Sphere 3D Corp. Common Shares (ANY)

FairStock Score: 36/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses with durable economics and honest owners. Sphere 3D is a bitcoin miner, a commodity service with no visible pricing power, only two employees, and revenue of $2.5 million in fiscal Q2 2026, the latest reported quarter, against a net loss of $13.8 million. That is a -563.99% margin. Over the trailing twelve months, free cash flow was -$21.5 million against a $5.4 million market capitalization, a -398.0% FCF yield by FairStock's calculation. The enterprise consumes far more cash than it generates. Revenue growth is -18.75% and profit growth is -929.57%, so this is not a compounding machine. Debt/equity of 0.08 is not alarming, but ROE of -130.19% and ROCE of -27.39% show capital is being destroyed. The Piotroski F-Score is 2/9 and Altman Z-Score is -28.22, both FairStock calculations that point to severe financial distress. On valuation, P/B is 1.22 and P/E is -0.25; a modest price-to-book may be meaningless if book value represents depreciating mining equipment and cash burn continues. Beta is 3.35, and the 52-week range is $1.08 to $12.60, so the shares swing violently. A moat? I see none: bitcoin mining is competitive, hardware-dependent, and tied to coin prices and energy costs. FairStock score 36/100 and the Lynch category is none because there are only 0 years of filed results, so there is no track record to classify. Graham would call this speculation, not investment, unless asset value and cash flow were demonstrably protected. At $2.26 on 2026-10-13, the price may look low against book, but the numbers show a fragile business. I would need a credible path to positive cash flow and real asset coverage before calling it cheap.

In plain English: Sphere 3D is a bitcoin mining company with only two employees. The business looks weak: in the latest reported quarter it earned $2.5 million of revenue but lost $13.8 million, and it has been burning cash. At $2.26 a share, the price may look low compared with the value of its assets, but the losses and shrinking revenue make it look speculative rather than clearly cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer