10-Q · May 15, 2026
Sphere 3D reported Q1 2026 revenue of $1.9 million, a 32.1% decline from Q1 2025's $2.8 million. The company continues to encounter profitability challenges, with a net loss resulting in an EPS of -4.61, signaling…
Earnings analysis · 10-Q
ANY earnings analysis
Filed August 14, 2026 · Our reading of the company's report
The latest report
Sphere 3D reported Q2 2026 revenue of $2.452 million, down approximately 16.7% year over year but up 28% sequentially, while gross margin compressed to approximately 6.2% and operating margin was approximately negative…
Read full summary
Sphere 3D reported Q2 2026 revenue of $2.452 million, down approximately 16.7% year over year but up 28% sequentially, while gross margin compressed to approximately 6.2% and operating margin was approximately negative 552.5% after $7.6 million of impairment charges. Diluted EPS was negative $2.68 versus positive $0.60 in Q2 2025, and operating cash flow remained negative at $9.023 million for the first six months. The company has expanded to approximately 53 MW and is pursuing 30 MW of Bitdeer hosting, but cash of $2.8 million, working capital of $0.2 million, substantial additional funding needs, and an explicit going-concern warning remain the dominant concerns.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-2.68
- Segment
- No formal segment revenue breakdown disclosed; revenue included $0.4 million from hosting services acquired effective June 1, 2026, with the remainder primarily from proprietary Bitcoin mining.
What stood out
-
Revenue improved sequentially
Revenue was $2.452 million, down $0.5 million, or approximately 16.7%, from $3.0 million in Q2 2025, but up 28% sequentially from Q1 2026. Management attributed the year-over-year decline primarily to lower Bitcoin fair value, partly offset by $0.4 million of acquisition-related revenue beginning June 1, 2026.
-
Expanded owned infrastructure
The company expanded to approximately 53 MW of operating power capacity across five data centers and has a development pipeline exceeding 100 MW. It also signed 30 MW of Bitdeer co-mining capacity agreements across three sites.
-
Bitcoin sales supported liquidity
The company held approximately 20.5 Bitcoin at June 30, 2026, with fair value of approximately $1.2 million. It also received $5.3 million from Bitcoin sales during the first six months of 2026.
-
Operating cash burn moderated
Operating cash flow used was $9.023 million in the first six months of 2026, an improvement from $9.928 million used in the prior-year period. Financing provided $2.452 million, primarily from ATM share issuance.
-
Fleet modernization underway
The company refreshed a significant portion of its mining fleet; the February 2026 sale of older equipment generated $1.2 million, which was applied toward newer mining equipment. Management said the refresh is intended to improve mining efficiency and reduce cost per Bitcoin.
What to watch
-
Severe liquidity and going-concern risk
Cash and cash equivalents declined to $2.8 million at June 30, 2026 from $3.7 million at December 31, 2025, while working capital fell by $6.7 million to $0.2 million. Management stated that cash may be insufficient to continue operations within 12 months without additional funding and identified substantial doubt about going-concern status.
-
Large impairment charges
The company recorded $7.0 million of property-and-equipment impairment and $0.6 million of intangible-asset impairment in Q2 2026, versus nil for both charges in Q2 2025. The charges were attributed primarily to changing market conditions and declining Bitcoin prices.
-
AI/HPC expansion execution risk
The company added risks related to its AI/HPC diversification strategy, while operating approximately 53 MW of capacity. It warned that conversion and development may require substantial capital before customer contracts are secured and could face delays, cost overruns, competition, equipment obsolescence, and insufficient customer demand.
-
Potential loss of tax benefits
The company expects conversion of facilities from Bitcoin mining to AI/HPC use to eliminate certain Kentucky tax exemptions, including exemptions on electricity and some tangible personal property. The loss of those exemptions would increase electricity costs and property-tax liabilities for converted capacity.
-
New anti-takeover rights plan
On August 7, 2026, the board adopted a shareholder rights plan covering acquisitions of 20% or more of voting shares. The rights expire on August 10, 2027, unless earlier terminated, and could discourage a takeover or transaction offering shareholders a premium.
Management's outlook
No numeric revenue or EPS guidance was provided. Management stated it expects to expand revenue mix and utilization in the second half of 2026 and expects Bitdeer hosting agreements to provide more predictable revenue; the first of three sites was installed after quarter-end, with the remaining two expected to be fully installed before November 2026.
Earlier filings 4
10-K · March 27, 2026
Sphere 3D is focused exclusively on Bitcoin mining after divesting its service/product segment in 2023 and is pursuing vertical integration via an owned 8 MW Iowa site (beginning March 2025) and a fleet refresh.…
10-Q · November 4, 2025
Sphere 3D reported third-quarter revenue of $2,623,000 (up $268,000 or 11.4% vs. Q3 2024) but swung to a GAAP net loss of $4,248,000 (basic EPS $(0.15)) driven by operating losses and non‑cash charges. The company…
10-Q · August 5, 2025
Sphere 3D reported Q2 2025 Bitcoin mining revenue of $3,018,000 (down from $4,666,000 in Q2 2024) and GAAP diluted EPS of $0.06. Operating loss narrowed to $(2,627,000) from $(5,711,000) a year earlier, but the company…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.