# Software companies with customer concentration and weakening moats

[Canonical page](https://portraitresearch.com/blog/software-companies-with-customer-concentration-and-weakening-moats/)

By [Portrait Research](https://portraitresearch.com/about/)

Published: 2026-09-03

Updated: 2026-10-03

A Mosaic research example examining customer concentration and competitive pressure across ten software businesses, with company disclosures and research limitations.

This is ten software companies that came up when I ran a mosaic framework searching for software companies with high customer concentration, rising competition and narrowing moats.

### 1\. Fair Isaac Corporation (FICO)

- **Business:** Sells B2B credit-scoring solutions (the FICO Score, incl. Score 10/10T) plus decisioning and analytics software. *(FICO FY2025 10-K)*
- **Customer concentration:** The three consumer-reporting bureaus (Experian, TransUnion, Equifax) were 51% of FY2025 revenue and 63–64% in the two most recent FY2026 quarters, each individually >10%. *(FICO FY2025 10-K; FY2026 Q2/Q3 10-Qs)*
- **Competition:** VantageScore — the bureaus' own JV product — is priced ~$1/score vs. FICO's ~$65 all-in, with TransUnion's mortgage-inquiry usage rising from <5% to ~30% within 2026. *(FICO FY2025 10-K; TransUnion Q2 2026 earnings call)*

### 2\. Upstart Holdings, Inc. (UPST)

- **Business:** Operates a cloud-based AI lending marketplace (underwriting/credit decisioning) for banks and credit unions, chiefly unsecured personal loans. *(UPST FY2025 10-K)*
- **Customer concentration:** One lending partner ("Customer A") was 33% of FY2025 revenue, and the top three partners were 61% of revenue / 83% of originations. *(UPST FY2025 10-K)*
- **Competition:** Competes with in-house bank models, FICO-based decisioning, and rivals like Pagaya, Zest AI, Open Lending and Blend; WSFS wound down/divested its Upstart program in 2025. *(UPST FY2025 10-K; WSFS FY2025 10-K)*

### 3\. Innodata Inc. (INOD)

- **Business:** Provides AI training/post-training data, model evaluation, alignment/safety, and AI-enabled data platforms (DDS segment). *(Innodata FY2025 10-K)*
- **Customer concentration:** One unnamed DDS customer was ~58% of FY2025 revenue (48% in FY2024); 63% of receivables sat with a single customer at year-end. *(Innodata FY2025 10-K)*
- **Competition:** Names Appen, CloudFactory, Surge AI, Scale AI, Turing and Mercor as direct rivals, with largely at-will contracts (30–90 day termination). *(Innodata FY2025 10-K)*

### 4\. DLocal Limited (DLO)

- **Business:** Single-platform ("One dLocal") cross-border payments infrastructure — pay-ins and pay-outs for global enterprise merchants across 44 emerging markets. *(DLO FY2025 20-F; company primer)*
- **Customer concentration:** Top 10 merchants were 61% of FY2025 revenue (60–62% over three years), with two customers each individually >10%. *(DLO FY2025 20-F)*
- **Competition:** Competes with Adyen, Stripe, Nuvei, EBANX, PayU and Rapyd (Adyen's own primer groups dLocal with cross-border specialists); former parent AstroPay became a direct competitor in 2025. *(DLO FY2025 20-F; Adyen company primer)*

### 5\. Harmonic Inc. (HLIT)

- **Business:** Sells software-based broadband access (cOS virtualized CMTS) and video-delivery solutions to cable/telco operators. *(HLIT FY2025 10-K)*
- **Customer concentration:** One customer was 54% of FY2025 revenue and the top 10 were 84%; the Q3 10-Q names Comcast as the largest (39–43%). *(HLIT FY2025 10-K; HLIT Q3 2025 10-Q)*
- **Competition:** Faces Cisco (cBR-8), CommScope/ARRIS, Casa Systems, Nokia and Vecima — whose ENTRA vCMTS recently won Cox, a live displacement in the same category. *(HLIT company primer; Vecima Networks Q4 2025 earnings call)*

### 6\. Fractal Analytics Limited (FRACTAL)

- **Business:** India-based enterprise AI/analytics services and SaaS company (Fractal.ai services segment plus Fractal alpha products like Cogentiq and Asper.ai). *(Fractal Analytics Annual Report 2026; company primer)*
- **Customer concentration:** No single customer exceeds 20% (Customer A was ~7% in FY2026), but the Fractal.ai segment's top-10 customers were >50% of segment revenue (54.6% in FY2024) — clearing the top-10 gate. *(Fractal Analytics Annual Report 2026)*
- **Competition:** Competes with GSIs (Accenture, TCS, Infosys, Cognizant) and analytics pure-plays (Tiger Analytics, LatentView, EXL); EXL's primer names Fractal as a competitor, but no deal-level displacement was found. *(Fractal company primer; EXL company primer)*

### 7\. BlackSky Technology Inc. (BKSY)

- **Business:** Delivers space-based imagery and geospatial intelligence via its Spectra software platform and Gen-3 satellite constellation. *(BKSY FY2025 10-K)*
- **Customer concentration:** "U.S. federal government and agencies" was 43% of FY2025 revenue (60% in FY2024), with the NRO the only named revenue-impacting customer. *(BKSY FY2025 10-K; BKSY FY2024 10-K)*
- **Competition:** Rivals include Planet Labs, Satellogic, Airbus, Maxar and ICEYE/Capella; Planet's own 10-K names BlackSky, and Satellogic signed a Maxar/Vantor distribution deal. *(Planet Labs FY2025 10-K; Satellogic FY2025 10-K)*

### 8\. Tenable Holdings, Inc. (TENB)

- **Business:** Cybersecurity software vendor — exposure/vulnerability management (Nessus, Tenable One, Cloud Security, Identity Exposure), sold ~94% through channel partners. *(TENB FY2025 10-K)*
- **Customer concentration:** Distributor Ingram Micro was 32% of FY2025 revenue (34%/36% prior years); no single end-user customer exceeded 2%. *(TENB FY2025 10-K)*
- **Competition:** Competes with Qualys, Rapid7, CrowdStrike, Microsoft and Wiz; non-exclusive channel means distributors "may have stronger relationships with our competitors." *(TENB FY2025 10-K; TENB Q3 2025 earnings call)*

### 9\. Opera Limited (OPRA)

- **Business:** Develops web browsers (Opera One, Opera GX, Opera Mini) monetized mainly through search-referral and advertising revenue. *(OPRA FY2025 20-F; company primer)*
- **Customer concentration:** Google ("Customer group 1"), Opera's search-distribution partner, was ~33% of FY2025 revenue. *(OPRA FY2025 20-F)*
- **Competition:** Google Chrome, Apple Safari, Microsoft Edge and Samsung Internet dominate OS/device-level default distribution — and Google is simultaneously Opera's largest partner and a browser rival. *(OPRA FY2025 20-F; company primer)*

### 10\. KRAFTON, Inc. (A259960)

- **Business:** South Korean video-game developer/publisher built around the PUBG franchise (PUBG Mobile and PUBG: BATTLEGROUNDS). *(KRAFTON Annual Report 2025; company primer)*
- **Customer concentration:** "Major customer A" (inferred to be Tencent, the PUBG Mobile publisher) was ~41.6% of FY2025 revenue and ~51.1% in FY2024. *(KRAFTON Annual Report 2025)*
- **Competition:** Tencent's own Delta Force Mobile and Garena's Free Fire compete directly — and Tencent both licenses PUBG in China and publishes the rival Delta Force in-house. *(KRAFTON Q3/Q4 2025 earnings calls; Tencent Q4 2025 earnings call)*

## Sources and research method

Selected public issuer filings are linked below for the reporting periods discussed. Company primers, licensed transcripts, inference about unnamed customers and subsequent quarterly disclosures are separate evidence. This list is not a verification of every figure or competitive claim.

- [Fair Isaac FY2025 Form 10-K](https://www.sec.gov/Archives/edgar/data/814547/000081454725000030/fico-20250930.htm)
- [Upstart FY2025 Form 10-K](https://www.sec.gov/Archives/edgar/data/1647639/000164763926000027/upst-20251231.htm)
- [Innodata FY2025 Form 10-K](https://www.sec.gov/Archives/edgar/data/903651/000110465926020655/inod-20251231x10k.htm)
- [dLocal FY2025 Form 20-F](https://www.sec.gov/Archives/edgar/data/1846832/000207097926000113/dlo-20251231.htm)
- [Harmonic FY2025 Form 10-K](https://www.sec.gov/Archives/edgar/data/851310/000119312526067506/hlit-20251231.htm)
- [Fractal FY2025–26 annual report](https://fractal.ai/annual-report-digital/)
- [BlackSky FY2025 Form 10-K](https://www.sec.gov/Archives/edgar/data/1753539/000175353926000032/bksy-20251231.htm)
- [Tenable FY2025 Form 10-K](https://www.sec.gov/Archives/edgar/data/1660280/000166028026000005/tenb-20251231.htm)
- [Opera FY2025 Form 20-F](https://www.sec.gov/Archives/edgar/data/1737450/000173745026000005/opra-20251231.htm)

Explore the documented workflow: [Research companies with Mosaic](https://portraitresearch.com/documentation/mosaic/research-companies/); [Backtesting limits](https://portraitresearch.com/documentation/mosaic/backtesting/); [Build a screen with AI](https://portraitresearch.com/documentation/screening/build-with-ai-assistant/).

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