LDOS · CIK 1336920
What Leidos Holdings, Inc. told the SEC could break it.
Leidos's disclosures are dominated by its dependence on a single customer: U.S. government contracts, as prime or subcontractor, generated 87% of fiscal 2025 revenue, leaving it exposed to federal budgets, appropriations, shutdowns, and procurement policy. Its contract mix adds execution risk — firm-fixed-price contracts were about 43% of revenue, capturing savings but exposing it to cost overruns and unbillable costs if it underestimates resources. It is also taking on integration and financing risk through its January 2026 agreement to acquire Entrust for $2.4 billion in cash, backed by a $1.4 billion 364-day bridge loan.
3 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Other disclosures
- firm-fixed-price contract cost-overrun exposuremedium
Firm-fixed-price contracts were ~43% of fiscal 2025 revenue; while they capture cost savings, they expose Leidos to cost-overrun risk and unbillable costs if it underestimates the resources to fulfill the contract.
“While FFP contracts allow us to benefit from cost savings, these contracts also increase our exposure to the risk of cost overruns. Revenues from FFP contracts represented approximately 43% of our total revenues for fiscal 2025.”
SEC filing →As of 2026 - Entrust acquisition and bridge financingmedium
On January 23, 2026, Leidos agreed to acquire Entrust for $2.4B cash, backed by a $1.4B 364-day bridge loan facility — bringing acquisition-integration and leverage/financing risk.
“On January 23, 2026, Leidos, Inc. entered into a stock purchase agreement to acquire all of the shares of Entrust for a purchase price of $2.4 billion in cash, subject to customary adjustments... In connection with the stock purchase agreement, we entered into an agreement with Citigroup Global Markets Inc., which provides for a senior unsecured 364-day bridge loan facility in an aggregate principal amount of $1.4 billion.”
SEC filing →As of 2026
Customer concentration
- U.S. Government (prime + subcontractor)high
Leidos generated 87% of fiscal 2025 revenue from U.S. government contracts (prime or subcontractor) — heavy concentration exposing it to federal budget/appropriations, shutdown and procurement-policy risk.
“With a focus on delivering mission-critical solutions, Leidos generated 87% of revenues for the fiscal year ended January 2, 2026, (“fiscal 2025”) from U.S. government contracts, either as a prime contractor or a subcontractor to others.”
SEC filing →As of 2026
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