Executive Summary

Riot delivered record Q3 revenue of $180.2M and GAAP diluted EPS of $0.26, driven by higher bitcoin prices, increased operational hash rate, and strong power-credit execution .
Results beat S&P Global consensus: Revenue $180.2M vs $172.3M*, Primary EPS $0.19* vs $0.13*, and EBITDA $134.0M* vs $76.1M*; company-reported Adjusted EBITDA was $197.2M (note: different definitions) *.
Management advanced its data center pivot: initiated core & shell development on two Corsicana buildings (112MW), construction start Q1’26, first core/shell completion targeted Q1’27, and 600MW substation still guided to energize in Q1’26 .
Bitcoin mining KPIs remained strong: 1,406 BTC mined, cost to mine ex-D&A of $46,324/BTC, 86% utilization, 3.2 c/kWh net power cost, $31M in power credits; BTC holdings at quarter-end were 19,287 (~$2.2B) .
Potential stock catalysts: (1) first hyperscale/enterprise lease signing at Corsicana, (2) continued SG&A discipline, (3) conversion of megawatts into contracted data center leases (management expects a valuation re-rating upon lease signings) .

What Went Well and What Went Wrong

What Went Well
- Record quarterly revenue ($180.2M) and profitability: Net income $104.5M (EPS $0.26) and Adjusted EBITDA $197.2M, supported by higher BTC price and power strategy .
- Data center strategy milestones: initiation of 112MW core & shell; basis of design completed; 67-acre adjacent land acquisition enabling full 1GW on Riot-owned land; deepening technical engagement with hyperscalers/“NeoClouds” .
- Management tone on demand/pricing: “Demand for power is insatiable... they keep thinking they’re going to catch up, and they’re not” and confidence that location/timelines support “very strong economics” with high-quality tenants .
What Went Wrong
- BTC production dipped slightly QoQ (1,406 vs 1,426) as global network hash rate rose ~8% QoQ, outpacing Riot’s ~3% growth; cost to mine ex-D&A remained elevated at $46,324/BTC (down vs Q2 but above Q1) .
- No signed data center leases yet; timeline requires core & shell build (start Q1’26) and target energization in 2027, pushing revenue realization beyond 2026 .
- “Primary EPS” per S&P was below GAAP diluted EPS (0.19* vs $0.26), and S&P EBITDA actual (134.0M*) was well below company Adjusted EBITDA (197.2M), highlighting metric-definition gaps that may create investor confusion *.

Financial Results

Overall results vs prior quarters and vs S&P Global consensus (Q3 2025 only):

Metric	Q1 2025	Q2 2025	Q3 2025	Q3 2025 Consensus	Beat/Miss
Revenue ($M)	$161.4	$153.0	$180.2	$172.3*	+$7.9M*
GAAP Diluted EPS ($)	$(0.90)	$0.65	$0.26	n/a	n/a
Primary EPS ($, S&P)	n/a	n/a	$0.19*	$0.13*	+$0.06*
Adjusted EBITDA ($M, Company)	$(176.3)	$495.3	$197.2	n/a	n/a
EBITDA ($M, S&P)	n/a	n/a	$134.0*	$76.1*	+$57.9M*
Gross Margin (Overall)	46%	46%	56%	n/a	n/a
Bitcoin Mining Gross Margin	53%	50%	59%	n/a	n/a

Values marked with * are from S&P Global (consensus/actuals per S&P methodology).

Segment revenue mix:

Segment Revenue ($M)	Q1 2025	Q2 2025	Q3 2025
Bitcoin Mining	$142.9	$140.9	$160.8
Engineering	$13.9	$10.6	$19.1
Total	$161.4	$153.0	$180.2

Key KPIs and operating metrics:

KPI	Q1 2025	Q2 2025	Q3 2025
BTC Produced (#)	1,530	1,426	1,406
Cost to Mine ex-D&A ($/BTC)	$43,808	$48,992	$46,324
Hash Rate (Ending, EH/s)	33.7	35.4	36.5
Hash Rate Utilization (%)	88%	87%	86%
Net Cost of Power (c/kWh)	3.4	3.5	3.2
Power Credits ($M)	$7.8	$8.3	$31.0
BTC Held (#)	19,223	19,273	19,287

Notes: S&P “Primary EPS” and “EBITDA” differ from GAAP diluted EPS and company-reported Adjusted EBITDA. Consensus comparisons use S&P conventions.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Corsicana Core & Shell capex for first two buildings (112MW)	Next ~18 months	Not previously specified	~$214M total; ~$1.9M per IT MW; construction begins Q1’26; first core/shell completes Q1’27	Introduced
600MW substation expansion (Corsicana)	Q1 2026	“Early 2026”	Energization Q1 2026 (first 400MW auto transformer on-site/installing)	Maintained/refined timing
Corsicana Phase 1 campus (504MW critical IT)	Multi-year	Concept in prior materials	Phase 1 six 56MW + two 84MW buildings; pacing driven by lease signings	Clarified scope & sequencing
PUE base case (Corsicana)	Future operations	Not previously specified	~1.49 base case, targeting improvement	Introduced
Financial (Revenue/EPS/FCF) Guidance	2025/2026	None	None	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1–Q2 2025)	Current Period (Q3 2025)	Trend
Data center strategy & leasing	Feasibility study completed; engaged advisors; building team; “secure lease with tenant” in progress	Initiated 112MW core & shell; basis of design complete; heightened dialogues with hyperscalers/NeoClouds; location/timeline expected to command strong economics	Accelerating
Power constraints/macro	Grid bottlenecks; demand growth; long energization timelines	“Demand for power is insatiable”; scarcity supports leasing terms and valuations	Intensifying tailwind
Substation & timeline	Early 2026 completion communicated	Q1’26 energization for expansion component; supports 2027 delivery	On track
Cost discipline/SG&A	Highlighted economies of scale; Rhodium settlement to reduce drag	SG&A stable YoY vs revenue +110%; SBC expected to fall to ~$8M by Q3’26	Improving
Engineering backlog & synergies	Growing backlog; capex savings since ESS Metron acquisition	Record backlog $159.6M; ~90% data center; $23M cumulative capex savings	Strengthening
Mining efficiency	Q1/Q2: 48–50% GM; power strategy/curtailment credits	59% mining GM; $31M credits; 3.2c/kWh net power cost	Improving margins

Management Commentary

Strategic pivot: “We are initiating the core and shell development of the first two buildings at our Corsicana Data Center campus, representing 112 megawatts of critical IT... enabling delivery of build-to-suit data centers in 2027” .
Market backdrop: “Demand for power is insatiable… data center infrastructure looks likely to extend for years… they keep thinking they’re going to catch up, and they’re not” .
Leasing economics: “Location and readiness position us to get the best possible deal... we can command very strong economics and attract high-quality tenants” .
Portfolio value: “Riot currently trades at a meaningful discount despite one of the largest, fully approved, readily available power portfolios… converting MW to leases should drive re-rating” .
Capital & funding: “~$400M in Bitcoin and strong cash flows from mining help fund development” .

Q&A Highlights

Leasing path and prebuilding: Management emphasized core & shell (“core & shell plus”) de-risks timelines and provides leverage in negotiations with hyperscalers; it enables faster tenant fit-out and validates readiness for service in 2027 .
Site strategy beyond Corsicana: Rockdale (700MW approved, operating campus) shares attractive attributes; Corsicana near-term focus, Rockdale next logical step for future development .
Power pipeline: Company remains active in adding power capacity but will prioritize current high-ROI opportunity; higher hurdle for new additions near term .
Expected lease economics: Favorable locations (Dallas/Austin proximity) and delivery timelines support better pricing and higher-quality tenants (hyperscalers/enterprise/NeoClouds) .
PUE/efficiency: Base case PUE ~1.49 with efforts to improve; capex for first cores & shells ~$214M with long-lead items being secured in a capital-efficient way .

Estimates Context

Q3 2025 actuals vs S&P Global consensus (S&P methodologies/definitions):

Metric	Actual	Consensus	Surprise
Revenue ($M)	180.229*	172.299*	+7.930*
Primary EPS ($)	0.1886*	0.1337*	+0.0550*
EBITDA ($M)	134.045*	76.055*	+57.990*

Values retrieved from S&P Global*. Note: S&P “Primary EPS” and “EBITDA” differ from GAAP diluted EPS and company “Adjusted EBITDA” ($197.2M) .

Implications:

Across S&P metrics, Q3 was a broad beat; we expect upward revisions to near-term revenue/EBITDA and potential multiple support as investors frame Riot through a data center optionality lens.
Watch for consensus adjustments to incorporate core & shell timeline, PUE assumptions, and the cadence of potential lease signings.

Key Takeaways for Investors

Near-term: Q3 delivered revenue/EPS/EBITDA beats vs S&P; mining margins benefited from power credits and higher BTC pricing; tactical trades may track BTC price and further curtailment credits *.
Medium-term: Core & shell initiation (112MW) and substation energization in Q1’26 underpin a 2027 delivery path, setting the stage for lease announcements that could re-rate valuation per MW .
Execution focus: Leasing with high-credit hyperscalers/enterprises is the critical next catalyst; management indicates strong interest and leverage from location/timelines .
Cost structure: SG&A discipline and SBC step-down by Q3’26 improve earnings quality; engineering synergies reduce capex and de-risk supply chain .
Risk factors: Absence of signed leases, BTC price/ hash-price volatility, and industry lead times for power/fiber could push monetization timing .
Capital resources: $330.7M cash, $75.6M restricted cash, and 19,287 BTC (~$2.2B at $114,068) provide funding for development without near-term equity needs .
Monitoring: Track (1) first lease signing, (2) substation energization progress, (3) BTC mining cost to mine and power credit cadence, (4) engineering backlog and deliveries .

All non-S&P figures are sourced from Riot’s Q3 2025 8‑K and earnings materials or prior-quarter filings/transcripts: record revenue, EPS, mining metrics, power strategy, engineering backlog, capex plans, and management commentary . Values marked with * are retrieved from S&P Global.

Riot Platforms, Inc. (RIOT)·Q3 2025 Earnings Summary