Frequency Electronics (FEIM) risk factors, FY2025 10-K

Frequency Electronics's FY2025 10-K, filed Jul 18, 2025, lists 14 risk factors in 4 groups. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
144 groups
Section length
4k wordsItem 1A

Frequency Electronics's biggest risks in the FY2025 10-K

  • Customer concentration is high, with Northrop Grumman exceeding 10% of fiscal 2025 consolidated revenues.
  • The aging workforce carries a median age of 51 and 14-year tenure.
  • Complex manufacturing and government contracting dominate the risk profile.

The risks most specific to Frequency Electronics

  • Risks Related to Business Operations and Our Industry

    We depend heavily on a small number of larger customers for a substantial portion of our business. The loss of one or more of our largest customers or programs could have a material adverse effect on our business, financial position, results of operations and/or cash flows

    Northrop Grumman accounted for more than 10% of consolidated revenues in fiscal year 2025, and losing major customers or U.S. Government programs would severely harm our business.

  • Risks Related to Business Operations and Our Industry

    We use estimates when accounting for contracts. Changes in estimated contract revenues and/or changes in costs can affect our profitability and our overall financial position

    Contract accounting requires management estimates for revenues, costs, and potential technical or schedule issues that can directly impact profitability.

  • Risks Related to Business Operations and Our Industry

    We face substantial competition in our industry, and if we fail to win future business or experience undue pricing pressures as a result of such competition, our business, financial position, results of operations and/or cash flows could be adversely affected

    Larger competitors with greater financial and R&D resources create intense pricing pressure and competition for our high-performance products.

  • Risks Related to Business Operations and Our Industry

    Our products, which are often incorporated into larger systems, are technologically complex and require state-of-the-art technology and manufacturing expertise. Any defect in the design, materials or workmanship with respect to our product could result in system failure

    Undetected design, material, or workmanship defects in our technologically complex products can cause system failures and loss of mission capability.

  • Risks Related to Business Operations and Our Industry

    The success of our business and financial performance is dependent on our ability to identify, attract, train and retain a highly skilled workforce

    Our products rely on experienced engineers, physicists, and manufacturing personnel who require lengthy in-house training, with an average employee tenure of 14 years and median age of 51.

  • Risks Related to Legal, Regulatory and Compliance Matters

    Our failure to comply with laws, regulations and/or terms we are subject to could adversely affect our business

    We operate in a highly regulated industry subject to routine audits and reviews by the U.S. Government regarding our contract performance, cost structure, and compliance.

  • Risks Related to Information Technology and Intellectual Property

    Our business could be adversely impacted by significant cybersecurity attacks

    As a defense industry contractor, we have experienced past cybersecurity attacks and face ongoing risks of intellectual property theft, operational disruption, and ransomware.

  • Risks Related to Our Common Stock

    If significant existing stockholders sell large numbers of shares of our common stock, our common stock price could decline

    Five individuals or entities hold approximately 41.2% of our outstanding common stock, and sales by them could depress our stock price.

All 14 risk factors

Headings as the filing states them, in filing order.

Risks Related to Business Operations and Our Industry

  1. 01We depend heavily on a small number of larger customers for a substantial portion of our business. The loss of one or more of our largest customers or programs could have a material adverse effect on our business, financial position, results of operations and/or cash flows
  2. 02We use estimates when accounting for contracts. Changes in estimated contract revenues and/or changes in costs can affect our profitability and our overall financial position
  3. 03We face substantial competition in our industry, and if we fail to win future business or experience undue pricing pressures as a result of such competition, our business, financial position, results of operations and/or cash flows could be adversely affected
  4. 04Our products, which are often incorporated into larger systems, are technologically complex and require state-of-the-art technology and manufacturing expertise. Any defect in the design, materials or workmanship with respect to our product could result in system failure
  5. 05The success of our business and financial performance is dependent on our ability to identify, attract, train and retain a highly skilled workforce
  6. 06Adverse changes in global economic or geopolitical conditions may adversely affect business operations and financial condition
  7. 07We face various risks related to health epidemics, pandemics and similar outbreaks, which may have material adverse effects on our business, financial position, results of operations and/or cash flows
  8. 08Our business could be adversely impacted by various external disruptions

Risks Related to Legal, Regulatory and Compliance Matters

  1. 09Our failure to comply with laws, regulations and/or terms we are subject to could adversely affect our business
  2. 10We are subject to various investigations, claims, disputes, enforcement actions, litigation, and other legal proceedings that could ultimately be resolved against us

Risks Related to Information Technology and Intellectual Property

  1. 11Our business could be adversely impacted by significant cybersecurity attacks
  2. 12Claims by third parties that our products infringe their intellectual property could result in costly disputes and/or require us to develop alternate designs

Risks Related to Our Common Stock

  1. 13Our stock price may continue to be volatile
  2. 14If significant existing stockholders sell large numbers of shares of our common stock, our common stock price could decline

Other Frequency Electronics 10-Ks

  • FY2026 10-K risk factors
    14 risks6 reworded

    Legal and regulatory exposure remains prominent, with privacy and cybersecurity issues added to the legal-proceedings examples.

    Filed Jul 17, 2026

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.