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S3

Sphere 3D Corp. (ANY)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue was $2.64M, modestly below the $2.73M Wall Street consensus (–3.4%); Primary EPS was –$0.67 vs –$0.27 consensus, a larger-than-expected loss driven by ongoing fleet refresh and hosting transitions. Values retrieved from S&P Global.* *
  • FY 2024 revenue was $16.6M and net loss was $9.47M (–$0.48 per share), improving materially from FY 2023 net loss of $23.4M (–$1.93 per share) as opex fell ~$14M YoY.
  • Strategic transition continued: exiting higher-cost hosting, upgrading to S19 XP/S21 miners, and moving toward vertical integration; first company-owned site energized in March 2025 (post-quarter).
  • Corporate settlements reduced counterparty risk and provided cash inflow: termination/settlement with Rebel Mining ($2.4M), and litigation dismissal with Gryphon (no payment).
  • No formal numeric guidance was provided; management emphasized operational efficiency and infrastructure control as the path to improved profitability post-halving.

What Went Well and What Went Wrong

What Went Well

  • Vertical integration progress and fleet upgrades: “We focused on cycling out of high-cost hosting partners, streamlining SG&A expenses, and laying the groundwork for vertical integration… The launch of our first site in March 2025 signals a meaningful shift.”
  • Expense discipline: Operating costs and expenses fell to $38.0M in FY 2024 from $51.9M in FY 2023 (~$13.9M reduction), contributing to improved net loss.
  • Contract wins/settlements: Rebel hosting agreement termination yielded $2.4M payable to Sphere, and Gryphon litigation was dismissed with no payment by Sphere, reducing legal uncertainty.

What Went Wrong

  • Q4 underperformance vs estimates: Revenue missed by ~3.4% and EPS missed more significantly (–$0.67 vs –$0.27), reflecting transitional downtime and halving economics. Values retrieved from S&P Global.* *
  • Bitcoin production and exahash variability: Management highlighted “short-term fluctuations in exahash and Bitcoin output” during machine refresh and hosting changes; Q3 BTC mined fell to 38.7 from 181.7 YoY.
  • Mixed segment disclosures: The FY 2024 statement shows zero service/product revenue, while Q2 press release reported $0.5M, suggesting classification timing or presentation differences that reduce clarity for trend analysis.

Financial Results

P&L vs Prior Quarters and Consensus

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD)$4.666M $2.355M $2.641M*
Net Income ($USD)$2.124M $0.104M $(7.221)M*
Primary EPS ($USD)n/an/a$(0.6724)*
Diluted EPS - Continuing Ops ($USD)$0.10 $0.005 $(0.3121)*
EBIT ($USD)$(4.160)M*$(5.153)M $(4.467)M*
EBITDA ($USD)$(2.344)M*$(3.416)M*$(2.728)M*
EBITDA Margin %–50.24%*–145.05%*–103.29%*
EBIT Margin %–89.16%*–218.81%*–169.14%*
Net Income Margin %45.52%*4.42%*–273.42%*

Values retrieved from S&P Global for cells marked with *.

Consensus comparison (Q4 2024):

  • Revenue: Actual $2.641M vs Consensus $2.733M (miss). Values retrieved from S&P Global.*
  • Primary EPS: Actual –$0.6724 vs Consensus –$0.27 (miss). Values retrieved from S&P Global.*

Revenue Segment Breakdown

SegmentQ2 2024Q3 2024Q4 2024
Bitcoin Mining Revenue ($USD)$4.666M $2.355M $2.641M*
Service & Product Revenue ($USD)$0.500M $0 $0

Note: FY 2024 statements show zero service/product revenue for the year, while Q2 2024 press release shows $0.5M; this discrepancy likely reflects classification timing and/or segment sale completion.

KPIs

KPIQ2 2024Q3 2024Q4 2024
Bitcoin Produced (BTC)70.7 38.7 n/a
Ending EH/s1.2 0.7 n/a
BTC Holdings (end of period)7.2 BTC ($0.5M) 1.3 BTC (~$0.08M) 14.9 BTC ($1.4M)

Cash Flow and Operating Expenses

MetricQ2 2024Q3 2024Q4 2024
Cash from Operations ($USD)$(3.296)M*$0.290M $(1.512)M*
Total Operating Expenses ($USD)$8.826M*$7.508M $7.108M*

Values retrieved from S&P Global for cells marked with *.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Overall financial guidanceFY/Q4 2024None providedNone providedMaintained (no formal guidance)

Management commentary emphasized transition to vertical integration and efficiency rather than issuing numeric guidance.

Earnings Call Themes & Trends

Note: A Q4 2024 earnings call transcript was not available in our document set. We track themes using press releases across quarters.

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4/FY 2024)Trend
Vertical integrationFirst S21s energized in July; fleet refresh underway. LOI for 12.5MW Iowa site; plan for improved hosting, infrastructure buildout. New Iowa site fully energized in March 2025; Simple Mining to operate; move to owning/operating infrastructure. Strengthening
Hosting/Counterparty ManagementTemporary interruptions from certain hosting partners; strategy to refresh fleet and pursue M&A. Exited a hosting contract; $3.0M inflow; machines temporarily offline as part of strategy. Ended Rebel hosting agreement; $2.4M settlement payable to Sphere; reduced counterparty risk. Improving risk profile
Halving impact50% block reward reduction noted. Post-halving economics driving strategic reconfiguration; BTC production down YoY. Halving framed as pivotal; strategy focused on efficiency and control. Stabilizing post-transition
Fleet upgrade (S19 XP/S21)First shipment energized July; milestone in refresh strategy. Ongoing refresh; short-term exahash/BTC output fluctuations expected. ~25% of S19j Pros replaced in Q4; nameplate hashrate +40% (S19 XP) and +100% (S21). Accelerating upgrades
Legal/Regulatoryn/an/aGryphon litigation dismissed; no payment by Sphere. Resolved

Management Commentary

  • “2024 was a year of transition… we focused on cycling out of high-cost hosting partners, streamlining SG&A expenses, and laying the groundwork for vertical integration… The launch of our first site in March 2025 signals a meaningful shift.”
  • “During the fourth quarter of 2024, the Company replaced approximately 25% of its S19j Pro miners with newer generation S19 XPs and S21 Bitmain miners, which increased the nameplate hashrate related to those miners by 40% and 100% respectively.”
  • Corporate developments: “In January 2025, we ended our hosting agreement with Rebel Mining… termination and settlement amount of $2.4 million payable to us… In March 2025, we reached a settlement with Gryphon Digital Mining… Sphere 3D made no payments under the settlement.”

Q&A Highlights

A Q4 2024 earnings call transcript was not available; therefore, no Q&A highlights or guidance clarifications could be extracted. [ListDocuments: earnings-call-transcript none]

Estimates Context

  • Q4 2024 Wall Street consensus (S&P Global): Revenue $2.73M vs actual $2.64M (miss); Primary EPS –$0.27 vs actual –$0.67 (miss). Values retrieved from S&P Global.*
  • Limited analyst coverage: one estimate for both revenue and EPS, increasing uncertainty and potential for outsized revisions post-report. Values retrieved from S&P Global.*
MetricQ4 2024 ConsensusQ4 2024 Actual
Revenue ($USD)$2.733M*$2.641M*
Primary EPS ($USD)–$0.27*–$0.6724*
# of Estimates (Revenue)1*—
# of Estimates (EPS)1*—

Values retrieved from S&P Global for all cells marked with *.

Key Takeaways for Investors

  • Q4 was a transitional quarter with a revenue miss and materially wider EPS loss vs consensus, underscoring near-term dilution from hosting exits and fleet upgrades. Values retrieved from S&P Global.*
  • Expense discipline improved FY 2024 profitability trajectory; the YoY net loss narrowed meaningfully as operating expenses fell ~$14M.
  • Integration milestones post-quarter (Iowa site energized; Simple Mining operating) and settlements (Rebel/Gryphon) lower operational and legal risk heading into 2025.
  • Fleet refresh to S19 XP/S21 should enhance efficiency and hashrate; expect near-term exahash/BTC volatility but improved longer-term unit economics.
  • Lack of formal guidance raises forecasting uncertainty; investors should focus on operational KPIs (EH/s, uptime, BTC output) and cash generation as the site ramps.
  • Disclosures show segment presentation discrepancies (Q2 vs FY 2024); monitor for clarified reporting and consistent segment metrics in future filings.
  • Near-term trading: stock likely sensitive to updates on site performance, incremental fleet deployments, and any additional settlements/hosting transitions; medium term thesis hinges on successful vertical integration driving lower cost per BTC and more stable margins.

Notes:

  • The Q4 2024 earnings call transcript was not found; analysis relies on 8-K press releases and FY 2024 exhibit.
  • All cells with * are values retrieved from S&P Global.