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Soluna Holdings, Inc (SLNH)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 revenue rose 37% QoQ to $8.42M on Dorothy 2 customer ramps; gross margin expanded to 28% (from 19% in Q2), aided by $0.4M one-time electricity credits .
  • Against S&P Global consensus, revenue modestly missed ($8.42M vs $9.00M) while “Primary EPS” beat (actual -$0.423 vs -$0.61), though GAAP EPS was -$1.14 driven by large non-cash mark-to-market and financing items* .
  • Balance sheet liquidity inflected: cash and restricted cash ended at $60.46M; unrestricted cash was $51.37M, supported by ~$64M gross capital raised and a new up-to-$100M Generate Capital facility .
  • Strategic catalysts advanced: Dorothy 2 reached full capacity (Nov 13), and Project Kati broke ground (Sept 11) with 83 MW (Kati 1) targeted for early 2026 and 48 MW committed by Galaxy .

What Went Well and What Went Wrong

  • What Went Well

    • Gross margin improved to 28% as Dorothy 2 ramped and sites 1A/Sophie delivered strong unit economics (43.6% and 68.4% site-level margins); management highlighted “exceptional execution” and “a new Soluna” .
    • Liquidity strengthened materially: cash and restricted cash grew to $60.46M with ~$64M gross capital formation; regained Nasdaq compliance .
    • Pipeline and scale: surpassed 4 EH/s under management during Q3 and later >5 EH/s as Dorothy 2 fully energized; expanded partnership with Galaxy and closed an up-to-$100M scalable credit facility .

  • What Went Wrong

    • GAAP net loss widened to $(25.79)M on a $(22.05)M fair value loss (warrants) and $(4.75)M other financing expense, partially offset by a $10.11M gain on debt extinguishment/revaluation .
    • Adjusted EBITDA declined to $(6.37)M due to higher compensation and professional fees; management’s “ex special charges” construct was near breakeven, but core adjusted EBITDA remained negative .
    • Revenue was slightly below S&P consensus ($8.42M vs $9.00M), reflecting partial-quarter ramp at Dorothy 2 and steady-to-flat performance at other sites; demand response was modest at $0.39M* .

Financial Results

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Revenue ($USD)$7.525M $5.936M $6.158M $8.415M
GAAP EPS (Basic & Diluted)$(1.56) $(0.88) $(0.69) $(1.14)
Gross Profit ($USD)$(1.364)M $1.173M $1.188M $2.329M
Adjusted EBITDA ($USD)$(3.482)M $(1.648)M $(1.227)M $(6.374)M
Cash & Restricted Cash (End of Period)—$14.448M $15.153M $60.461M

Segment revenue mix and project-level detail:

  • Q3 2025 revenue mix: Cryptocurrency mining $2.769M; Data hosting $5.257M; Demand response $0.389M; HPC $0 .
  • Q3 2025 gross profit by site: Dorothy 1A $0.720M; Dorothy 2 $0.339M; Sophie $0.961M; Other $0.301M; 1B $0.008M; total $2.329M .
Segment Revenue ($USD)Q3 2024Q2 2025Q3 2025
Cryptocurrency mining$2.811M $2.861M $2.769M
Data hosting$4.271M $3.136M $5.257M
Demand response$0.443M $0.161M $0.389M
High-performance computing$0.000M $0.000M $0.000M
Total$7.525M $6.158M $8.415M

Vs. S&P Global consensus (Q3 2025):

  • Revenue: $8.42M vs $9.00M estimate (miss $0.58M, -6.5%)*
  • “Primary EPS”: -$0.423 vs -$0.61 estimate (beat $0.187)*
    Values retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dorothy 2 energization2H 2025Full energization anticipated in Q4 2025 Completed and fully energized Nov 13, 2025 Raised/achieved milestone
Project Kati 1 (83 MW, BTC hosting) online targetEarly 2026Under development with capital formation in Q2 Broke ground Sept 18; 48 MW Galaxy committed; early 2026 online target reiterated Maintained timing; execution de-risked
Capital facilityN/A—New scalable credit facility up to $100M from Generate Capital; $12.6M initial draw in Sept New facility
Quantitative revenue/EBITDA guidanceQ4/FYNone providedNone providedMaintained (no quantitative guidance)

Earnings Call Themes & Trends

Note: No Q3 2025 earnings call transcript was found.

TopicPrevious Mentions (Q1 & Q2 2025)Current Period (Q3 2025)Trend
AI/HPC strategyTerminated HPE CloudCo; focus shifted back to BTC hosting while building AI/HPC pipeline Kati 2 planned as AI/HPC phase; project pipeline >1 GW; post-quarter Dorothy 2 at scale Pivoting from legacy CloudCo to greenfield AI capacity
Bitcoin market/HashpriceHalving/Hashprice pressured YoY; Adjusted EBITDA resilience emphasized Hosting growth offsetting; Dorothy 2 drove +$2M QoQ revenue; profitability still sensitive Mix shifting toward hosting margins
Capital & liquidityATM/SEPA and debt raises; $9.9M unrestricted cash at Q2 end ~$64M gross capital raised; Generate $100M facility; cash & restricted $60.46M Balance sheet strengthening
Regulatory/listing——Regained Nasdaq compliance
Legal/legacy liabilities——NYDIG settlement clearing path for growth
Execution at sitesDorothy 2 energized phases in Q2; commissioning ongoing Dorothy 2 revenue step-up; site-level margins strong at 1A/Sophie; 1B upgrades Execution momentum improving

Management Commentary

  • “This is a new Soluna… We’ve proven that our business model works and scales, strengthened our position as a leading Bitcoin hosting provider, and attracted new, world-class capital partners.” — John Belizaire, CEO .
  • “We’ve also strengthened our capital structure to be more flexible and growth-oriented… [and] expand into the fast-growing AI market.” — John Belizaire, CEO .
  • On Dorothy 2: “Our team delivered a complex, large-scale project on schedule, proving that Renewable Computing can be deployed quickly, reliably, and sustainably.” — John Belizaire, CEO .

Q&A Highlights

  • No Q3 2025 earnings call transcript was available; no formal Q&A to extract. Company reiterated growth drivers and milestones through the press release and investor materials .

Estimates Context

  • Q3 revenue of $8.42M vs S&P Global consensus $9.00M (miss $0.58M, -6.5%); “Primary EPS” actual -$0.423 vs -$0.61 consensus (beat $0.187)*.
  • Expect possible estimate revisions: mix shift toward hosting (higher-margin sites) and full Dorothy 2 contribution should support revenue trajectory, while non-cash P&L volatility (warrants fair value, debt revaluation) may complicate GAAP EPS modeling .
    Values retrieved from S&P Global.

Key Takeaways for Investors

  • Execution inflection: Dorothy 2 ramp drove meaningful QoQ revenue growth and margin expansion; post-quarter completion should further support Q4 run-rate .
  • Balance sheet de-risked: ~$60.46M cash & restricted cash and up-to-$100M facility provide runway to scale Kati and pipeline projects without undue equity reliance .
  • Operating leverage ahead: Site-level margins at 1A/Sophie are robust; as Kati 1 (83 MW) comes online in early 2026 and Dorothy 2 seasons, consolidated margins should improve, barring hashprice shocks .
  • GAAP optics vs core: Large non-cash fair value losses and financing items drove GAAP EPS to -$1.14; focus on underlying gross profit trajectory and project-level economics to gauge core progress .
  • Catalysts: Continued customer deployments at Dorothy 2, Kati construction milestones, additional hosting contracts, and further institutional capital formation (Generate facility drawdowns) .
  • Risks: Bitcoin hashprice sensitivity, project ramp timing, professional fee intensity, and potential volatility from warrant and financing fair value marks .
  • Near-term trading setup: Headlines around Dorothy 2 completion, liquidity improvements, and Galaxy/Kati updates are constructive; watch for Q4 revenue step-up and operating expense discipline to confirm trajectory .

Footnotes:

  • S&P Global consensus and “Primary EPS” figures (estimates and actuals) are from S&P Global and may differ from GAAP EPS reported in company filings. Values retrieved from S&P Global.

Sources:

  • Q3 2025 8-K press release and financials, Nov 17, 2025
  • Q2 2025 8-K press release and financials, Aug 15, 2025
  • Q1 2025 8-K press release and financials, May 16, 2025
  • Project Dorothy 2 completion press release, Nov 13, 2025
  • Project Kati groundbreaking press release, Sept 11, 2025
  • Monthly business update, Sept 9, 2025