Sphere 3D (ANY) AI Stock Analysis

• Market Cap: $12.91M
• Dividend Yield: N/A
• Average Volume (3M): 272.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.94
• Revenue Growth: -24.19%
• EPS Growth: 72.41%
• Country: US
• Employees: 2
• Sector: Technology
• Sector Strength: 46
• Industry: Software - Application
• EPS (TTM): -0.52
• Shares Outstanding: 26,178,282
• 10 Day Avg. Volume: 243,439
• 30 Day Avg. Volume: 272,719
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.73
• Price to Cash Flow (P/CF): 8.80
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $3.00
• Price Target Upside: 512.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Sphere 3D's overall stock score is primarily impacted by its financial performance, which shows a strong balance sheet but significant profitability challenges. The technical analysis indicates ongoing weak market momentum. The valuation is poor due to negative earnings and lack of dividends, further contributing to the low score.

Positive Factors

Cost Efficiency

The initiation of a new, owned 8MW site in Iowa is part of Sphere 3D Corp's vertical integration strategy, which is expected to provide a cost advantage for bitcoin mining operations.

Operational Efficiency

The expectation is that Sphere 3D Corp's operational costs for the new 8MW site in Iowa will be significantly lower, at approximately 4 cents/kWh, compared to previous costs.

Strategic Development

Sphere 3D signed a Letter of Intent with Simple Mining LLC to develop and operate a 12.5MW site in Iowa, offering sub-4-cent energy costs, representing a key step in Sphere 3D’s strategic efforts.

Negative Factors

Financial Estimates

Estimates for 2024 and 2025 have been lowered due to lower fleet hash and low hash price projections.

Leadership

The unexpected loss of CEO Patti Trumpeter is seen as a significant setback for Sphere 3D Corp, potentially causing some instability in the company's leadership.

Revenue Performance

Sphere 3D reported 3Q24 revenue of $2.4M, down from $4.7M in 2Q24, with the company's average hash rate decreasing to 0.7Eh/s from 1.2Eh/s, reflecting downtime due to hosting transitions and fleet upgrades.

Sphere 3D Business Overview & Revenue Model

Company Description

Sphere 3D Corp. is a company that operates in the technology sector, primarily focusing on providing solutions in the fields of data management and cloud computing. The company is known for offering products and services that include virtual desktop infrastructure (VDI), storage solutions, and cloud services. Sphere 3D aims to assist businesses in managing their data and applications more efficiently, leveraging virtualization and cloud technology to deliver scalable and flexible IT solutions.

How the Company Makes Money

Sphere 3D generates revenue through the sale of its technology products and services, which include virtual desktop infrastructure solutions, storage systems, and cloud services. The company earns money by licensing its software solutions, selling hardware products, and providing ongoing support and maintenance services to its clients. Additionally, Sphere 3D may engage in partnerships and collaborations with other tech companies to expand its market reach and enhance its product offerings, contributing to its revenue streams.

Sphere 3D Financial Statement Overview

Summary

Sphere 3D shows financial resilience with a debt-free balance sheet, but struggles with profitability and cash flow management, evidenced by negative profit margins and erratic revenue growth.

Income Statement

Sphere 3D has faced significant challenges in profitability, with negative net profit margins consistently over the years. The TTM figures show a decrease in revenue and gross profit, impacting overall profitability. The company also reports negative EBIT and EBITDA margins, indicating operational struggles. Revenue growth has been erratic, with a decline in the latest TTM period.

Balance Sheet

The balance sheet shows a strong equity position with no debt, reflected in a debt-to-equity ratio of zero. However, the ROE is negative, affected by sustained losses. The equity ratio is strong, indicating financial stability despite operational challenges.

Cash Flow

Operating cash flow has improved in the TTM period, but free cash flow remains negative, indicating ongoing cash management challenges. The cash flow to net income ratios show an inability to convert earnings into cash, though there is a slight improvement compared to previous years.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
21.66M	21.91M	6.08M	3.72M	4.85M	5.58M
	Gross Profit
4.01M	5.96M	2.66M	1.70M	2.25M	1.85M
	EBIT
-17.36M	-30.00M	-67.42M	-18.90M	-5.68M	-5.95M
	EBITDA
-1.95M	-15.94M	-164.48M	-11.10M	-4.08M	-2.90M
	Net Income Common Stockholders
-11.02M	-23.41M	-192.91M	-17.29M	-5.78M	-6.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
310.56K	586.00K	1.34M	54.35M	461.00K	149.00K
	Total Assets
312.95K	45.66M	83.02M	275.92M	11.83M	8.41M
	Total Debt
0.00	0.00	0.00	0.00	2.50M	491.00K
	Net Debt
-210.69K	-586.00K	-1.34M	-54.35M	2.04M	342.00K
	Total Liabilities
―	5.35M	48.45M	6.30M	6.82M	7.17M
	Stockholders Equity
306.09K	40.32M	34.56M	269.63M	5.01M	1.24M
Cash Flow		Free Cash Flow
10.31M	-8.14M	-48.71M	-130.76M	-2.58M	-1.81M
	Operating Cash Flow
14.92M	-6.58M	-30.77M	-28.52M	-2.58M	-1.81M
	Investing Cash Flow
7.52M	2.56M	-22.04M	-122.69M	-2.00M	0.00
	Financing Cash Flow
165.25K	3.06M	0.00	205.10M	4.90M	1.62M

Sphere 3D Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ANY, the sentiment is Negative. The current price of 0.49 is above the 20-day moving average (MA) of 0.46, below the 50-day MA of 0.55, and below the 200-day MA of 0.92, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 42.94 is Neutral, neither overbought nor oversold. The STOCH value of 55.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ANY.

Sphere 3D Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	59 Neutral	$9.97B	10.09	-6.54%	3.08%	7.41%	-11.60%
BLBX	53 Neutral	$11.64M	―	-54.70%	―	-17.36%	28.70%
NXPL	48 Neutral	$13.76M	―	-47.65%	―	73.44%	-205.59%
ANY	45 Neutral	$12.91M	―	-23.78%	―	-24.19%	72.41%
BNZI	31 Underperform	$15.46M	―	67.54%	―	106.67%	16.74%

Sphere 3D Corporate Events

Sphere 3D CEO Takes Temporary Medical Leave

On January 31, 2025, Sphere 3D Corp. announced that CEO Patricia Trompeter will take a temporary medical leave of absence for approximately four months. During her absence, CFO Kurt Kalbfleisch will serve as acting CEO, while Trompeter remains involved in strategic decisions as a board member. The company maintains confidence in its management team to continue executing its strategic initiatives and ensure business continuity during this period.