Sign in

You're signed outSign in or to get full access.

MI

Mawson Infrastructure Group Inc. (MIGI)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue beat consensus: $15.07M vs $14.40M; EPS missed: -$0.29 vs -$0.22. The combination is a top-line beat but bottom-line miss, with improving loss trajectory into year-end [Q4 revenue/EPS consensus and actuals from S&P Global]*.
  • Management emphasized transformation into a multi-tenant digital infrastructure platform and expansion into AI/HPC, onboarding enterprise-grade customers and operating 129 MW (with 24 MW under development) powered by carbon‑free energy .
  • December 2024 monthly run‑rate showed continued momentum: total monthly revenue ~$5.26M; digital colocation monthly revenue ~$4.49M (+69% Y/Y) .
  • A signed AI/HPC 20 MW GPU colocation agreement carries potential revenue of ~$92M in the first two years and ~$285M cumulatively over six years, a forward narrative catalyst contingent on ramp, timing, and rate resets .
  • No formal quantitative guidance was provided for Q1 2025 or FY 2025; legal overhang emerged in December due to an involuntary Chapter 11 petition (which the company said it would vigorously defend), but operations were expected to continue .

What Went Well and What Went Wrong

What Went Well

  • Top-line beat with strong Q4 revenue against consensus; December monthly revenue growth reinforced exit‑quarter demand in colocation and energy management [Q4 revenue vs consensus from S&P Global]* .
  • Strategic expansion into AI/HPC and multiple enterprise customers, with year-end footprint of 129 MW and 24 MW under development, prioritizing carbon‑free energy; “expanded our platform offerings into artificial intelligence and high-performance computing markets” .
  • Signed AI/HPC GPU colocation contract with multi‑year revenue potential: “could potentially generate approximately $92 million in the first two years, with cumulative revenue potential of $285 million through the 6-year contract term” .

What Went Wrong

  • EPS missed consensus in Q4 (-$0.29 actual vs -$0.22 est), and EBITDA remained negative despite improving trajectory Q/Q [Q4 EPS vs consensus from S&P Global]* [GetFinancials Q/Q EBITDA values from S&P Global]*.
  • Gross margin volatility and negative EBITDA margin persisted; despite improvement vs Q3, profitability remains sensitive to ramp timing and mix [GetFinancials margins from S&P Global]*.
  • Emergent legal overhang (involuntary Chapter 11 petition filed against the company) raised headline risk, though MIGI stated it expects to continue operations and will defend vigorously .

Financial Results

Consolidated Revenue and EPS vs prior periods and estimates

MetricQ4 2023Q2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$14.02 $13.11 $12.32 $15.07*
Diluted EPS ($USD)-$0.76 -$0.55*-$0.66*-$0.29*
Revenue Consensus ($USD Millions)N/AN/AN/A$14.40*
EPS Consensus ($USD)N/AN/AN/A-$0.22*

Notes: Values with asterisk (*) retrieved from S&P Global.

Profitability and Margin Trends (Quarterly)

MetricQ2 2024Q3 2024Q4 2024
Gross Profit Margin %32.93%*35.07%*30.90%*
EBITDA ($USD)-$0.39M*-$6.99M*-$3.35M*
EBITDA Margin %-2.94%*-56.79%*-22.22%*
EBIT ($USD)-$4.98M*-$10.61M*-$5.01M*
Net Income ($USD)-$9.62M*-$12.23M*-$4.52M*
Net Income Margin %-73.36%*-99.28%*-30.01%*

Notes: Values with asterisk (*) retrieved from S&P Global.

Segment Breakdown (as disclosed)

SegmentQ2 2024Q3 2024Q4 2024
Digital Colocation Revenue ($USD Millions)$8.13 $9.52 Not disclosed
Energy Management Revenue ($USD Millions)$1.73 $1.96 Not disclosed
Digital Assets Mining Revenue ($USD Millions)$3.25 $0.83 Not disclosed

KPIs and Operating Metrics

KPIQ2/Q3 2024Q4 2024 / FY Exit
Operating Capacity (MW)~129 MW after Midland expansion 129 MW operating; +24 MW under development (Ohio)
Operating Hash Rate (EH/s)N/A4.98 EH/s (nameplate)
December 2024 Total Monthly Revenue ($USD Millions)N/A~$5.26; colocation ~$4.49; energy mgmt ~$0.41; digital assets mining ~$0.36

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025/Q1 2025Not providedNot providedMaintained (no formal guidance)
Margins (GM/EBITDA)FY 2025/Q1 2025Not providedNot providedMaintained (no formal guidance)
AI/HPC Contract Revenue Potential6-year termNot previously disclosed~$92M first two years; ~$285M cumulative 6-year potential (subject to ramp and rate resets)New disclosure
Dividends/OtherFY 2025Not providedNot providedMaintained (no formal guidance)

Earnings Call Themes & Trends

Note: A Q4 2024 earnings call transcript was not available; themes are derived from Q2/Q3 press releases and FY 2024 8‑K press materials.

TopicPrevious Mentions (Q-2: Q2 2024; Q-1: Q3 2024)Current Period (Q4 2024)Trend
AI/HPC initiativesExpanded into AI/HPC; executed 20 MW GPU colocation agreement Continued AI/HPC expansion; multiple enterprise customers; platform focus Accelerating
Digital Colocation performanceQ2: $8.13M (+77% Y/Y) ; Q3: $9.52M (+222% Y/Y) December monthly colocation ~$4.49M (+69% Y/Y) Sustained growth
Energy ManagementQ2: $1.73M (+70% Y/Y) ; Q3: $1.96M (+33% Y/Y) December monthly energy mgmt ~$0.41M (+25% M/M) Stable to improving
Capacity and infrastructureMidland expanded to 120 MW; combined ~129 MW ; Ohio phase 1 groundwork 129 MW operating; 24 MW under development (Ohio) Expanding
Regulatory/legalN/A in Q2N/A in Q3Involuntary Chapter 11 petition filed against company; MIGI plans vigorous defense; operations expected to continue

Management Commentary

  • “We have led the Company through a journey of transformation… expanded our platform offerings into artificial intelligence and high-performance computing markets… transformed Mawson into a multi-tenant digital infrastructure platform” — Rahul Mewawalla, CEO/President .
  • “Delivered 222% Y/Y revenue growth in our digital colocation business… excited about advancing our recent expansion into AI and HPC… carbon-free and sustainable energy approach, including nuclear power” .
  • December operational update: “significant upgrades and advancements… robust year-on-year and monthly revenue growth… acquired and signed several enterprise-grade customers” .

Q&A Highlights

  • A Q4 2024 earnings call transcript could not be located; management’s disclosures were provided via the FY results 8‑K and related press releases .
  • Key clarifications from disclosures: AI/HPC 20 MW contract revenue potential depends on ramp timing and rate updates every two years .
  • No formal quantitative guidance ranges (revenue/margins/OpEx) were provided for the upcoming period .

Estimates Context

  • Q4 2024 Wall Street consensus (S&P Global): Revenue $14.40M; EPS -$0.22. Actuals: Revenue $15.07M; EPS -$0.29. Result: revenue beat, EPS miss [Q4 consensus/actuals from S&P Global]*.
  • With December monthly momentum and AI/HPC pipeline, consensus may need to reflect stronger top‑line capacity, but EPS trajectories hinge on ramp timing, energy costs, and mix of colocation vs mining .

Notes: Values with asterisk (*) retrieved from S&P Global.

Key Takeaways for Investors

  • Top-line strength continued into Q4 with a revenue beat; exit‑quarter monthly data suggests sustained colocation demand and improving energy management contributions [Q4 revenue vs consensus from S&P Global]* .
  • EPS miss underscores ongoing margin pressure; however, EBITDA trajectory improved vs Q3 as operations scale and mix evolves toward colocation and AI/HPC [GetFinancials margin/EBITDA from S&P Global]*.
  • AI/HPC 20 MW GPU contract is a pivotal narrative catalyst; revenue realization depends on deployment pace, rate resets, and operational readiness at Ohio and other sites .
  • Capacity: 129 MW operating, 24 MW under development positions MIGI to serve enterprise-grade compute needs with a carbon‑free profile (including nuclear), a differentiator for AI/HPC workloads .
  • Legal overhang from the involuntary Chapter 11 petition introduces headline risk; the company stated operations will continue and it will defend vigorously, but investors should monitor developments .
  • Lack of formal guidance increases reliance on monthly updates and contract execution milestones; near‑term trading could react to further AI/HPC customer additions and deployment updates .
  • Medium-term thesis: transition toward higher‑margin colocation/AI/HPC services, with improving profitability as utilization ramps and energy management scales; watch margin progression and capital needs.