Sphere 3D Corp. — financial distress indicators
Financial-health summary
Sphere 3D Corp.'s reported numbers place it in the 'Weak' financial-health band (distress score 52/100). The main indicators are consecutive annual losses, equity eroded by >20% in a year and deep share-price drawdown.
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Net loss in each of the last two years.
Sustained losses at a lender usually mean credit losses are outrunning provisions — a risk-management failure.
Book equity changed -41% YoY.
Fast equity erosion (losses, unrealised bond losses, write-downs) was the signature of the 2023 U.S. regional-bank failures.
Price is -73% from its 52-week high.
For financial firms a share-price run often precedes a deposit or funding run (confidence channel).
Revenue changed -33% YoY.
Shrinking net revenue (interest margin, fees, premiums) weakens the capacity to absorb losses.
Annualised volatility is 140%.
High equity volatility raises the market-implied default probability.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- No material mitigating factors found in the available data.
📰 Recent news scan
- Sphere 3D Completes Rebrand as DarkHorse Technologies Inc., Marking Next Phase of Power-First AI Infrastructure StrategyYahoo Finance · 2026-09-16
- Sphere 3D Corp. Adopts Limited-Duration Shareholder Rights AgreementYahoo Finance · 2026-08-10
- Inside Sphere 3D’s AI data center plansYahoo Finance · 2026-06-04
- Medallion Financial Corp. Urges Shareholders to Vote for Proven PerformanceYahoo Finance · 2026-06-02
- Sphere 3D shareholders approve Cathedra Bitcoin combinationYahoo Finance · 2026-05-21
- Brookfield Asset Management (BAM) Q1 Earnings Top EstimatesYahoo Finance · 2026-05-08
⚖️ U.S. legal pathway — broker-dealer liquidation
- Stockbrokers and commodity brokers cannot reorganise under Chapter 11 (§109(d)); they liquidate under Chapter 7 (subchapters III/IV) or in a SIPA proceeding.
- SIPC protects customer accounts up to $500,000 (including $250,000 cash) for missing customer property — not market losses.
- Net-capital rule (SEC Rule 15c3-1) breaches are the regulatory early warning.
Frequently asked questions
What do Sphere 3D Corp.'s financial-health indicators show?
As of 2026-10-08, Sphere 3D Corp.'s public financial data places it in the 'Weak' band with a distress score of 52/100, driven by consecutive annual losses, equity eroded by >20% in a year and deep share-price drawdown. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is Sphere 3D Corp.'s financial distress score?
52/100 ('Weak').
What works in Sphere 3D Corp.'s favour?
No material mitigating factors were found in the available data.
How are shareholders treated if a company enters insolvency?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.
Other Bank & Finance companies with distress indicators
- CaliberCos Inc. (CWD)Very weak 79/100
- loanDepot, Inc. (LDI)Weak 69/100
- Pineapple Financial Inc. (PAPL)Weak 69/100
- TeraWulf Inc. (WULF)Weak 68/100
- SHF Holdings, Inc. (SHFS)Weak 67/100
- Streamex Corp. (STEX)Weak 67/100
Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.