on our business, financial condition, and results of operations.
- We may not accurately estimate the impact on our business of developing, introducing, and updating new and existing products and services.
- We may need to record write-downs from future impairments of identified intangible assets and goodwill.
- Our substantial debt could limit our ability to fund operations, expose us to interest rate volatility, limit our ability to raise additional capital and have a material adverse effect on our ability to fulfill our obligations under our Credit Agreement and Indenture and to our Network Partners, Clients and members.
- Provisions in our charter documents and under Delaware law could discourage a takeover that stockholders may consider favorable.
- The exclusive forum provision in our amended and restated certificate of incorporation could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or team members.
Management Discussion
- Certain reclassifications have been made to prior year amounts to conform to the current year presentation. The reclassifications relate primarily to recordkeeping and advisory fees associated with HSA investments of $25.6 million, $21.8 million, and $16.7 million for the fiscal years ended January 31, 2024, 2023, and 2022, respectively, which were reclassified from custodial revenue to service revenue to better align our financial statement presentation with the underlying drivers of our revenue streams. We also reclassified certain immaterial personnel-related costs from custodial costs to service costs or general and administrative costs. The reclassifications had no impact on our total revenue, income (loss) from operations, net income (loss), cash flows, or stockholders' equity.