§ Risk and sensitivity
Customer concentration
Glossary version 2026-07-12.v1 · reviewed July 12, 2026
revenue concentration
Dependence on a small number of customers for a large share of revenue. High concentration can make sales, pricing, and cash collection vulnerable to one customer’s decisions.
Customer concentration measures how much revenue or receivables depend on the largest customers. Concentration can be acceptable when contracts are durable and switching costs are high, but it raises bargaining power and renewal risk. Reports connect the disclosed customer shares to revenue, margins, receivables, and plausible contract-loss scenarios rather than treating concentration as a generic warning.