Credo Technology Group Holding (CRDO) risk factors, FY2026 10-K

Risks Related to Our Business

1. 01We depend on a limited number of customers for a substantial portion of our revenue. The loss of, or a significant reduction in sales to, one or more of our major customers could negatively impact our revenue and operating results38% rewritten
2. 02We do not have long-term purchase commitments from our customers, and if our customers cancel or change their purchase orders, our revenue and operating results could suffer
3. 03We face macroeconomic risks, including, but not limited to, recessions, inflation, stagflation and other economic conditions51% rewritten
4. 04Changes in global trade policies, including tariffs, sanctions and trade barriers may adversely affect our business, financial condition, results of operations and prospectsNew
5. 05We have incurred net losses in prior periods and have an accumulated deficit, and we may incur additional net losses in the future
6. 06We are subject to order and shipment uncertainties, and differences between our estimates of customer demand and product mix and our actual results could negatively affect our business, financial condition and results of operations
7. 07We face intense competition and expect competition to increase in the future42% rewritten
8. 08We may incur substantial expenses to develop, market and qualify products that may not generate any revenue64% rewritten
9. 09two to three years, so even after securing a design win, we may experience delays in generating revenue from our products as a result of the lengthy development cycleNew
10. 10We rely on a limited number of third parties to manufacture, assemble and test our products, and the failure to successfully manage our relationships with such third-party contractors could adversely affect our revenue and operating results
11. 11The success of our products is dependent in part on our customers’ ability to develop products that achieve market acceptance, and our customers may fail to do so82% rewritten
12. 12raw material price fluctuations could have a material adverse effect on our business, financial condition and results of operationsNew
13. 13result in reduced sales and profits, contract penalties or terminations and damage to our customer relationshipsNew
14. 14We rely on the ability to use and the success of third-party technologies to develop our products, and our inability to use such technologies in the future would harm our ability to remain competitive
15. 15We may not be able to meet manufacturing yields that allow us to meet customer demand and maintain our gross margins
16. 16We may be unable to develop or maintain our relationships with industry and technology leaders to enhance our product offerings
17. 17Average selling prices of our products generally decrease over time, which could negatively impact our revenue and gross margins
18. 18Our gross margins may fluctuate due to a variety of factors
19. 19We may not receive timely payments from our customers, which could adversely affect our business, financial condition and results of operations21% rewritten
20. 20We may not be able to accurately predict our future capital needs, and we may not be able to obtain additional financing to fund our operations
21. 21We may not be able to effectively manage our growth without incurring significant expenditures necessary to address the additional operational and control requirements of our growth
22. 22If we fail to retain any distributors upon which we rely to assist in selling our products, or if any of these parties fail to perform as expected, it could reduce our future sales
23. 23Changes in environmental laws or regulations, as well as sustainability initiatives, could impose substantial costs and may adversely affect our businessNew
24. 24Changes in taxation, our tax rates or exposure to additional tax liabilities or assessments could affect our profitability, and audits by tax authorities could result in additional tax payments86% rewritten
25. 25customers may be vulnerable to damage, disruptions or shutdowns due to errors, negligence or malfeasance by employees, contractors, or others who have access to these systemsNew
26. 26Our business may be impacted by information technology system failures or network disruptions, and lack of redundancy33% rewritten

Risks Related to Our Industry

1. 27Our target customer and product markets may not grow or develop as we currently expect
2. 28The market demand for our semiconductor solutions may not sufficiently develop or may develop more slowly than expected56% rewritten
3. 29Our business is dependent on continued capital expenditures by data centers and service providers, and any downturn that such centers or providers experience could negatively impact our business, financial condition and results of operations
4. 30We may be unable to make the substantial and productive research and development investments, which are required for our business to remain competitive
5. 31The general compute and Artificial Intelligence and Machine Learning (AI/ML) infrastructure market is an emerging market that will depend on the success of generative AI technologies, and this market may not develop as we currently expect, including due to regulatory uncertainty
6. 32We are subject to the cyclical nature of the semiconductor industry which is undergoing significant change due to artificial intelligenceNew
7. 33Social and environmental responsibility regulations, policies and provisions, as well as customer and investor demands, may make our supply chain more complex and may adversely affect our relationships with customers and investors60% rewritten

Risks Related to Our International Operations

1. 34Our business, financial condition and results of operations could be adversely affected by worldwide economic conditions, as well as political and economic conditions in the countries in which we conduct business
2. 35Our global operations expose us to numerous legal and regulatory requirements and failure to comply with such requirements, including unexpected changes to such requirements, could adversely affect our results of operations
3. 36We are subject to government regulation, including import, export and economic sanctions laws and regulations that may expose us to liability and increase our costs
4. 37use of our products or solutions or limitation on our ability to export or sell our products and solutions would likely adversely affect our business, financial condition and results of operationsNew
5. 38Our business is affected by new U.S. government regulations restricting outbound investments in China
6. 39As implemented by the Outbound Investment Rule, the new framework imposes notification requirements and prohibitions on specified investments by U.S. persons in the semiconductor and microelectronics sector, quantum information technologies, and artificial intelligence (AI) systems72% rewritten
7. 40We face significant economic and political risks associated with doing business in Taiwan, particularly due to the geopolitical tension between Taiwan and mainland China, that could negatively affect our business and the trading price of our ordinary shares
8. 41We generated 28% of our revenue in Hong Kong in fiscal 2026, and 2% of our assets (by book value) were held in Hong Kong as of fiscal 2026. Accordingly, political and economic conditions in Hong Kong and the surrounding region may directly affect our business
9. 42We could be adversely affected by violations of applicable anti-corruption laws or violations of our internal policies designed to ensure ethical business practices
10. 43Any failure to comply with foreign exchange registration requirements may expose us or our PRC resident beneficial owners or PRC participants of employee stock incentive plans to liability and penalties under PRC law
11. 44We are subject to fluctuations in exchange rates between and among the currencies of the countries in which we do business

Risks Related to Our Intellectual Property

1. 45We may face claims of intellectual property infringement, misappropriation or other violations, which could be time-consuming or costly to defend or settle, result in the loss of significant rights or harm our relationships with our customers or reputation in the industry
2. 46Any potential dispute involving patents or other intellectual property could affect our customers and vendors which could trigger our indemnification obligations to them and result in substantial expense to us28% rewritten
3. 47We also rely on trade secret laws, as well as confidentiality and non-disclosure and other contractual protections, to protect our proprietary know-howNew
4. 48A breach of our information technology systems or physical security systems, or any actual or perceived violation of privacy, data protection or cybersecurity laws, could harm our business and operating results
5. 49We use certain software governed by open-source licenses, which under certain circumstances could materially adversely affect our business, financial condition, operating results and cash flow

Risks Relating to Investments in Cayman Islands Companies

1. 50(a) shares of a surviving or consolidated company, or depository receipts in respect thereof; or
2. 51As a result of all of the above, public shareholders may have more difficulty in protecting their interests in the face of actions taken by management, members of the board of directors or controlling shareholders than they would as shareholders of a corporation incorporated in a jurisdiction in the United States
3. 52(ii) in original actions brought in the Cayman Islands, to impose liabilities against the Company predicated upon the civil liability provisions of the securities laws of the United States or any State, so far as liabilities imposed by those provisions are penal in nature
4. 53Provisions in our amended and restated memorandum and articles of association may have the effect of discouraging lawsuits against our directors and officers

Risks Related to Ownership of Our Ordinary Shares

1. 54Our share price may be volatile and may decline, resulting in a loss of some or all of your investment
2. 55Substantial future sales of our ordinary shares could cause the market price of our ordinary shares to decline25% rewritten
3. 56Our actual operating results may not meet our guidance and investor expectations, which would likely cause our share price to decline
4. 57If our estimates or judgments relating to our critical accounting policies are based on assumptions that change or prove to be incorrect, our results of operations could fall below expectations of securities analysts and investors, resulting in a decline in the market price of our ordinary shares
5. 58Our executive officers, directors and their affiliates, if they choose to act together, have the ability to control or significantly influence all matters submitted to shareholders for approval
6. 59Anti-takeover provisions in our organizational documents may discourage our acquisition by a third party, which could limit shareholders’ opportunity to sell their ordinary shares at a premium
7. 60If a United States person is treated as owning 10% or more of our outstanding equity, such holder may be subject to adverse U.S. federal income tax consequences63% rewritten
8. 61We have pursued, and may in the future pursue, mergers, acquisitions, investments in other companies and dispositions, which could adversely affect our results of operationsNew
9. 62We depend on our executive officers and other key employees, and the loss of one or more of these employees or an inability to attract or retain highly skilled employees could adversely affect our business
10. 63Catastrophic events may disrupt our business
11. 64Litigation and other legal proceedings may adversely affect our business
12. 65Market conditions and changing circumstances, some of which may be beyond our control, could impair our ability to access our existing cash, cash equivalents and investments and to timely pay key vendors and others
13. 66If we fail to maintain an effective system of disclosure controls and internal control over financial reporting, our ability to produce timely and accurate financial statements or comply with applicable regulations could be impaired