This Biotech Leans on 1 Customer for 56% of Revenue, but There's a Catch

Investors should be cautious when a business relies too heavily on a single customer. If the relationship changes or ends, then it's usually not very fun to be a shareholder. It can take years for the company and stock to recover -- if a recovery can be achieved at all.

That's what makes the high concentration of revenue at Personalis (NASDAQ:PSNL) so potentially worrisome. The company leaned on its top customer for 56% of revenue in the first half of 2019. The top two customers generated 76% of revenue in that span.