Soluna (SLNH 3.62%), a developer and operator of renewable-powered information facilities targeted on Bitcoin mining and sustainable computing, revealed its second-quarter outcomes on August 15, 2025. The important thing information: income was $6.2 million, nicely beneath the consensus estimate of $8.10 million and down sharply from $9.68 million within the prior 12 months. Even so, earnings per share improved to $(0.69), narrowing from $(2.97) within the prior 12 months. The general evaluation highlights important business stress on income, balanced by disciplined value controls and ongoing undertaking improvement. Unrestricted money elevated by $2.0 million to $9.9 million as of June 30, 2025, in comparison with December 31, 2024, however money stays tight and the enterprise continues to rely closely on exterior funding.
MetricQ2 2025Q2 2025 EstimateQ2 2024Y/Y ChangeEPS (GAAP)$(0.69)$(0.76)$(2.97)76.8percentRevenue (GAAP)$6.2 million$8.10 million$9.68 million(36.0%)Adjusted EBITDA$(1.23 million)$1.80 million(168.3%)Gross Margin19percent42.5%(23.5 pp)Unrestricted Money$9.88 million$7.84 million (as of Dec 31, 2024)26.1%
Supply: Analyst estimates offered by FactSet. Administration expectations primarily based on administration’s steerage, as offered in Q1 2025 earnings report.
About Soluna’s enterprise and strategic priorities
Soluna (SLNH 3.62%) makes a speciality of establishing and working information facilities which are co-located with renewable vitality sources like wind and photo voltaic crops. Its fundamental product traces are Bitcoin mining operations, internet hosting third-party miners in its information facilities, and offering demand response providers for the facility grid. By utilizing vitality that may in any other case go unused — often known as stranded vitality — it may well ship lower-cost and extra sustainable computing options.
Lately, the corporate has targeted on increasing its pipeline of latest renewable-powered websites and refining its capital construction. Its success is dependent upon scaling this pipeline, managing undertaking prices, and making certain a gradual circulate of capital for additional progress. Strategic partnerships and disciplined value controls are additionally key elements because it grows each Bitcoin mining and third-party internet hosting income streams.
Quarter in assessment: Income stress and strategic growth
Each high and backside line outcomes missed analyst expectations. Income was $6.2 million, lacking estimates by $1.9 million and declining $3.5 million from the prior 12 months. This shortfall was primarily attributed to the results of the Bitcoin halving — a scheduled occasion that cuts miners’ rewards in half — which passed off in April 2024, inflicting mining economics to weaken. Income drops hit all segments: Cryptocurrency Mining, Information Internet hosting, and Demand Response Providers every posted double-digit declines.
Gross margin was 19%, down from 42.5% a 12 months earlier, reflecting strict value controls. Nonetheless, adjusted EBITDA, a non-GAAP measure of profitability earlier than curiosity, taxes, depreciation, and amortization, moved sharply adverse to $(1.23 million), worse than final 12 months’s $1.80 million.
The corporate additionally reported a web lack of $(7.78 million). Loss per share was $0.69, in comparison with $2.97 within the prior 12 months. Money available improved to $9.88 million, boosted by capital raises and tight spending, however stays small relative to future undertaking wants.
Operational highlights included a number of giant undertaking launches. In the course of the quarter, 295 megawatts of latest initiatives had been launched, together with its first solar-powered information heart, Mission Annie, and new wind-powered websites. The full undertaking pipeline reached 2.8 gigawatts, up from 2.6 gigawatts on the finish of December 2024. The continued growth of Mission Dorothy 2 in Texas stays on observe for completion within the fourth quarter of 2025, set so as to add important internet hosting capability. The corporate additionally secured $20 million in new undertaking financing from Spring Lane Capital for Mission Kati and closed a $5 million debt facility with Galaxy Digital secured by the property of Mission Sophie.
Soluna’s enterprise segments all skilled declines in income in comparison with the prior 12 months. Mining section income fell to $2.86 million, with the section swinging from working revenue to slight working loss amid falling “hashprice,” a key measure of mining earnings per computing unit. Information heart internet hosting produced $3.14 million in income. Demand Response Providers income was $0.16 million as the corporate cycled out of the winter pricing season and confronted adjustments from the Electrical Reliability Council of Texas (ERCOT) market. Gross revenue for working websites in Soluna Digital remained regular in comparison with the prior quarter.
One-time occasions this quarter included the strategic termination of a contract with Hewlett Packard Enterprise (HPE) within the Mission Ada unit, permitting Soluna to refocus on core crypto-mining and future synthetic intelligence information heart improvement. Whereas one-time adjustments within the industrial mannequin and non permanent operational downtimes impacted income, administration expects these to be resolved in future intervals as new capability comes on-line.
SLNH doesn’t presently pay a dividend.
Wanting forward: Steering and investor issues
Administration didn’t present quantitative income or earnings steerage for upcoming quarters or for fiscal 2025. Management indicated within the launch, “We anticipate income to stabilize and develop as we proceed to fee extra MW of Bitcoin Internet hosting capability over the following two years, associated to Dorothy 2 and Kati 1,” (Administration outlook as of Q2 2025; income refers to GAAP income as reported in firm filings). Administration expects income to stabilize and develop as extra megawatts of Bitcoin Internet hosting capability are commissioned over the following two years. Nonetheless, the corporate reiterated its want for additional capital to help these expansions and signaled plans for one more fairness providing that might improve dilution threat.
For traders, key elements to look at embrace the ramp-up of Dorothy 2 and Kati 1, developments in working margins, and the flexibility to maintain value progress in test. The corporate’s future is dependent upon changing its giant pipeline of potential initiatives into operational and worthwhile property, whereas navigating market cycles in Bitcoin mining and internet hosting. Exterior capital stays important, and any delays or execution points may affect each progress and monetary stability.
Income and web earnings offered utilizing U.S. typically accepted accounting ideas (GAAP) except in any other case famous.
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