💻 IT & Software · updated 2026-10-08
US IT & Software Companies in Financial Distress (October 2026)
As of 08 October 2026, 113 of 411 US IT & Software companies analysed (27%) show financial-distress indicators: 30 very weak, 43 weak and 40 on watch. The most common red flags in this sector are losses in each of the last 3 years, operations consume cash, cash runway under 12 months and market-implied default probability >20%.
411
Analysed
113
Distress signals
30
Very weak
27%
Flag rate
What drives financial distress in IT & Software
Software and IT services — cash burn vs runway, revenue declines and dilution. Stock-comp-driven GAAP losses at net-cash firms are discounted.
Most common red flags today: Losses in each of the last 3 years · Operations consume cash · Cash runway under 12 months · Market-implied default probability >20%
IT & Software companies with distress signals
| # | Ticker | Company / industry | Distress score | Band | Ohlson PD | Merton PD | From 52w high | Key indicators | |
|---|---|---|---|---|---|---|---|---|---|
| 1 | CYAB | Cyabra, Inc. Software - Infrastructure |
Very weak | 100% | 63.2% | -95% | Liabilities exceed assets (negative equity)Cash runway under 12 monthsMarket-implied default probability >20% |
Details → | |
| 2 | EXYN | Exyn Technologies, Inc. Software - Infrastructure |
Very weak | 100% | 50.9% | -63% | Liabilities exceed assets (negative equity)Operating profit does not cover interestCash runway under 12 months |
Details → | |
| 3 | OLB | The OLB Group, Inc. Software - Infrastructure |
Very weak | 96% | 8.7% | -63% | Cash runway under 12 monthsSevere working-capital shortfallLosses in each of the last 3 years |
Details → | |
| 4 | RDZN | Roadzen, Inc. Software - Application |
Very weak | 100% | 2.8% | -54% | Liabilities exceed assets (negative equity)Operating profit does not cover interestCash runway under 12 months |
Details → | |
| 5 | REKR | Rekor Systems, Inc. Software - Infrastructure |
Very weak | 95% | 52.6% | -90% | Operating profit does not cover interestCash runway under 12 monthsMarket-implied default probability >20% |
Details → | |
| 6 | VEEA | Veea Inc. Information Technology Services |
Very weak | 99% | 26.5% | -79% | Operating profit does not cover interestCash runway under 12 monthsMarket-implied default probability >20% |
Details → | |
| 7 | VERI | Veritone, Inc. Software - Infrastructure |
Very weak | 99% | 53.1% | -93% | Operating profit does not cover interestCash runway under 12 monthsMarket-implied default probability >20% |
Details → | |
| 8 | YXT | YXT.COM Group Holding Limited Software - Application |
Very weak | 99% | 89.8% | -91% | Operating profit does not cover interestCash runway under 12 monthsMarket-implied default probability >20% |
Details → | |
| 9 | OWLS | Obook Holdings Inc. Software - Infrastructure |
Very weak | 100% | 1.9% | -90% | Liabilities exceed assets (negative equity)Cash runway under 12 monthsLosses in each of the last 3 years |
Details → | |
| 10 | QMLS | QumulusAI, Inc. Software - Infrastructure |
Very weak | 94% | 60.9% | -74% | Operating profit does not cover interestCash runway under 12 monthsMarket-implied default probability >20% |
Details → | |
| 11 | ZENA | ZenaTech, Inc. Software - Infrastructure |
Very weak | 98% | 8.9% | -80% | Operating profit does not cover interestCash runway under 12 monthsLosses in each of the last 3 years |
Details → | |
| 12 | AIBZ | Bitzero Holdings Inc. Software - Infrastructure |
Very weak | 79% | 7.5% | -64% | Operating profit does not cover interestSevere working-capital shortfallLosses in each of the last 3 years |
Details → | |
| 13 | XBP | XBP Global Holdings, Inc. Software - Infrastructure |
Very weak | 98% | 91.8% | -62% | Operating profit does not cover interestMarket-implied default probability >20%Severe working-capital shortfall |
Details → | |
| 14 | TGL | Treasure Global Inc. Software - Application |
Very weak | 79% | 19.9% | -95% | Cash runway under 12 monthsLosses in each of the last 3 yearsRevenue collapse |
Details → | |
| 15 | UPLD | Upland Software, Inc. Software - Application |
Very weak | 89% | 99.2% | -86% | Market-implied default probability >20%Losses in each of the last 3 yearsThin interest coverage |
Details → | |
| 16 | ILLR | Triller Group Inc. Software - Application |
Very weak | — | — | -100% | Liabilities exceed assets (negative equity)Cash runway under 12 monthsLosses in each of the last 3 years |
Details → | |
| 17 | SMSI | Smith Micro Software, Inc. Software - Application |
Very weak | 99% | 4.8% | -44% | Operating profit does not cover interestCash runway under 12 monthsLosses in each of the last 3 years |
Details → | |
| 18 | HUCK | Huckleberry.ai, Inc. Software - Application |
Very weak | 100% | 51.6% | -78% | Liabilities exceed assets (negative equity)Market-implied default probability >20%Severe working-capital shortfall |
Details → | |
| 19 | QXL | Quantum X Labs Inc. Information Technology Services |
Very weak | 92% | 0.1% | -39% | Cash runway under 12 monthsSevere working-capital shortfallLosses in each of the last 3 years |
Details → | |
| 20 | DTSS | Datasea Intelligent Technology Ltd. Software - Infrastructure |
Very weak | 98% | 42.1% | -70% | Market-implied default probability >20%Severe working-capital shortfallLosses in each of the last 3 years |
Details → | |
| 21 | AMZE | Amaze Holdings, Inc. Software - Application |
Very weak | 100% | 95.3% | -100% | Market-implied default probability >20%Severe working-capital shortfallLosses in each of the last 3 years |
Details → | |
| 22 | BIYA | BIYA Software - Application |
Very weak | 92% | 42.7% | -99% | Cash runway under 12 monthsMarket-implied default probability >20%Losses in each of the last 3 years |
Details → | |
| 23 | CXAI | CXApp Inc. Software - Application |
Very weak | 96% | 77.5% | -96% | Market-implied default probability >20%Losses in each of the last 3 yearsRevenue collapse |
Details → | |
| 24 | RTB | RTB Digital, Inc. Software - Application |
Very weak | 100% | 3.4% | -57% | Liabilities exceed assets (negative equity)Cash runway under 12 monthsLosses in each of the last 3 years |
Details → | |
| 25 | BRUN | Boost Run, Inc. Software - Infrastructure |
Very weak | 99% | 8.6% | -69% | Operating profit does not cover interestSevere working-capital shortfallMaterial debt with no EBITDA |
Details → | |
| 26 | INTZ | Intrusion Inc. Software - Infrastructure |
Very weak | 100% | 2.2% | -67% | Cash runway under 12 monthsSevere working-capital shortfallLosses in each of the last 3 years |
Details → | |
| 27 | DVLT | Datavault AI Inc. Software - Infrastructure |
Very weak | 50% | 29.8% | -96% | Cash runway under 12 monthsMarket-implied default probability >20%Losses in each of the last 3 years |
Details → | |
| 28 | ORIO | Orion Digital Corp. Software - Infrastructure |
Very weak | 74% | 72.0% | -50% | Operating profit does not cover interestMarket-implied default probability >20%Losses in each of the last 3 years |
Details → | |
| 29 | RKTO | Rocket One Inc. Software - Infrastructure |
Very weak | 100% | — | -71% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 30 | SAIH | SAIHEAT Limited Information Technology Services |
Very weak | 99% | 0.0% | -20% | Cash runway under 12 monthsLosses in each of the last 3 yearsMaterial debt with no EBITDA |
Details → | |
| 31 | BTQ | BTQ Technologies Corp. Software - Infrastructure |
Weak | 100% | 0.0% | -80% | Cash runway under 12 monthsLosses in each of the last 3 yearsRevenue collapse |
Details → | |
| 32 | FUSE | Fusemachines Inc. Software - Application |
Weak | — | — | -98% | Liabilities exceed assets (negative equity)Cash runway under 12 monthsOperations consume cash |
Details → | |
| 33 | OBAI | Our Bond, Inc. Software - Infrastructure |
Weak | — | — | -99% | Liabilities exceed assets (negative equity)Cash runway under 12 monthsOperations consume cash |
Details → | |
| 34 | AMST | Amesite Inc. Software - Application |
Weak | — | — | -76% | Cash runway under 12 monthsLosses in each of the last 3 yearsRevenue collapse |
Details → | |
| 35 | BTDR | Bitdeer Technologies Group Software - Application |
Weak | 78% | 37.0% | -62% | Operating profit does not cover interestMarket-implied default probability >20%Ohlson O-score signals likely failure |
Details → | |
| 36 | CSQR | Csquare, Inc. Information Technology Services |
Weak | 70% | 10.0% | -24% | Liabilities exceed assets (negative equity)Operating profit does not cover interestVery high leverage |
Details → | |
| 37 | SECZ | Securitize Corp. Software - Application |
Weak | 100% | 1.9% | -24% | Liabilities exceed assets (negative equity)Operating profit does not cover interestMaterial debt with no EBITDA |
Details → | |
| 38 | ATGL | ATGL Software - Infrastructure |
Weak | 100% | 11.2% | -84% | Losses in each of the last 3 yearsRevenue collapseOperations consume cash |
Details → | |
| 39 | AZIO | Azio AI Holdings, Inc. Software - Infrastructure |
Weak | — | — | -71% | Liabilities exceed assets (negative equity)Cash runway under 12 monthsLosses in each of the last 3 years |
Details → | |
| 40 | CYN | Cyngn Inc. Software - Application |
Weak | — | — | -91% | Losses in each of the last 3 yearsRevenue collapseOperations consume cash |
Details → | |
| 41 | LPSN | LivePerson, Inc. Software - Application |
Weak | — | — | -82% | Liabilities exceed assets (negative equity)Losses in each of the last 3 yearsOperations consume cash |
Details → | |
| 42 | RYDE | Ryde Group Ltd. Software - Application |
Weak | 97% | — | -55% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 43 | NUAI | New Era Energy & Digital, Inc. Software - Infrastructure |
Weak | 100% | 5.7% | -40% | Severe working-capital shortfallOperations consume cashOhlson O-score signals likely failure |
Details → | |
| 44 | SKYA | SkyAI, Inc. Software - Infrastructure |
Weak | 100% | — | -76% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 45 | AMOD | Alpha Modus Holdings, Inc. Software - Application |
Weak | — | — | -95% | Liabilities exceed assets (negative equity)Cash runway under 12 monthsOperations consume cash |
Details → | |
| 46 | BAND | Bandwidth Inc. Software - Infrastructure |
Weak | 60% | 0.1% | -34% | Operating profit does not cover interestLosses in each of the last 3 yearsVery high leverage |
Details → | |
| 47 | DAIC | CID HoldCo, Inc. Information Technology Services |
Weak | — | — | -97% | Liabilities exceed assets (negative equity)Cash runway under 12 monthsOperations consume cash |
Details → | |
| 48 | BIRD | Smartbird, Inc Software - Infrastructure |
Weak | — | — | -81% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 49 | BLIN | Bridgeline Digital, Inc. Software - Infrastructure |
Weak | 89% | 0.0% | -52% | Severe working-capital shortfallLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 50 | CISO | CISO Global Inc. Software - Infrastructure |
Weak | — | — | -86% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 51 | DRK | DarkHorse Technologies Inc. Software - Infrastructure |
Weak | — | — | -73% | Cash runway under 12 monthsLosses in each of the last 3 yearsRevenue collapse |
Details → | |
| 52 | ARQQ | ARQQ Software - Infrastructure |
Weak | 100% | 0.0% | -68% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 53 | PLTS | Platinum Analytics Cayman Limited Software - Application |
Weak | 100% | — | +0% | Cash runway under 12 monthsOperations consume cashOhlson O-score signals likely failure |
Details → | |
| 54 | AUUD | Auddia Inc. Software - Application |
Weak | — | — | -94% | Losses in each of the last 3 yearsOperations consume cashShare price down >80% from 52-week high |
Details → | |
| 55 | PSFE | Paysafe Limited Software - Infrastructure |
Weak | 85% | 89.7% | -57% | Operating profit does not cover interestMarket-implied default probability >20%Very high leverage |
Details → | |
| 56 | KDK | Kodiak AI, Inc. Software - Infrastructure |
Weak | — | — | -85% | Losses in each of the last 3 yearsRevenue collapseOperations consume cash |
Details → | |
| 57 | XNDU | Xanadu Quantum Technologies Limited Software - Infrastructure |
Weak | 51% | 50.2% | -89% | Market-implied default probability >20%Losses in each of the last 3 yearsOperations consume cash |
Details → | |
| 58 | AUID | authID Inc. Software - Infrastructure |
Weak | — | — | -90% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 59 | BZAI | Blaize Holdings, Inc. Software - Application |
Weak | — | — | -95% | Cash runway under 12 monthsOperations consume cashShare price down >80% from 52-week high |
Details → | |
| 60 | CHOW | CHOW Software - Infrastructure |
Weak | 96% | 72.4% | -95% | Cash runway under 12 monthsMarket-implied default probability >20%Share price down >80% from 52-week high |
Details → | |
| 61 | DMRC | Digimarc Corporation Software - Application |
Weak | 90% | 0.0% | -62% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 62 | BLIV | BLIV Software - Application |
Weak | 100% | 0.0% | -42% | Losses in each of the last 3 yearsRevenue collapseOperations consume cash |
Details → | |
| 63 | CRGO | Freightos Limited Software - Application |
Weak | 85% | 0.1% | -80% | Losses in each of the last 3 yearsOperations consume cashOhlson O-score signals likely failure |
Details → | |
| 64 | AIFC | AI Financial Corporation Software - Infrastructure |
Weak | — | — | -86% | Losses in each of the last 3 yearsShare price down >80% from 52-week highMassive shareholder dilution |
Details → | |
| 65 | CYCU | Cycurion, Inc. Information Technology Services |
Weak | — | — | -97% | Cash runway under 12 monthsOperations consume cashShare price down >80% from 52-week high |
Details → | |
| 66 | HODO | House of Doge Inc. Software - Application |
Weak | — | — | -99% | Losses in each of the last 3 yearsRevenue collapseOperations consume cash |
Details → | |
| 67 | AZ | A2Z Cust2Mate Solutions Corp. Software - Application |
Weak | 99% | 0.0% | -32% | Losses in each of the last 3 yearsOperations consume cashOhlson O-score signals likely failure |
Details → | |
| 68 | BBAI | BigBear.ai Holdings, Inc. Information Technology Services |
Weak | 41% | 0.0% | -73% | Losses in each of the last 3 yearsOperations consume cashMassive shareholder dilution |
Details → | |
| 69 | DAVA | Endava plc Software - Infrastructure |
Weak | 57% | 85.0% | -80% | Operating profit does not cover interestMarket-implied default probability >20%Very high leverage |
Details → | |
| 70 | CHRN | ChronoScale Holdings Corporation Information Technology Services |
Weak | — | — | -36% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 71 | PHUN | Phunware, Inc. Software - Application |
Weak | 63% | 0.0% | -33% | Losses in each of the last 3 yearsOperations consume cashOhlson O-score signals likely failure |
Details → | |
| 72 | TONX | TON Strategy Co Software - Application |
Weak | 100% | 0.0% | -54% | Losses in each of the last 3 yearsOperations consume cashOhlson O-score signals likely failure |
Details → | |
| 73 | XLAB | Exascale Labs Holdings Inc. Software - Infrastructure |
Weak | — | — | -91% | Liabilities exceed assets (negative equity)Losses in each of the last 3 yearsOperations consume cash |
Details → | |
| 74 | PONY | Pony AI Inc. Information Technology Services |
Watch | 50% | 0.0% | -76% | Losses in each of the last 3 yearsOperations consume cashOhlson O-score signals likely failure |
Details → | |
| 75 | HQ | Horizon Quantum Holdings Ltd. Software - Infrastructure |
Watch | 100% | 0.0% | -58% | Liabilities exceed assets (negative equity)Severe working-capital shortfallOhlson O-score signals likely failure |
Details → | |
| 76 | NN | NextNav Inc. Software - Infrastructure |
Watch | — | — | -51% | Liabilities exceed assets (negative equity)Losses in each of the last 3 yearsOperations consume cash |
Details → | |
| 77 | NXPL | NextPlat Corp Software - Application |
Watch | 88% | 0.1% | -7% | Losses in each of the last 3 yearsOperations consume cashOhlson O-score signals likely failure |
Details → | |
| 78 | ATHR | Aether Holdings, Inc. Software - Application |
Watch | — | — | -55% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 79 | BNAI | Brand Engagement Network, Inc. Software - Infrastructure |
Watch | — | — | -92% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 80 | CSAI | Cloudastructure Inc. Software - Infrastructure |
Watch | — | — | -96% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 81 | PSQH | PSQ Holdings, Inc. Software - Application |
Watch | — | — | -90% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 82 | VHC | VirnetX Holding Corporation Software - Infrastructure |
Watch | 99% | — | -50% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 83 | VS | Versus Systems Inc. Software - Application |
Watch | 100% | — | -54% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 84 | BKKT | Bakkt, Inc. Software - Infrastructure |
Watch | — | — | -84% | Losses in each of the last 3 yearsRevenue collapseOperations consume cash |
Details → | |
| 85 | AIFA | All In FutureTech Alliance Inc. Software - Infrastructure |
Watch | 92% | 12.1% | -18% | Losses in each of the last 3 yearsOperations consume cashOhlson O-score signals likely failure |
Details → | |
| 86 | BMR | BMR Software - Application |
Watch | 100% | — | -51% | Losses in each of the last 3 yearsOperations consume cashOhlson O-score signals likely failure |
Details → | |
| 87 | AISP | Airship AI Holdings, Inc. Software - Infrastructure |
Watch | — | — | -67% | Liabilities exceed assets (negative equity)Revenue collapseDeep share-price drawdown |
Details → | |
| 88 | RPD | Rapid7, Inc. Software - Infrastructure |
Watch | 87% | 31.9% | -33% | Market-implied default probability >20%Thin interest coverageVery high leverage |
Details → | |
| 89 | FRMM | Forum Markets, Incorporated Software - Application |
Watch | — | — | -83% | Losses in each of the last 3 yearsOperations consume cashShare price down >80% from 52-week high |
Details → | |
| 90 | IDAI | T Stamp Inc. Software - Application |
Watch | — | — | -27% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 91 | MOVE | Corvex, Inc. Software - Infrastructure |
Watch | — | — | -60% | Losses in each of the last 3 yearsRevenue collapseOperations consume cash |
Details → | |
| 92 | SVCO | Silvaco Group, Inc. Software - Application |
Watch | — | — | -42% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 93 | AIFF | Firefly Neuroscience, Inc. Software - Application |
Watch | — | — | -60% | Losses in each of the last 3 yearsOperations consume cashCash runway under 24 months |
Details → | |
| 94 | CORZ | Core Scientific, Inc. Software - Infrastructure |
Watch | — | — | -47% | Liabilities exceed assets (negative equity)Revenue collapseLosses in each of the last 3 years |
Details → | |
| 95 | WYFI | WhiteFiber, Inc. Information Technology Services |
Watch | 56% | 22.5% | -65% | Market-implied default probability >20%Material debt with no EBITDAOhlson O-score signals likely failure |
Details → | |
| 96 | HTCR | HeartCore Enterprises, Inc. Software - Application |
Watch | — | — | -89% | Revenue collapseShare price down >80% from 52-week highLosses in 2 of the last 3 years |
Details → | |
| 97 | NXTT | Next Technology Holding Inc. Software - Application |
Watch | 1% | 38.6% | -100% | Market-implied default probability >20%Share price down >80% from 52-week highMassive shareholder dilution |
Details → | |
| 98 | SWMR | Swarmer, Inc Software - Infrastructure |
Watch | 99% | 0.1% | -83% | Operations consume cashShare price down >80% from 52-week highOhlson O-score signals likely failure |
Details → | |
| 99 | GLOO | Gloo Holdings, Inc. Software - Application |
Watch | — | — | -60% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 100 | QNC | Quantum eMotion Corp. Software - Infrastructure |
Watch | 100% | 0.0% | -59% | Losses in each of the last 3 yearsOperations consume cashOhlson O-score signals likely failure |
Details → | |
| 101 | AGPU | Axe Compute Inc. Software - Infrastructure |
Watch | — | — | -37% | Losses in each of the last 3 yearsOperations consume cashCash runway under 24 months |
Details → | |
| 102 | FTFT | Future FinTech Group Inc. Software - Application |
Watch | — | — | -98% | Losses in each of the last 3 yearsOperations consume cashShare price down >80% from 52-week high |
Details → | |
| 103 | KPLT | Katapult Holdings, Inc. Software - Infrastructure |
Watch | — | — | -74% | Liabilities exceed assets (negative equity)Losses in 2 of the last 3 yearsDeep share-price drawdown |
Details → | |
| 104 | MYSE | Myseum.AI, Inc. Software - Application |
Watch | — | — | -54% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 105 | NTSK | Netskope, Inc. Software - Infrastructure |
Watch | 93% | 0.1% | -19% | Losses in each of the last 3 yearsOperations consume cashOhlson O-score signals likely failure |
Details → | |
| 106 | AIXC | AIxCrypto Holdings, Inc. Software - Infrastructure |
Watch | — | — | -71% | Losses in each of the last 3 yearsOperations consume cashCash runway under 24 months |
Details → | |
| 107 | CURR | CURRENC Group Inc. Software - Application |
Watch | 98% | 0.2% | -38% | Operations consume cashOhlson O-score signals likely failureMassive shareholder dilution |
Details → | |
| 108 | NRDY | Nerdy Inc. Software - Application |
Watch | — | — | -68% | Losses in each of the last 3 yearsOperations consume cashCash runway under 24 months |
Details → | |
| 109 | TCX | Tucows Inc. Software - Infrastructure |
Watch | — | — | -61% | Losses in each of the last 3 yearsOperations consume cashCash runway under 24 months |
Details → | |
| 110 | CIFR | Cipher Digital Inc. Information Technology Services |
Watch | — | — | -54% | Losses in each of the last 3 yearsOperations consume cashCash runway under 24 months |
Details → | |
| 111 | EXOD | Exodus Movement, Inc. Software - Infrastructure |
Watch | — | — | -80% | Cash runway under 12 monthsOperations consume cashShare price down >80% from 52-week high |
Details → | |
| 112 | JTAI | Jet.AI Inc. Software - Application |
Watch | — | — | -98% | Revenue collapseShare price down >80% from 52-week highLosses in 2 of the last 3 years |
Details → | |
| 113 | SAGT | Sagtec Global Limited Software - Application |
Watch | 2% | 46.4% | -80% | Market-implied default probability >20%Trading below $1Deep share-price drawdown |
Details → |
Frequently asked questions
Which IT & Software companies are in financial distress?
As of 2026-10-08, 113 US IT & Software companies show financial-distress indicators (30 very weak, 43 weak and 40 on watch). The table on this page ranks them by score with the indicators behind each one. These are statistical signals, not predictions that any company will file.
How many IT & Software companies are in financial trouble?
113 of 411 analysed (27%); 30 are in the 'Very weak' band.
What are the biggest financial risks for IT & Software companies?
Software and IT services — cash burn vs runway, revenue declines and dilution. Stock-comp-driven GAAP losses at net-cash firms are discounted. Right now the most frequent red flags are losses in each of the last 3 years, operations consume cash, cash runway under 12 months and market-implied default probability >20%.
What happens to shareholders if a company becomes insolvent?
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.
Financial distress in other sectors
🏦 Bank & Finance 57🛡️ Insurance 6💊 Pharma & Biotech 354🩺 Healthcare & MedTech 98🔬 Semiconductor 15🤖 AI 74🖥️ Hardware & Electronics 40📡 Telecom & Media 55🛍️ Consumer Discretionary 91🛒 Consumer Staples 41🏭 Industrials & Capital Goods 116🛢️ Energy, Oil & Gas 31⛏️ Metals, Mining & Chemicals 61⚡ Utilities & Power 14🏢 Real Estate Cos & REITs 25📦 SPACs & Shell Companies 0❔ Unclassified 235
Important: A listing means a company’s reported numbers resemble those of firms that later failed — it is not a statement that the company is insolvent, has defaulted or will enter insolvency proceedings. Recalculated every trading day. Not investment or legal advice.