Greenidge Generation Holdings Inc. (GREE)·Q2 2025 Earnings Summary

Executive Summary

• Q2 2025 revenue was $12.9M, with segment mix shifting sharply toward hosting and away from power; sequential revenue fell from $19.2M in Q1 2025 as power and capacity revenue declined to $2.6M from $9.2M, while net loss narrowed to $4.1M from $5.6M .
• Adjusted EBITDA improved year over year to $0.4M from a $(0.1)M loss in Q2 2024, but decreased sequentially versus $1.0M in Q1 2025; EBITDA was a $(0.2)M loss in Q2 2025 .
• Capital structure actions were a key catalyst: the cash tender/exchange offers were oversubscribed and reduced GREEL principal materially—first to ~$44.6M by mid‑August, then to ~$38.41M by September 29, 2025 .
• Strategic updates included purchasing a 37‑acre Mississippi site (targeting ~44 MW by July 2026), improved fleet efficiency (23.6 J/TH), and a 99.6% July energy availability rate; however, the planned South Carolina property sale was terminated on August 24, 2025, removing a potential cash inflow .

What Went Well and What Went Wrong

What Went Well

• Year-over-year profitability improvement: Adjusted EBITDA turned positive to $0.4M in Q2 2025 from $(0.1)M in Q2 2024, signaling progress on cost and mix despite a soft power quarter .
• Debt reduction and liability management: Tender/exchange actions were oversubscribed and progressively lowered 2026 notes outstanding—first to ~$44.6M by August 13, then to ~$38.41M by September 29—supporting future flexibility .
• Operational execution: Management highlighted fleet efficiency at 23.6 J/TH and a 99.6% July energy availability rate at Dresden, supporting uptime and cost performance. CEO: “we have significantly reduced our October 2026 debt obligations by $27.6 million since October 2024…focused on aggressively pursuing strategic opportunities” .

What Went Wrong

• Sequential revenue compression driven by power: Revenue fell to $12.9M from $19.2M as power and capacity declined to $2.6M from $9.2M, partially offset by steady mining ($4.2M) and modest hosting growth ($6.0M vs $5.8M) .
• EBITDA deterioration: EBITDA moved to a $(0.2)M loss in Q2 versus $0.4M in Q1; adjusted EBITDA fell to $0.4M from $1.0M sequentially, indicating reduced operating leverage in the quarter .
• Asset sale setback: The South Carolina property sale was terminated, removing a planned $12.1M cash transaction and introducing uncertainty around monetization of that asset .

Financial Results

Segment breakdown and production:

Margins (SPGI values):

Values retrieved from S&P Global.*

Guidance Changes

Note: Company did not issue quantitative revenue/EPS guidance ranges for Q2/FY; commentary focused on strategic initiatives and capital structure .

Earnings Call Themes & Trends

No Q2 2025 earnings call transcript was found in the document catalog for the period; themes are synthesized from company 8‑K/press releases across quarters.

Management Commentary

• CEO Jordan Kovler (Q2 2025): “we have significantly reduced our October 2026 debt obligations by $27.6 million since October 2024…focused on aggressively pursuing strategic opportunities to maximize value…including further restructuring…at a significant discount to par value” .
• Q1 2025: “disciplined execution and prudent financial management…advanced the turnaround…made substantial progress on debt reduction…explore strategic transactions to right-size capital structure and upscale mining operations” .
• Q4 2024: “took significant steps to further right-size the business…reduced SG&A by almost $9 million…execute on long-term growth plan…potential acquisition of a property with over 200MW of low-cost power assets” .

Q&A Highlights

No Q2 2025 earnings call transcript was available; management’s press release commentary emphasized:

• De‑leveraging strategy via tender/exchange and potential further restructuring at discounts to par .
• Operational scaling (Mississippi site purchase, fleet efficiency, uptime) to support mining/hosting economics .
• Clarification on equity issuance: no ELOC sales in Q2; no current plans to utilize the ELOC .

Estimates Context

S&P Global consensus coverage for Q2 2025 appears limited; EPS and revenue consensus were not available.

• Actual revenue: $12.9M (no published consensus to compare) .
• EPS consensus: unavailable; company did not report EPS in press materials; net loss was $(4.1)M .

Values retrieved from S&P Global where estimates are referenced.*

Key Takeaways for Investors

• Mix shift was the story: power and capacity revenue fell sharply QoQ, compressing total revenue and EBITDA; hosting remained resilient and mining was steady .
• De‑leveraging is a tangible catalyst: oversubscribed tender/exchange lowered GREEL principal outstanding materially, improving flexibility and potential cost of capital .
• Operations are stabilizing: strong July uptime (99.6%) and fleet efficiency (23.6 J/TH) underpin cost discipline and service reliability .
• Asset rotation continues: new Mississippi site (target ~44MW by July 2026) and sale of the existing 7.5MW MS facility support footprint optimization, but SC sale termination removes a near‑term cash source .
• Profitability trajectory: Adjusted EBITDA is improving YoY, but sequential softness highlights sensitivity to power/capacity dynamics; focus on contracting and seasonal drivers is warranted .
• Near‑term trading implication: headlines on further debt actions or site acquisitions could swing sentiment; absence of equity issuance (ELOC) in Q2 is supportive for dilution risk .
• Medium‑term thesis: execution on low‑cost power expansion and continued debt reduction are central to margin recovery and balance sheet normalization; monitor regulatory progress at Dresden and timelines for Mississippi capacity .

Appendix: Additional Quantitative Details

Operating metrics and liquidity:

Tender/Exchange offer milestones: