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Soluna Holdings, Inc (SLNH)·Q1 2025 Earnings Summary

Executive Summary

  • Revenue was $5.94M for Q1 2025, down from $12.55M in Q1 2024, driven by BTC halving/hash price volatility, a one-time shift to Profit Share contracts, weather-related downtime, and lower ERCOT demand response revenue .
  • Adjusted EBITDA was a loss of $1.65M, an improvement from Q4 2024’s loss of $2.52M, reflecting expense mitigation following the HPE contract termination .
  • The project pipeline expanded to ~698 MW (Hedy/Ellen added 220 MW); Project Dorothy 2 was energized and is ramping with anticipated annual revenue of $19–$25M and total hosting capacity rising to 123 MW by Q4 2025 .
  • Capital structure simplification and non-dilutive financing ($5M Galaxy facility secured by Project Sophie) strengthen funding flexibility for execution on pipeline projects .

What Went Well and What Went Wrong

What Went Well

  • “Our outlook shines brighter with expanding project development at Projects Rosa, Ellen, and Hedy” – CEO highlighting pipeline growth and execution .
  • Dorothy 2 energization initiated; phase 1 ramping now, remaining phases targeted for completion by Q4 2025; anticipated annual revenue $19–$25M .
  • Financing progress and simplification: fully converted convertible notes (Q4 2024), paid off Navitas loan at Dorothy 1B, modified Series B; $5M Galaxy debt for Sophie; “strengthened our ability to raise the growth capital needed” – CFO .

What Went Wrong

  • Revenue declined YoY due to BTC halving/hash price, commercial model mix shift to Profit Share (no gross profit impact, one-time), downtime from weather/customer change-out, and lower demand response participation .
  • Gross profit fell to $1.17M from $6.93M YoY; SG&A (ex-D&A) increased by $2.0M YoY due to stock comp and professional fees, pressuring operating results .
  • Net loss attributable to Soluna widened YoY to $(7.56)M; EPS was $(0.88), reflecting revenue/gross profit headwinds and higher SG&A .

Financial Results

Year-over-Year (Q1 2024 vs Q1 2025)

MetricQ1 2024Q1 2025
Revenue ($USD)$12.549M $5.936M
Gross Profit ($USD)$6.934M $1.173M
Net Loss Attributable to Soluna ($USD)$(5.254)M $(7.556)M
Basic & Diluted EPS ($USD)$(2.62) $(0.88)
Adjusted EBITDA ($USD)$5.147M $(1.648)M

Sequential Trend (Q3 2024 → Q4 2024 → Q1 2025)

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD)$7.525M $8.300M $5.936M
Adjusted EBITDA ($USD)$(3.482)M $(2.520)M $(1.648)M

Segment/Project Revenue (External Customers)

SegmentQ1 2024 ($USD)Q1 2025 ($USD)
Cryptocurrency Mining$6.396M $2.999M
Data Center Hosting$5.278M $2.402M
High-Performance Computing Services$0.000M $0.028M
Demand Response (Reconciling to consolidated revenue)$0.875M $0.507M
Total Consolidated Revenue$12.549M $5.936M

Selected KPIs

KPIQ1 2024Q1 2025
Unrestricted Cash ($USD)$7.8M (as of 12/31/2024) $9.161M (cash on balance sheet)
Demand Response Revenue ($USD)$0.875M $0.507M
Project Pipeline (MW)N/A~698 MW (incl. Hedy/Ellen additions)
Hosting Capacity (Dorothy total, post-expansion)75 MW (1A/1B combined, context FY release) 123 MW target by Q4 2025

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue Outlook (qualitative)FY 2025 trajectoryN/A“Revenue to stabilize and grow” as Dorothy 2/Kati commission over next 2 years Introduced
Dorothy 2 Capacity (MW)Q4 2025 completionN/A48 MW phased, total company hosting capacity to 123 MW by Q4 2025 Introduced
Dorothy 2 Anticipated Annual Revenue ($USD)Post-full rampN/A$19–$25M Introduced
Project Kati (MW)Development in 2025+N/A166 MW shovel-ready; capital formation underway Introduced
New Projects (Hedy/Ellen) (MW)DevelopmentN/A+220 MW added (Hedy 120 MW, Ellen 100 MW) Introduced

Note: No explicit numeric guidance provided for consolidated revenue, margins, OpEx, OI&E, tax rate, or dividends in Q1 2025 disclosures .

Earnings Call Themes & Trends

(Company did not publish a Q1 2025 earnings call transcript; themes derived from Q3 2024 and FY/Q1 press releases.)

TopicQ-2 (Q3 2024)Q-1 (Q4 2024)Current (Q1 2025)Trend
AI/HPC strategyLaunched Soluna Cloud; HPE partnership; 512 H100 SXM GPUs planned Strategic termination of HPE GPU contract to mitigate losses; refocus on AI/HPC via Kati CloudCo termination finalized; refocus on crypto-mining and future AI data centers Pivot from GPUaaS to project-based AI/HPC development
Bitcoin hosting capacityDorothy 2 groundbreaking; financing secured Construction started; initial powering up underway Dorothy 2 energized; phased ramp through Q4 2025 to 48 MW; total hosting 123 MW Execution and ramp advancing
Pipeline expansion2.6 GW long-term pipeline; active TS for 1.2 GW Term sheets for Rosa; capital structure simplification Pipeline to ~698 MW in operations/construction/development; adds Hedy/Ellen 220 MW Continued expansion, focus on ERCOT
Macro/Hash priceResilient YTD growth despite halving Q4 revenue growth from higher hash price Q1 revenue decline on halving/hash volatility; expect stabilization Near-term pressure, medium-term normalization
ERCOT/DRSDRS notable contributor DRS $2.1M in FY 2024 Lower DRS revenue due to higher participation rates within ERCOT Headwind to ancillary revenue
Patents/Tech IP——Second utility patent awarded (US12250794B2) Building IP portfolio

Management Commentary

  • CEO: “Our outlook shines brighter with expanding project development at Projects Rosa, Ellen, and Hedy...We believe these milestones continue to demonstrate our growth potential.”
  • CFO: “We are focused on the growth of our substantial pipeline of projects into AI/HPC data centers during 2025, beginning with Project Kati.”
  • CFO on capital structure: “Fully converting the outstanding convertible loan notes…paying off the Navitas loan at Project Dorothy 1B and securing modifications to the terms of our Series B Preferred Stock…strengthened our ability to raise the growth capital needed to execute on our strategic plan.”
  • CEO on Dorothy 2: “The energization of Project Dorothy 2 builds on the success of Project Dorothy 1…we continue to attract the industry’s top Hyperscaler miners…”

Q&A Highlights

  • No Q1 2025 earnings call transcript was available; no formal Q&A to summarize [ListDocuments returned none].

Estimates Context

  • S&P Global consensus coverage appears unavailable for Q1 2025 EPS and revenue; no consensus estimates were returned. Actuals shown below for context. Values retrieved from S&P Global.*
MetricQ1 2025 ConsensusQ1 2025 Actual
Revenue ($USD)N/A*$5.936M
Primary EPS ($USD)N/A*$(0.88)

*Values retrieved from S&P Global.

Where estimates may need to adjust: With Dorothy 2 energization underway and $19–$25M anticipated annual revenue from the site post-ramp, models should reflect sequential improvement in hosting revenue in Q2–Q4 2025 and reduced CloudCo expense drag following the HPE termination .

Key Takeaways for Investors

  • Revenue headwinds in Q1 2025 were primarily macro/operational (BTC halving/hash price, model mix, weather/downtime, ERCOT DRS), not structural demand, supporting a constructive sequential trajectory as new capacity ramps .
  • Sequential Adjusted EBITDA improved to $(1.65)M from $(2.52)M in Q4 2024, aided by CloudCo termination and expense mitigation; further improvement likely as Dorothy 2 ramps .
  • Dorothy 2 energization and a 698 MW pipeline add visibility to multi-quarter capacity growth; Dorothy 2’s $19–$25M annual revenue potential is a tangible catalyst for revenue normalization and scale .
  • Capital structure simplification and $5M Galaxy project-level debt enhance funding options with limited parent recourse, lowering financing friction for project execution .
  • Demand response revenue declined due to ERCOT participation dynamics; investors should temper expectations for ancillary revenue while focusing on hosting ramp as the primary growth lever .
  • SG&A (ex-D&A) increased $2.0M YoY due to stock comp/professional fees tied to SEPA and compliance; watch cost discipline as projects transition from build to operate .
  • Absent Street coverage, trading may be driven by operational updates (energization milestones, new hosting contracts, ERCOT approvals) rather than earnings “beats/misses.” Monthly updates and project releases provide near-term catalysts .