WhiteFiber, Inc. — financial distress indicators
Financial-health summary
WhiteFiber, Inc.'s reported numbers place it in the 'Watch' financial-health band (distress score 41/100). The main indicators are market-implied default probability >20%, material debt with no ebitda and ohlson o-score signals likely failure. Independently, the Ohlson accounting model puts its 1-year failure probability at 56% and the market-implied (Merton) default probability is 22.5%. In its favour: operating cash flow is positive over the latest 12 months.
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.
Merton distance-to-default 0.75 σ → PD 23%.
Structural (Merton/KMV) model: equity is a call option on assets; low distance-to-default means assets are close to the default point.
Debt is 32% of assets while EBITDA is not positive.
With no operating earnings, repayment depends entirely on asset sales or fresh capital.
O-score 0.23 → model probability 56%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Price is -65% from its 52-week high.
For financial firms a share-price run often precedes a deposit or funding run (confidence channel).
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Operating cash flow is positive over the latest 12 months.
- Strong current ratio (2.76).
- Revenue still growing (+66% YoY).
- High insider/promoter ownership (71%) aligns management with survival.
📰 Recent news scan
- Clockwork.io Raises $31M as LinkedIn, Together AI and WhiteFiber Adopt Its Resilience Software to Stop Wasting GPU-HoursYahoo Finance · 2026-10-05
- B. Riley keeps WhiteFiber at Buy, $38 target as North Carolina financing nearsYahoo Finance · 2026-09-10
- WhiteFiber (WYFI) Secures Funding And Capacity, Is The Stock A Bargain?Yahoo Finance · 2026-08-24
- WhiteFiber (WYFI) Is Down 29.8% After Securing 100MW Krambu AI Infrastructure Deal - What's ChangedYahoo Finance · 2026-08-23
- WhiteFiber Announces Closing of Upsized $310.0 Million Convertible Senior Notes OfferingYahoo Finance · 2026-08-21
- WYFI Stock Crashed More Than 22% In Pre-Market Today – What’s The Latest On Its Convertible Note Offering?Yahoo Finance · 2026-08-19
⚖️ 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 WhiteFiber, Inc.'s financial-health indicators show?
As of 2026-10-08, WhiteFiber, Inc.'s public financial data places it in the 'Watch' band with a distress score of 41/100, driven by market-implied default probability >20%, material debt with no ebitda and ohlson o-score signals likely failure. 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 WhiteFiber, Inc.'s financial distress score?
41/100 ('Watch'). Ohlson O-score 0.23 (model 1-year failure probability 56%). Merton distance-to-default 0.75 σ (model default probability 22.5%).
What works in WhiteFiber, Inc.'s favour?
Operating cash flow is positive over the latest 12 months. Strong current ratio (2.76). Revenue still growing (+66% YoY). High insider/promoter ownership (71%) 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 IT & Software companies with distress indicators
- Cyabra, Inc. (CYAB)Very weak 100/100
- Exyn Technologies, Inc. (EXYN)Very weak 100/100
- The OLB Group, Inc. (OLB)Very weak 100/100
- Roadzen, Inc. (RDZN)Very weak 100/100
- Rekor Systems, Inc. (REKR)Very weak 100/100
- Veea Inc. (VEEA)Very weak 100/100
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.