Executive Summary

Q1 2025 revenue was $2.82M, down sharply year over year due to post‑halving economics and downtime from hosting transitions; EPS was a net loss of $0.32, and net loss widened to $8.8M . Management emphasized vertical integration and cost control, with the new Iowa site energized in March and operated under a managed services agreement .
The Company settled litigation with Gryphon without payments, removing a distraction; Sphere ended a Rebel hosting agreement with a $2.4M termination settlement payable to Sphere .
Versus S&P Global consensus, revenue beat ($2.82M actual vs $2.15M estimate) while EPS missed (‑$0.293 vs ‑$0.26), with only one covering estimate per metric; results likely prompt downward EPS adjustments and cautious near‑term sentiment given operational transition headwinds [Values retrieved from S&P Global].
Key stock reaction catalysts: Iowa site launch and operational self‑help, litigation overhang cleared, but Nasdaq minimum bid price deficiency notice introduces event‑risk (reverse split option) .

What Went Well and What Went Wrong

What Went Well

“We remain focused on reducing reliance on third‑party providers and taking greater control of our operations to improve cash flow and long‑term profitability,” said Interim CEO Kurt Kalbfleisch, highlighting strategic shift to vertical integration and SG&A discipline .
Iowa site energized in March with Simple Mining managing operations; management framed vertical integration as improving margins and efficiency under low energy prices and better power procurement .
Litigation with Gryphon dismissed on mutually satisfactory terms with no cash payments; Rebel hosting termination yielded a $2.4M settlement payable to Sphere, strengthening liquidity and eliminating counterparty risks .

What Went Wrong

Bitcoin production fell to 30.5 BTC from 144.8 BTC YoY; revenue declined to $2.8M from $6.9M YoY driven by halving economics and downtime during transition away from high‑cost hosting .
Net loss widened to $8.8M (‑$0.32 per share) vs. $4.5M (‑$0.27) YoY; investment loss increased to $3.7M from $2.7M, reflecting mark‑to‑market and non‑operating headwinds .
Nasdaq minimum bid price deficiency notice: 180‑day window to regain compliance, with potential reverse split if needed—introduces corporate action uncertainty and potential trading volatility .

Financial Results

Core P&L and Margins vs Prior Periods

Metric	Q3 2024	Q4 2024 (derived)	Q1 2025
Revenue ($USD Millions)	$2.355	$2.641	$2.817
Net Income ($USD Millions)	$0.104	$(7.221)	$(8.785)
Diluted EPS ($USD)	$0.005	N/A (not disclosed)	$(0.32)
Total Operating Expenses ($USD Millions)	$7.508	$11.322	$8.005
Depreciation & Amortization ($USD Millions)	$1.737	$1.739	$1.606
Net Income Margin (%)	4.4% (0.104/2.355)	−273.4% (−7.221/2.641)	−311.9% (−8.785/2.817)

Note: Q4 2024 values derived from FY 2024 totals minus 9M 2024 results presented in Q3 2024 8‑K .

Segment Breakdown

Segment	Q3 2024 Revenue ($USD Millions)	Q4 2024 Revenue ($USD Millions)	Q1 2025 Revenue ($USD Millions)
Bitcoin Mining	$2.355	$2.641	$2.817

Note: Service and Product segment was sold in December 2023 and no longer reported .

KPIs

KPI	Q3 2024	Q4 2024	Q1 2025
Bitcoin Mined (BTC)	38.7	N/A	30.5
Operational Hashrate (EH/s)	~0.7	~0.76 capacity at 12/31	N/A (Iowa site energized Mar 10, 2025)
Bitcoin Balance (# / $USD Millions)	1.3 / ~$0.08	14.9 / ~$1.4	22.7 / ~$1.9
Cost of Bitcoin Mining Revenue ($USD Millions)	$2.731	$2.381	$2.194
General & Administrative ($USD Millions)	$3.032	$2.975	$3.169

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q1 2025	None issued	None issued	Maintained (no formal guidance)
Margins	FY/Q1 2025	None issued	None issued	Maintained (no formal guidance)
OpEx	FY/Q1 2025	None issued	Opex discipline emphasized; no numeric guidance	Maintained (qualitative only)
Other (OI&E, tax, dividends)	FY/Q1 2025	None issued	None issued	Maintained (no formal guidance)

Management did not provide quantitative guidance ranges; commentary focused on vertical integration and cost controls .

Earnings Call Themes & Trends

Note: No Q1 2025 earnings call transcript found in our document set; themes below reflect press releases and filings.

Topic	Previous Mentions (Q3 2024 and Q4 2024)	Current Period (Q1 2025)	Trend
Vertical integration / hosting strategy	LOI with Simple Mining for Iowa; exit high‑cost hosting; temporary downtime; $3.0M inflow from hosting buyout	Iowa site energized; managed services agreement; focus on owning/operating infrastructure	Strengthening; execution milestone achieved
Post‑halving economics	Halving in Apr 2024 cited as less favorable economics; production fluctuations	Continued pressure on BTC production and revenue YoY	Persistent headwind
Fleet refresh	Replaced S19j Pros with S19 XPs and S21s in Q4 2024	Ongoing process replacing older equipment with newer generation	Ongoing efficiency upgrade
Legal / regulatory	Corporate settlements (Core Scientific equity), strategic updates in 2024	Gryphon litigation dismissed; Nasdaq bid price deficiency notice	Mixed: legal overhang removed; listing risk emerges
Cost management	Opex reduced YoY/QoQ in Q3/Q4 2024	Opex $8.0M vs $8.8M YoY; D&A down YoY	Ongoing discipline

Management Commentary

“We remain focused on reducing reliance on third‑party providers and taking greater control of our operations to improve cash flow and long‑term profitability…create a more durable business model designed to perform across market cycles” — Interim CEO Kurt Kalbfleisch .
“By taking full control of our mining infrastructure, we can operate more efficiently, improve margins, and future‑proof our business against shifting industry dynamics” — Acting CEO Kurt Kalbfleisch on Iowa site launch .
Strategic priorities highlighted: disciplined scaling, SG&A reduction, and positioning to benefit from long‑term Bitcoin adoption .

Q&A Highlights

No Q1 2025 earnings call transcript was identified in the available documents; no Q&A themes or clarifications to report based on our sources [ListDocuments Earnings Call returned no 2025 transcripts for ANY].

Estimates Context

Metric	Consensus (Q1 2025)	Actual (Q1 2025)	Surprise
Revenue ($USD)	$2.149M*	$2.817M	$0.67M beat; +31% vs consensus*
Primary EPS ($USD)	−$0.26*	−$0.293 (Primary EPS)*/−$0.32 (diluted)	−$0.03 miss vs consensus*

Values marked with * were retrieved from S&P Global and reflect analyst consensus at quarter‑end; only one estimate was recorded for each metric (Revenue: 1; EPS: 1)*. The diluted EPS disclosed was −$0.32 .

Implications: Despite a revenue beat, the EPS miss reflects pressure from investment losses and fair value changes in Bitcoin, alongside transition‑related downtime and loss on disposal of equipment . Estimates likely need to adjust downward for near‑term EPS while carrying upside optionality if Iowa site efficiencies and fleet refresh reduce unit costs .

Key Takeaways for Investors

Execution milestone: Iowa site energized and operated under managed services, supporting the pivot to vertical integration and potential margin improvement as self‑run infrastructure scales .
Near‑term headwinds: Post‑halving economics and transition downtime materially reduced BTC production and revenue; expect continued volatility in quarterly outputs during fleet refresh .
Cost discipline credible: Operating expenses declined YoY; D&A down YoY; management reiterates SG&A focus—monitor OpEx trajectory as Iowa operations ramp .
Balance sheet sensitivity: Investment loss widened YoY; fair value changes in Bitcoin impact reported results—EPS volatility tied to market marks .
Event risk: Nasdaq minimum bid price deficiency notice may precipitate corporate actions (e.g., reverse split); trading overhang until compliance regained .
Legal overhang removed: Gryphon settlement dismissed without payments; reduces distraction and potential cash outflows .
Trading setup: Revenue beat vs consensus contrasts with EPS miss; stock narrative hinges on execution of site ramp, hash recovery, and unit cost improvements—watch updates on hashrate and BTC production cadence in coming months .

Appendix: Additional Data Extracts

Q1 2025 detailed financials: Revenue $2.817M; Cost of Bitcoin mining revenue $2.194M; G&A $3.169M; D&A $1.606M; Investment loss $3.650M; Net loss $8.785M; diluted EPS $(0.32) .
Q3 2024 comparables: Revenue $2.355M; Opex $7.508M; D&A $1.737M; Net income $0.104M; BTC mined 38.7; operational hashrate ~0.7 EH/s .
FY 2024 totals (for derivations): Total revenues $16.608M; Opex $38.019M; net loss attributable to common shareholders $(9.470)M . Derived Q4 2024 revenue $2.641M; Opex $11.322M; net loss $(7.221)M (FY − 9M) .

Quotes and operational updates:

Iowa site launch press release reinforcing margin and efficiency rationale .
Litigation end and hosting agreement termination/settlement details .

Forward‑looking statements and risk reminders are included within the company’s 8‑Ks .

Sphere 3D Corp. (ANY)·Q1 2025 Earnings Summary