Target Hospitality Corp

The Company’s financial position, results of operations and cash flows are subject to various risks, many of which are not exclusively within the Company’s control and which may cause actual performance to differ materially from historical or projected future performance. “Item 1A. Risk Factors” of our 2023 Form 10-K includes a discussion of our risk factors. The information presented below updates, and should be read in conjunction with, the risk factors and information disclosed in our 2023 Form 10-K. Except as presented below, there have been no material changes from the risk factors described in our 2023 Form 10-K.

We depend on our most significant customer. The loss of our largest customer, or any one of our largest customers in any of our business segments, could adversely affect our results of operations.

As a result of the previously announced termination of the contract for the South Texas Family Residential Center in Dilley, Texas, we depend on our most significant customer. For the nine months ended September 30, 2024, our largest customer accounted for approximately 47% of our total revenue, and our five largest customers accounted for approximately 75% of our total revenue. For a more detailed explanation of our customers, see the “Item 1. Business” of our 2023 Form 10-K. The loss of our largest customer or any one of our largest customers in any of our business segments or a sustained decrease in demand by any of such customers could result in a substantial loss of revenues and could have a material adverse effect on our results of operations.