Spire Global, Inc. — financial distress indicators
Financial-health summary
Spire Global, Inc.'s reported numbers place it in the 'Weak' financial-health band (distress score 54/100). The main indicators are revenue collapse, ohlson o-score signals likely failure and current liabilities exceed current assets. Independently, the Ohlson accounting model puts its 1-year failure probability at 61% and the market-implied (Merton) default probability is 0.0%. In its favour: cash on hand covers all debt (net-cash balance sheet).
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.
Revenue changed -35% year over year.
A >30% sales drop typically breaches leverage covenants and starves fixed-cost coverage.
O-score 0.43 → model probability 61%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Current ratio is 0.94.
Short-term obligations exceed short-term resources — the company relies on rolling over credit.
Recurring net losses.
Repeated losses are a core input in both Ohlson and Altman failure models.
Share count up +29% in a year.
Large issuance usually funds operating losses rather than growth.
Operating margin fell from -60% to -134% in two years.
Sharp margin compression signals loss of pricing power or cost control.
Operating cash flow negative in 3 of the last 3 years. The company is profitable, so this likely reflects working-capital or loan-book growth.
A business that cannot fund itself from operations depends on external capital to survive.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Cash on hand covers all debt (net-cash balance sheet).
📰 Recent news scan
- Spire Global Stock Has Key Strengths, Important WeaknessesYahoo Finance · 2026-10-05
- Spire Launches First Satellites Built At US Facility On SpaceX Mission: Here Are The Key HighlightsYahoo Finance · 2026-10-02
- Spire Global Launches First Three Satellites Built at U.S. Manufacturing FacilityYahoo Finance · 2026-10-02
- Spire Global Awarded $33.2 Million NOAA Contract for Satellite Weather Data to Enhance Weather ForecastingYahoo Finance · 2026-09-22
- EUMETSAT Awards Spire Global €4 Million One-Year Contract Renewal and Expansion for Satellite Weather DataYahoo Finance · 2026-08-25
- This Small-Cap Space Stock Could Be a Long-Term MoonshotYahoo Finance · 2026-08-20
⚖️ 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 Spire Global, Inc.'s financial-health indicators show?
As of 2026-10-08, Spire Global, Inc.'s public financial data places it in the 'Weak' band with a distress score of 54/100, driven by revenue collapse, ohlson o-score signals likely failure and current liabilities exceed current assets. 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 Spire Global, Inc.'s financial distress score?
54/100 ('Weak'). Ohlson O-score 0.43 (model 1-year failure probability 61%). Merton distance-to-default 3.65 σ (model default probability 0.0%).
What works in Spire Global, Inc.'s favour?
Cash on hand covers all debt (net-cash balance sheet).
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.
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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.