Investment Thesis
Sphere 3D Corp demonstrates severe financial deterioration with collapsing profitability, negative operating cash flow of -$13.4M, and a -199.7% free cash flow margin indicating the company is burning substantial cash relative to revenue. Despite maintaining a healthy balance sheet with 6.28x current ratio and minimal debt, the company's core operations are fundamentally unviable with -140% operating margins and revenue declining 24.2% YoY, creating an unsustainable business model.
ANY Strengths
- Strong liquidity position with 6.28x current ratio and $5.3M cash reserves
- Minimal debt burden with 0.00x debt-to-equity ratio providing financial flexibility
- High gross margin of 70.5% indicates strong unit economics at product level, suggesting pricing power or differentiated offerings
ANY Risks
- Negative operating cash flow of -$13.4M with -199.7% free cash flow margin indicates rapid cash depletion unsustainable long-term
- Revenue declining 24.2% YoY while operating losses widen to -$11.8M demonstrates deteriorating business fundamentals and loss of market demand
- Operating margin of -140.1% and net margin of -134.4% indicate severe operational inefficiency that cannot be sustained; company is losing $1.40 for every $1.00 of revenue
Key Metrics to Watch
- Operating cash flow trajectory and burn rate relative to cash reserves
- Revenue stabilization and return to growth from current -24.2% YoY decline
- Path to operating profitability and reduction of operating loss margin toward breakeven
ANY Financial Metrics
ANY Profitability Ratios
ANY Balance Sheet & Liquidity
ANY 5-Year Financial Trend
5-Year Trend Summary: Sphere 3D Corp.'s revenue has grown significantly by 74% over the 5-year period, indicating strong business expansion. The most recent EPS of $-1.93 indicates the company is currently unprofitable.
ANY Growth Metrics (YoY)
ANY Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $2.4M | $104.0K | $0.01 |
| Q2 2025 | $3.0M | $1.7M | $0.06 |
| Q1 2025 | $2.8M | -$4.5M | $-0.27 |
| Q3 2024 | $2.4M | $104.0K | $0.01 |
| Q2 2024 | $4.7M | $2.1M | $0.10 |
| Q1 2024 | $3.0M | -$3.5M | $-0.27 |
| Q3 2023 | $1.4M | -$3.5M | $-0.50 |
| Q2 2023 | $1.9M | -$3.5M | $-0.44 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ANY Capital Allocation
ANY SEC Filings
Access official SEC EDGAR filings for Sphere 3D Corp. (CIK: 0001591956)