Envoy Medical, Inc. — financial distress indicators
Financial-health summary
Envoy Medical, Inc.'s reported numbers place it in the 'Watch' financial-health band (distress score 43/100). The main indicators are losses in each of the last 3 years, operations consume cash and cash runway under 24 months. In its favour: high insider/promoter ownership (40%) aligns management with survival.
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 income negative in 3 of 3 fiscal years.
Persistent losses erode equity and the capacity to absorb shocks.
Operating cash flow negative in 3 of the last 3 years.
A business that cannot fund itself from operations depends on external capital to survive.
Cash covers ~13 months of free-cash-flow burn.
Funding needs within two years make the company dependent on capital-market access.
Last price $0.66.
Below the $1 minimum-bid listing standard (Nasdaq Rule 5550(a)(2) / NYSE 802.01C); sustained breach leads to delisting and loss of capital-market access.
Operating margin fell from -5810% to -9241% in two years.
Sharp margin compression signals loss of pricing power or cost control.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- High insider/promoter ownership (40%) aligns management with survival.
📰 Recent news scan
- Envoy Medical Announces New Patents, Further Expanding Global Patent PortfolioYahoo Finance · 2026-09-22
- Envoy Medical to Present at the H.C. Wainwright 28th Annual Global Investment Conference on September 14th-16thYahoo Finance · 2026-09-02
- Envoy Medical, Inc. (COCH) Reports Q2 Loss, Misses Revenue EstimatesYahoo Finance · 2026-08-10
- Envoy Medical Surpasses Three-Month Visit Milestone for All 56 Patients in Pivotal Clinical TrialYahoo Finance · 2026-07-21
- EXCLUSIVE: Envoy Medical Hits Key Clinical Trial Milestone for Fully Implanted Ear ImplantYahoo Finance · 2026-07-21
- Envoy Medical Reports Positive 12-Month Data Showing Continued Improvement in Speech Perception in Study of First-of-Its-Kind Fully Implanted Cochlear ImplantYahoo Finance · 2026-07-14
⚖️ U.S. legal pathway — Title 11, U.S. Code
Which chapter would apply?
- Chapter 11 — reorganisation. Management usually stays in control as debtor-in-possession; the automatic stay (§362) halts collection; a plan must meet the best-interests test (§1129(a)(7)) and the absolute priority rule (§1129(b)) — creditors are paid before shareholders, who are frequently wiped out.
- Chapter 7 — liquidation. A trustee sells assets and distributes proceeds by statutory priority (§§507, 726).
- Subchapter V (“Chapter 5”) is a fast track for small-business debtors under a statutory debt cap, but SEC-reporting companies are excluded (§101(51D)) — so it rarely applies to listed companies.
What typically triggers a filing
- Payment default or covenant breach lenders will not waive; a debt maturity that cannot be refinanced.
- Auditor going-concern doubt (ASC 205-40 / PCAOB AS 2415) — often itself a default trigger in loan agreements.
- Creditors can force a case with an involuntary petition (§303) if debts are not paid as they come due.
- Delisting after sustained sub-$1 prices or equity deficits cuts off equity funding.
Transactions shortly before filing can be clawed back (preferences — 90 days, §547; fraudulent transfers — 2 years, §548).
Frequently asked questions
What do Envoy Medical, Inc.'s financial-health indicators show?
As of 2026-10-08, Envoy Medical, Inc.'s public financial data places it in the 'Watch' band with a distress score of 43/100, driven by losses in each of the last 3 years, operations consume cash and cash runway under 24 months. 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 Envoy Medical, Inc.'s financial distress score?
43/100 ('Watch').
What works in Envoy Medical, Inc.'s favour?
High insider/promoter ownership (40%) aligns management with survival.
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 Healthcare & MedTech companies with distress indicators
- Adagio Medical Holdings, Inc. (ADGM)Very weak 100/100
- DataMEDS AI, Inc. (MEDS)Very weak 100/100
- OneMedNet Corporation (ONMD)Very weak 100/100
- Profusa, Inc. (PFSA)Very weak 100/100
- Picard Medical, Inc. (PMI)Very weak 100/100
- Synergy CHC Corp. (SNYR)Very weak 100/100
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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.