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FLEXFlex Ltd.

Technology · Electronic Components · Nasdaq
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The 10-K against last year's

391 changes: 109 added, 107 removed, 160 reworded, 15 quiet changes

10-K May 20, 2026 vs May 21, 2025
Risk FactorsRedline ↓
58.2%
of the text changed · 16,523 words now
32.8%
of the text changed · 9,742 words now
Legal ProceedingsRedline ↓
22.6%
of the text changed · 724 words now
Accounting PoliciesRedline ↓
17.8%
of the text changed · 5,680 words now

10-K 0000866374-26-000012 (2026-05-20) vs 10-K 0000866374-25-000027 (2025-05-21)

The redline

The paragraph that changed most in each section

Marked against last year's 10-K: cut words struck through, new words highlighted and underlined.

Risk Factors 363 words changed in this paragraph; it is 34% similar to last year's version.
The Changes in U.S. and foreign government policies, including those relating to trade, sanctions, information security, data privacy, national security, and foreign investment, may affect the attractiveness of our services to customers and our ability to conduct business with certain customers can be affected by changes in U.S. and other countries' policies, including regarding trade. or suppliers. We have significant operations located in China, which have been in the past, been, and could in the future continue to be, adversely affected by evolving laws, regulations and policies, including with regard to import and export tariffs and restrictions, and information security and privacy, as well as changes in the political regulations, and geopolitical environment developments involving China. U.S.-China bilateral trade relations remain uncertain. The U.S.’s various trade actions, including imposing tariffs on certain goods imported from China or deemed to be of Chinese origin, as well as the potential for new tariffs, trade embargoes or sanctions by the U.S., and countermeasures imposed by China in response, have, in the past adversely affected, and could in the future, depending on their duration and implementation as well as our ability to mitigate their impact, adversely affect our business, including in the form of increased cost of goods sold, decreased margins, increased pricing for customers, and reduced sales. Moreover, we We could be subject to reputational harm if any of our customers, former customers or vendors were subject to U.S. sanctions or if our customers, former customers or vendors did business with sanctioned countries. entities or countries or otherwise violated applicable sanctions or export control laws. Furthermore, regional conflicts, including the conflicts in Ukraine and the Middle East, including the conflict in Israel and recent U.S. military operations in Iran, and tension between China and Taiwan, could result in sanctions, regional market instability, increased energy and transportation costs, supply chain disruptions, and other adverse regional and global financial and economic conditions, any of which can impact the demand for, or our ability to sell, our products and services in the impacted regions. Escalation of hostilities involving Iran, Israel, and the United States or regional proxy groups could adversely affect regional stability, threaten critical infrastructure such as data centers, impair access to ports and transportation routes including the Strait of Hormuz, and increase fuel, energy, freight, insurance, and security costs. In addition, expanded sanctions, export controls, or other governmental measures affecting the region could impair our ability to conduct business, collect receivables, or repatriate funds. In particular, geopolitical changes in China-Taiwan relations could disrupt the operations of several companies in Taiwan that are critical to the global supply of semiconductors and other electronic components on which many of our customers depend. depend, and any escalation of tensions could materially affect our supply chain and operations.

Source: Item 1A, 10-K 0000866374-26-000012 vs Item 1A, 10-K 0000866374-25-000027

MD&A 276 words changed in this paragraph; it is 45% similar to last year's version.
Net sales for the fiscal year ended March 31, 2025 2026 totaled $25.8 $27.9 billion, representing a decrease an increase of approximately $0.6 $2.1 billion, or 2%, 8%, from $26.4 $25.8 billion for the fiscal year ended March 31, 2024. 2025. Net sales for our FAS ITS segment increased decreased $0.2 billion, or 1%, 2%, from fiscal year 2024, 2025, mainly due to a 1% increase in our CEC business as strength in cloud outweighed softer demand in non-cloud. In addition, the CEC business benefited from an approximate $1 billion increase in customer buy-sell activity, which increases gross profit, but is accounted for as a reduction of the transaction price, and therefore, excluded from net sales. The results of the FAS segment also reflected a 15% increase in our Consumer Devices business from stronger demand, offset by a 4% 9% decrease in our Lifestyle business as demand weakened in consumer end markets. This was offset by a 6% increase in our Communications business due to softer stronger demand. Net sales in our FRS RMS segment decreased $0.8 increased $0.5 billion, or 6%, 5%, from fiscal year 2024, 2025, driven primarily by a decrease an increase in net sales of 10% 13% in our Industrial business which was driven by weaker stronger demand and the contribution from our acquisition of the manufacturing facility in renewables, clean energy and industrial devices Orangeburg, South Carolina in February 2025. Additionally, revenue from our Healthcare business increased by 5% driven by higher demand for medical equipment. This was partially offset by strong growth and the Crown acquisition in critical power offerings, a 3% 2% decrease in our Automotive business, and a 3% decrease business due to weaker demand. Net sales in our Health Solution business, primarily CPI segment increased by $1.8 billion, or 38% from fiscal year 2025, driven by softening a 29% increase in our Cloud and Cooling business and 61% growth in our Power business. The overall growth in CPI is primarily related to increased demand in medical equipment, partially offset by increased demand for medical devices. The factors described above include the impact of certain customers transitioning data center market and $0.2 billion related contributions from point acquisitions in time to over time revenue recognition which increased net sales by approximately 1% for the year ended March 31, 2025. This transition also contributed to an increase in contract assets as of March 31, 2025. United States and Poland.

Source: Item 7, 10-K 0000866374-26-000012 vs Item 7, 10-K 0000866374-25-000027

Legal Proceedings 165 words changed in this paragraph; it is 48% similar to last year's version.
A foreign Tax Authority ("Tax Authority") (“Tax Authority”) had assessed a cumulative total of approximately $285 $167 million in taxes owed for multiple Flex legal entities within its jurisdiction for various fiscal years ranging from fiscal year 2010 through fiscal year 2020. The assessed amounts related to the denial of certain deductible intercompany payments and taxability of income earned outside such jurisdiction. In the quarter ended March 31, 2025, approximately $118 million of the approximate $285 million assessment was abated by the Tax Authority, leaving approximately $167 million remaining. The Company disagrees disagreed with the Tax Authority’s remaining assessments and is was actively contesting the assessments through the administrative and judicial processes. During the third quarter of the fiscal year ended March 31, 2026, the Company and the Tax Authority agreed to a $50 million settlement covering all open fiscal years and all assessed amounts. The Company had previously expensed $31 million and paid $30 million to the Tax Authority in prior fiscal years and agreed to make an additional $20 million cash payment to the Tax Authority subsequent to the execution of a definitive settlement agreement, which resulted in a charge to income tax expense of $19 million in the third quarter of the fiscal year ended March 31, 2026. The definitive settlement agreement was executed on February 3, 2026 and the $20 million cash payment was made in the fourth quarter of the fiscal year ending March 31, 2026.

Source: Item 3, via Note 14 – COMMITMENTS AND CONTINGENCIES, 10-K 0000866374-26-000012 vs Item 3, via Note 14 – COMMITMENTS AND CONTINGENCIES, 10-K 0000866374-25-000027

Accounting Policies 119 words changed in this paragraph; it is 47% similar to last year's version.
In December 2023, the FASB issued ASU 2023-09 "Income Taxes (Topic 740): Improvements to Income Tax Disclosures", which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash income taxes paid both in the U.S. and foreign jurisdictions. This standard improves the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the effective tax rate reconciliation and income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. The guidance adoption of this new standard did not have a material impact on the Company's consolidated financial statements and was adopted on a prospective basis as it is effective for the Company Company, beginning in the fourth quarter of fiscal year 2026. The Company expects the new guidance will have an immaterial impact on its consolidated financial statements, and intends to adopt the guidance prospectively when it becomes effective in the fourth quarter of fiscal year 2026. For additional information, see note 15 - "Income Taxes."

Source: Item 8, Note 2 – SUMMARY OF ACCOUNTING POLICIES, 10-K 0000866374-26-000012 vs Item 8, Note 2 – SUMMARY OF ACCOUNTING POLICIES, 10-K 0000866374-25-000027

Every change, by type

Sentences and paragraphs added, removed or reworded

Sentences and paragraphs of FLEX's Risk Factors and MD&A, 10-K 2026-05-20 against 10-K 2025-05-21. Each links to the text at sec.gov.

AddedRisk Factors
•The planned spin-off of our Cloud and Power Infrastructure businesses may not be completed on the terms or timeline currently contemplated, if at all, and involves significant costs and risks.

Read it in 10-K 2026-05-20 at sec.gov ↗

AddedRisk Factors
•Tariffs, trade restrictions, export controls, and changes in trade policy, including heightened trade volatility and uncertainty regarding trade agreements, have in the past adversely affected, and could in the future adversely affect, our business, results of operations, and financial condition.

Read it in 10-K 2026-05-20 at sec.gov ↗

AddedRisk Factors
•Investments in our Cloud and Power Infrastructure businesses may adversely affect our margins, and demand for these offerings is subject to factors outside our control.

Read it in 10-K 2026-05-20 at sec.gov ↗

AddedRisk Factors
•Our industry is highly competitive, and customers may in-source production or modify sourcing strategies; our Cloud and Power Infrastructure businesses are subject to rapid technological change which requires that we make continuing investments to remain competitive.

Read it in 10-K 2026-05-20 at sec.gov ↗

AddedRisk Factors
•A breach of our IT or physical security systems, or a cybersecurity incident affecting our operations, products, or third parties upon which we rely, could materially disrupt our business, damage our reputation, and expose us to significant costs and liability.

Read it in 10-K 2026-05-20 at sec.gov ↗

Show the other 16
AddedRisk Factors
•Risks and uncertainties related to the development and use of artificial intelligence ("AI") could harm our business, damage our reputation, or give rise to legal or regulatory action.

Read it in 10-K 2026-05-20 at sec.gov ↗

AddedRisk Factors
•Evolving regulations relating to data center development, energy consumption, and utility infrastructure could adversely affect demand for our products and services.

Read it in 10-K 2026-05-20 at sec.gov ↗

AddedMD&A
The Company’s full suite of specialized capabilities includes design and engineering, supply chain, manufacturing, and integrated services, plus a portfolio of power and cooling products. Over time, we have built differentiated scale and expertise across both technology-driven and regulated markets, enabling us to support customers with increasingly complex product, infrastructure, and compliance requirements. We partner with customers across a diverse set of industries including data center, healthcare, industrial, automotive, communications, and lifestyle.

Read it in 10-K 2026-05-20 at sec.gov ↗

AddedMD&A
In the fourth quarter of fiscal year 2026, the Company changed how it reports its operating results to its Chief Operating Decision Maker (“CODM”), principally reflecting the growth of Flex’s data center‑related businesses. As a result, the Company reorganized its operating structure and established a new operating and reportable segment, Cloud and Power Infrastructure (“CPI”) and updated its former segments from Flex Agility Solutions and Flex Reliability Solutions to Integrated Technology Solutions (“ITS”) and Regulated Manufacturing Solutions (“RMS”). Certain prior‑period segment information has been recast to conform to the current presentation. The determination of the separate operating and reportable segments is based on several factors, including the nature of products and services, the nature of production processes, customer base, delivery channels and similar economic characteristics. Refer to note 1 "Organization of the Company" to the consolidated financial statements in Item 8, "Financial Statements and Supplementary Data" for further details on the segment change that took place in the fourth quarter of fiscal year 2026.

Read it in 10-K 2026-05-20 at sec.gov ↗

AddedMD&A
◦Cloud and Cooling, integrated compute systems supporting power‑dense digital infrastructure deployments, and advanced liquid cooling solutions supporting higher-density, power-intensive rack architectures

Read it in 10-K 2026-05-20 at sec.gov ↗

AddedMD&A
◦Power, utility and facility‑level electrical infrastructure enabling reliable, scalable power delivery and high-density rack- and board-level power systems supporting power-intensive compute workloads

Read it in 10-K 2026-05-20 at sec.gov ↗

AddedMD&A
On May 5, 2026, we announced our intention to separate our CPI segment from Flex and into an independent, publicly traded company (“SpinCo”). The separation of CPI into SpinCo will create a separate publicly traded company focused on data center power, digital infrastructure and power, thermal and compute integration. The spin-off of CPI from Flex is expected to be completed in the first quarter of calendar 2027 and is subject to certain customary conditions, including, among others, the approval of Flex’s Board of Directors, shareholders, and the High Court of the Republic of Singapore and the SEC declaring SpinCo’s Form 10 registration statement effective. Subsequent to the spin-off of CPI from Flex, Flex will continue as an advanced manufacturing and supply chain solutions business consisting of our ITS and RMS segments. There can be no assurance that any spin-off transaction will ultimately occur or, if one does occur, of its terms or timing. See Item 1A, "Risk Factors - Planned Spin-off Risks—The planned spin-off of our Cloud and Power Infrastructure businesses may not be completed on the terms or timeline currently contemplated, if at all, and there is no guarantee that the spin-off, if completed, will achieve the intended financial, strategic, and operational benefits.".

Read it in 10-K 2026-05-20 at sec.gov ↗

AddedMD&A
During the fiscal year ended March 31, 2026, we recognized $51 million in asset impairments, inventory write-downs and other charges as a result of a missile strike on our Mukachevo, Ukraine facility in Western Ukraine on August 21, 2025. The missile strike represents an unusual and infrequent event as hostilities related to the Russian invasion of Ukraine have been primarily focused in Eastern Ukraine. The missile strike caused substantial physical damage and disrupted normal operations at the facility. In response, we activated contingency manufacturing plans and transitioned production to alternative facilities. As restoration activities progress in Mukachevo, we expect to incur additional immaterial near-term inefficiencies. The total $51 million expense is included in restructuring and impairment charges in the consolidated statements of operations. For further information, refer to Item 1A, "Risk Factors - Global economic conditions and geopolitical uncertainty have in the past adversely affected, and could in the future adversely affect, our business, results of operations, financial condition, and access to capital markets."

Read it in 10-K 2026-05-20 at sec.gov ↗

AddedMD&A
equipment, partially offset by increased demand for medical devices. Net sales for the CPI segment increased by $1.6 billion or 48% from $3.2 billion in fiscal year 2024. This was driven by a 58% increase in demand in the Cloud and Cooling business and 26% growth in our Power business, with a partial year contribution from the Crown acquisition.

Read it in 10-K 2026-05-20 at sec.gov ↗

AddedMD&A
Selling, general and administrative expenses ("SG&A") totaled $1.1 billion, during fiscal year 2026, compared to $904 million during fiscal year 2025, increasing by $148 million. The increase was primarily driven by an increase in labor and infrastructure costs in line with growth of the business as well as a $44 million increase in legal and other costs associated with portfolio optimization projects, including the anticipated spin-off of the CPI segment.

Read it in 10-K 2026-05-20 at sec.gov ↗

AddedMD&A
Fiscal Year Ended March 31, 2026 2025 Amount Effective Tax Rate Amount Effective Tax Rate (In millions, except percentages) Provision for (benefit from) income taxes $ 263 23.0% $ 185 18.1%

Read it in 10-K 2026-05-20 at sec.gov ↗

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