Sphere 3D Corp reported a difficult Q4 2024, with notable revenue erosion year-over-year but a modest sequential uptick in gross profit. Revenue for the quarter was $2.641 million, down 65.7% from $7.69 million in Q4 2023, reflecting ongoing challenges in the company’s mining and data-management revenue mix. Gross profit was $0.26 million (gross margin ~9.8%), yet the company posted an operating loss of $8.681 million and a net loss of $7.221 million for the quarter, largely driven by operating expenses totaling $8.941 million and a $5.966 million
Key Performance Indicators
Revenue
Decreasing
2.64M
QoQ: 12.14% | YoY: -65.66%
Gross Profit
Decreasing
260.00K
9.84% margin
QoQ: 169.15% | YoY: -75.07%
Operating Income
Decreasing
-8.68M
QoQ: -68.46% | YoY: -87.70%
Net Income
Increasing
-7.22M
QoQ: -7 043.27% | YoY: 17.63%
EPS
Increasing
-0.36
QoQ: -7 300.00% | YoY: 49.30%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $2.641 million (YoY -65.66%; QoQ +12.14%). Gross Profit: $0.260 million; Gross Margin 9.84% (YoY margin significantly lower). Operating Income: -$8.681 million (YoY -87.70%; QoQ -68.46%). Net Income: -$7.221 million (YoY improvement of +17.63% from Q4 2023; QoQ deteriorated given a large one-off/expense cadence). EPS: -$0.36 (diluted -$0.34). Free Cash Flow: -$5.824 million for the quarter. Cash and equivalents: $5.425 million; Total cash and short-term investments: $12.955 million. Total assets: $43.228 million; Total liabilities: $3.913 million; Stockholders’ equity: $39.315 million. Net cash position: -$5.425 million of net debt (i.e., cash sufficient to cover near-term obligations without drawn debt).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
2.64M
-65.66%
12.14%
Gross Profit
260.00K
-75.07%
169.15%
Operating Income
-8.68M
-87.70%
-68.46%
Net Income
-7.22M
17.63%
-7 043.27%
EPS
-0.36
49.30%
-7 300.00%
Key Financial Ratios
Gross Profit Margin
Weak
9.84%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
-3.29%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-2.73%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.17%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.18%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
4.57
Current ratio indicates excellent liquidity and financial flexibility
P/E Ratio
Negative
-0.66x
Negative earnings make P/E ratio not meaningful
Price to Book
Undervalued
0.49x
Trading below book value, potential value opportunity or distressed
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