DarkHorse Technologies Inc. (DRK) AI Stock Analysis
DRK AI stock analysis summary
AI ResearchDarkHorse Technologies Inc. is a digital infrastructure firm focused on power and data center assets for computing and AI workloads. The company reported trailing twelve-month revenue of $9.7M alongside an operating margin of -252.7%. With free cash flow at -$23.6M in FY2025 and a market cap of $21.7M, the business continues to navigate significant ongoing operating losses.
- Market cap
- $21.7M
- Revenue (TTM)
- $9.7M
- P/E
- —
- 1Y return
- -80.5% S&P 500 16.8%
- Avg. target
- $5.00 143.9% vs last close
Bull case
- The mean analyst price target of $5.00 represents a 143.9% premium over the last close of $2.05.
- Analyst consensus expects next fiscal year revenue to expand by 25.1% to reach $31.7M.
- Insiders hold a substantial ownership stake of 33.3%, aligning executive incentives with shareholders.
Bear case
- Revenue declined 32.7% in FY2025 to $11.2M and decreased another 18.8% year-over-year in the latest quarter.
- Free cash flow worsened to -$23.6M in FY2025 alongside a trailing twelve-month operating margin of -252.7%.
- The stock has dropped 80.5% over the trailing 12 months and 99.6% over the past 5 years.
What DarkHorse Technologies does
DarkHorse Technologies Inc. operates as a digital infrastructure company based in Stamford, Connecticut. The company focuses on operating and expanding power and data center assets tailored for computing, artificial intelligence workloads, and digital asset infrastructure. Formerly known as Sphere 3D Corp., the company rebranded and changed its corporate name to DarkHorse Technologies Inc. in September 2026. Founded with an IPO in 2008, the company lists 2 employees and operates within the software infrastructure industry on the NASDAQ exchange under the ticker symbol DRK.
Growth and profitability
DarkHorse generated $11.2M in revenue in FY2025, representing a 32.7% decline from $16.6M in FY2024 and down from $21.9M in FY2023. Gross margin was 23.5% in FY2025, an increase from 19.4% in FY2024 but lower than 43.8% in FY2022. Operating losses have remained severe, with FY2025 operating margin at -111.9% and net income of -$21.5M, which translates to an EPS of -$8.97. Despite a 3-year revenue CAGR of 22.5% from FY2022 to FY2025, revenue over the trailing twelve months slipped to $9.7M, marked by an 18.8% year-over-year revenue decline in the quarter ended June 30, 2026.
Balance sheet and cash flow
As of June 30, 2026, DarkHorse held $2.8M in cash and short-term investments against total assets of $24.9M and shareholders' equity of $16.9M. Its current ratio stood at 1.03. The company generated operating cash flow of -$16.1M and free cash flow of -$23.6M during FY2025, compared to -$4.6M and -$13.5M respectively in FY2024. In FY2025, capital expenditures totaled $7.5M, while the company directed $431,000 toward share buybacks.
Valuation and performance
DarkHorse trades at an enterprise value of $31.5M and a market cap of $21.7M. Its price-to-sales multiple is 2.2x, below the 2.8x median of its US-listed Technology peers. Its EV-to-revenue ratio is 3.2x, while price-to-book stands at 2.1x. The company's stock has underperformed broader benchmarks, dropping 80.5% over the past 1 year compared to a 16.8% gain for the S&P 500, and declining 99.6% over 5 years against an 83.0% gain for the index.
What analysts expect
The single analyst tracking DarkHorse projects FY2026 revenue of $25.3M with an EPS of -$2.85 for the fiscal year ending December 31, 2026. For FY2027, the analyst forecasts revenue of $31.7M, representing 25.1% growth, and an EPS of -$0.72. The mean price target is $5.00, representing an upside of 143.9% from the last close of $2.05 on October 16, 2026. DarkHorse has beaten earnings estimates in 2 of the last 4 quarters, and its next earnings date is scheduled for November 3, 2026.
Key risks and what to watch
- Cash reserves were limited to $2.8M as of June 30, 2026, relative to an annual operating cash burn of -$16.1M in FY2025.
- The company exhibits elevated price volatility, reflected in a high beta of 3.35.
- Net income remained deeply negative at -$21.5M in FY2025, following a net loss of -$9.5M in FY2024.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this DRK AI stock analysis
This page is an AI-written research summary of DarkHorse Technologies Inc. (DRK). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: DRK income statement, DRK balance sheet, DRK key metrics, DRK analyst forecast, DRK chart. See the DRK stock overview for the latest quote and news.
DRK AI stock analysis FAQ
What is DarkHorse Technologies' market cap and enterprise value?
As of October 16, 2026, DarkHorse Technologies has a market capitalization of $21.7M and an enterprise value of $31.5M.
Does DRK pay a dividend?
No, DarkHorse Technologies does not currently pay a dividend to shareholders.
What is the mean analyst price target for DRK?
The mean analyst price target is $5.00, which sits 143.9% above the last closing price of $2.05.
When is the next earnings report for DarkHorse Technologies?
The company's next earnings report is scheduled for November 3, 2026.