Going concern opinions: a 20-year market perspective
Uncover how audit risk has evolved across economic cycles, filer types and industries.
Understanding going concern trends isn’t just about tracking percentages. It’s about identifying patterns that signal structural risk, regulatory pressure and market shifts.
This report brings together 20 years of audited financial data, covering more than 6,700 annual reports in FY2025 alone. It explores how going concern rates have moved through the financial crisis, the post-pandemic environment and into today’s stabilizing market.
From filer type to industry exposure and repeat opinions, you’ll gain a data-backed view of where risk persists and where it is easing.
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Four trends shaping going concern risk
Across two decades of audited filings, four patterns hold across economic cycles. Read together they show more than how often opinions are issued: they reveal where risk clusters, why it lingers from one year to the next and what is shifting beneath the headline rate.
Going concern rates are stabilizing — but remain elevated historically
The FY2025 rate has fallen to 19.6%, continuing a post-pandemic decline. However, it still reflects a structurally higher risk environment compared to pre-crisis lows, showing that recovery is ongoing rather than complete.
Risk is heavily concentrated in smaller companies
Non-accelerated filers and smaller reporting companies account for the majority of going concern opinions, with a rate of 36% compared to just 0.3% for large accelerated filers. Company scale remains the strongest indicator of risk exposure.
Repeat opinions dominate the landscape
Over 70% of going concern opinions in FY2025 are repeats from the prior year. This highlights the persistence of financial distress and the challenge companies face in resolving underlying issues quickly.
Industry and market dynamics continue to reshape risk
Life Sciences leads in going concern rates, while industries such as Finance remain significantly lower. Meanwhile, the impact of SPAC activity has diminished but continues to influence trend patterns over the past decade.
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