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Soluna Holdings, Inc (SLNH)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $6.16M, up 3.7% q/q from $5.94M but down 36.3% y/y from $9.68M; GAAP EPS improved to $(0.69) vs $(0.88) in Q1 and $(2.97) in Q2 2024, with gross margin steady at 19.3% .
  • Versus S&P Global consensus, EPS beat (Actual: $(0.49) vs $(0.76)) while revenue missed ($6.16M vs $8.10M). Management cited Bitcoin halving and lower hashprice as key headwinds, partially offset by cost control and stable site-level margins .
  • Execution updates: Dorothy 2 welcomed first customers and remains on track for full energization in Q4 2025; Project Kati 1 secured $20M funding (35 MW) and expanded to 83 MW via a 48 MW Galaxy partnership, targeting initial energization in early 2026 .
  • Management transition: CFO John Tunison to depart Aug 21; board member David Michaels named interim CFO—company emphasized continuity and prior milestones achieved under Tunison .

What Went Well and What Went Wrong

  • What Went Well

    • “Fourth quarter in a row of Adjusted EBITDA growth,” improving by $0.4M q/q despite a 5% decline in average hashprice to $51 and steady 19% gross margin .
    • Scaling pipeline and customers: Dorothy 2 onboarding, plus expanded hosting deployments with Blockware, Compass Mining and other top-tier miners; increased long-term clean energy pipeline to 2.8 GW .
    • Strategic funding and partnerships: Closed $20M Spring Lane funding for Kati 1 (35 MW), then expanded with Galaxy by 48 MW to bring Kati 1 to 83 MW, construction to launch by end of August and ops expected Q1 2026 .

  • What Went Wrong

    • Revenue fell $3.52M y/y due to Bitcoin halving and hashprice volatility ($2.0M impact), mix shift to profit-sharing (offset in COGS), lower proprietary mining ($0.6M), and lower demand response (~$0.1M); Adjusted EBITDA declined $3.0M y/y .
    • Net loss remained elevated at $(7.78)M (vs $(9.15)M y/y and $(7.35)M q/q), reflecting higher operating loss and increased interest/other costs, partially offset by prior-year non-cash items .
    • Project-level gross profit compressed vs last year as hosting mix expanded and hashprice softened; Q2 2025 consolidated gross profit was $1.19M vs $4.11M in Q2 2024 .

Financial Results

MetricQ2 2024Q1 2025Q2 2025Q2 2025 Consensus*
Revenue ($USD Millions)$9.68 $5.94 $6.16 $8.10*
GAAP EPS ($)$(2.97) $(0.88) $(0.69) $(0.76)*
Net Loss ($USD Millions)$(9.15) $(7.35) $(7.78) —
Gross Profit ($USD Millions)$4.11 $1.17 $1.19 —
Gross Margin (%)42.5% —19.3% —
EBITDA ($USD Millions)$(5.44) $(3.06) $(3.20) —

*Values retrieved from S&P Global.

Segment breakdown (revenue and operating income)

SegmentQ2 2024Q2 2025
Cryptocurrency Mining Revenue ($M)$4.48 $2.86
Data Center Hosting Revenue ($M)$4.90 $3.14
Demand Response Services ($M)$0.29 $0.16
Segment Operating Income – Crypto ($M)$1.34 $(0.13)
Segment Operating Income – Hosting ($M)$2.07 $0.63
Segment Operating Income – HPC ($M)$(0.06) $(0.11)
Total Segment Operating Income ($M)$3.35 $0.39

KPIs – Site revenue/gross profit

Site (Soluna Digital)Q2 2024 Revenue ($K)Q2 2025 Revenue ($K)Q2 2024 Gross Profit ($K)Q2 2025 Gross Profit ($K)
Project Dorothy 1B$4,484 $2,861 $1,536 $20
Project Dorothy 1A$3,567 $1,653 $1,519 $528
Project Dorothy 2$0 $210 $0 $(272)
Project Sophie$1,331 $1,273 $762 $751
Other / Demand Response$293 $161 $293 $161
Total$9,675 $6,158 $4,110 $1,188

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue trajectory2025-2026Stabilize and grow as capacity ramps (directional, Q1) Expects revenue to stabilize and grow with additional MW from Dorothy 2 and Kati 1 (directional) Maintained (directional)
Dorothy 2 – full energizationQ4 2025Expected completion Q4 2025 Full energization anticipated Q4 2025 Maintained
Project Kati 1 – initial energizationEarly 2026Shovel-ready; capital formation underway (no date) Initial energization targeted early 2026 New/Specified timeline
Project Kati 1 – capacity2025-202635 MW phase funded Expanded to 83 MW with Galaxy (48 MW add); construction launch by end of August; ops expected Q1 2026 Raised scope/capacity

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4’24, Q1’25)Current Period (Q2’25)Trend
Bitcoin halving / hashpriceHashprice volatility; halving headwinds cited; revenue decline drivers Hashprice down ~5% q/q to $51; continued headwinds but managed expenses Headwind persists; operational mitigation
AI/HPC strategyTerminated CloudCo/HPE; pivot to AI data centers; Kati shovel-ready Galaxy 48 MW at Kati 1 (83 MW total); Helios transitioning to AI/HPC; Kati timeline set Accelerating execution
Capacity build-outDorothy 2 under construction; 64% hosting capacity increase expected; pipeline 698 MW Dorothy 2 onboarding; full energization Q4; 295 MW new projects; pipeline 2.8 GW Scaling up materially
Capital structure / fundingSimplified structure; SEPA; paid down project debt $20M Spring Lane funding; first ATM issuance; successful July equity offering prep Enhanced funding access
Operating profitabilityQ1 Adj. EBITDA loss $(1.65)M; improvement vs Q4 2024 Fourth consecutive q/q improvement; Adj. EBITDA improved by $0.4M q/q Gradual improvement

Management Commentary

  • CEO: “Second quarter results demonstrate continued Adjusted EBITDA improvement and margin strength in our operating sites… We expanded our partnership with Spring Lane Capital to help launch our next flagship data center, Project Kati. We are now focused on scale.”
  • CFO: “We are pleased to report the fourth quarter in a row of Adjusted EBITDA growth… improving by 25.5% ($0.4M) in Q2 over the prior quarter amidst market softness in Hashprice, while maintaining a steady 19% gross margin.”
  • CEO on Galaxy partnership: “This partnership with Galaxy represents our largest MW deployment to date and underscores how our modular approach allows us to deliver efficient, renewable-powered infrastructure at scale.”

Q&A Highlights

  • The company furnished an earnings press release and investor presentation with detailed segment/site data; no separate Q&A content was available in our document set. Management emphasized: q/q Adjusted EBITDA improvement despite 5% hashprice decline, stable 19% gross margin, and project-timeline clarity for Dorothy 2 and Kati 1 .

Estimates Context

  • S&P Global consensus for Q2 2025: Revenue $8.10M*, Primary EPS $(0.76)* (one estimate for each). Actuals: Revenue $6.16M (miss), EPS $(0.49) vs GAAP $(0.69) reported; S&P “actual” EPS differs due to methodology/adjustments (e.g., share count, continuing operations) .
  • With a single covering estimate, we expect models to adjust for: lower-than-expected revenue mix (hosting vs proprietary mining), continued hashprice sensitivity, and project ramp timing (Dorothy 2, Kati 1) .
MetricQ2 2025 Consensus*Q2 2025 Actual (Company GAAP)
Revenue ($USD Millions)$8.10*$6.16
Primary EPS ($)$(0.76)*$(0.69) (GAAP)

*Values retrieved from S&P Global.

Key Takeaways for Investors

  • Revenue stabilized q/q (+3.7%) while y/y comps remain pressured by halving and hashprice; gross margin held at 19.3% due to cost discipline .
  • EPS beat S&P consensus on an adjusted/primary basis even as revenue missed; reflects expense control and mix shift to hosting with margin stability .
  • Execution catalysts: Dorothy 2 full energization targeted in Q4 2025; Kati 1 now fully scoped at 83 MW via Galaxy, with initial energization early 2026—key drivers of future revenue scale .
  • Funding de-risking: $20M Spring Lane capital for Kati 1 and ATM/SEPA activity bolster liquidity; unrestricted cash ended Q2 at $9.9M (+$2.0M vs 12/31/24) .
  • Segment mix shifting toward hosting dampens top-line vs prior crypto upcycles but can improve resilience and capital efficiency through customer deployments .
  • Watch management transition: interim CFO appointment preserves continuity; monitor cash flow, capex pacing, and financing terms as build-out accelerates .
  • Near-term trading setup likely tied to project milestones (Dorothy 2 ramp, Kati construction start), hashprice trends, and any new hosting wins or AI/HPC contracts .

Notes and Reconciliations:

  • Non-GAAP definitions (EBITDA, Adjusted EBITDA) per company disclosures; Q2 2025 EBITDA $(3.20)M; Adjusted EBITDA $(1.23)M with reconciliations provided .
  • Company cites drivers for y/y revenue decline and Adjusted EBITDA deltas: halving/hashprice, mix shift to profit-sharing (COGS offset), machine availability/efficiency, demand response dynamics in ERCOT .