Sphere 3d (ANY -3.64%), a Bitcoin mining specialist, reported its earnings for the second quarter of fiscal 2025 on August 5, 2025. The headline results reflected a sharp year-over-year drop in revenue and Bitcoin production, alongside a positive earnings per share (EPS) surprise (GAAP). Revenue (GAAP) missed analyst expectations at $3.0 million versus an anticipated $3.3 million, down from $4.7 million in Q2 2024. However, the company posted net income of $1.7 million, or $0.06 per share (GAAP), significantly higher than the $(0.11) per share estimate. This outcome stemmed from operating expense reductions and investment gains. Overall, the period marked solid progress on cost control but highlighted ongoing pressures from industry trends and lower Bitcoin output.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS | $0.06 | $(0.11) | $0.11 | -45.5% |
| Revenue | $3.0 million | $3.3 million | $4.7 million | (36.2%) |
| Operating Costs and Expenses | $5.6 million | $10.4 million | (46.2%) | |
| Net Income | $1.7 million | $2.1 million | (19.0%) | |
| Bitcoin Production | 30.9 | 70.7 | (56.3%) |
Source: Analyst estimates for the quarter provided by FactSet.
Business Overview and Recent Focus
Sphere 3d is a digital asset miner, focusing its resources on mining Bitcoin using specialized mining computers called application-specific integrated circuits (ASICs). The company operates mining sites in North America aiming to maximize operational efficiency by upgrading equipment.
In the past year, the company has prioritized efficiency and scalability. Its recent initiatives center on reducing operating costs, expanding mining capacity, and deploying new-generation machines. Key success factors include increasing its hashrate -- a measure of mining processing power -- efficiently managing capital, and adapting quickly to market swings and regulatory developments.
Quarter Highlights: Financials and Operations
The second quarter underscored the volatility and challenges of the Bitcoin mining sector. Revenue (GAAP) dropped to $3.0 million—a 36.2% fall compared to $4.7 million in Q2 FY2024—missing analyst projections. Bitcoin production also fell 56.3% compared to 70.7 coins in Q2 FY2024, with only 30.9 coins mined, as Sphere 3D transitioned to new equipment and wound down less efficient hosting contracts.
This revenue contraction largely resulted from "weaker post-halving economics," referring to the recent event where the number of new Bitcoin awarded per block is halved, making mining more difficult and less rewarding. The period also saw downtime while older mining machines were decommissioned and replaced by newer ASICs, slowing production but supporting longer-term efficiency.
Amid these top-line declines, Sphere 3d slashed operating costs and expenses by 46% to $5.6 million. Cost of mining revenue (GAAP) dropped from $3.96 million in Q2 FY2024 to $2.3 million, while general and administrative expenses (GAAP) fell from $2.99 million in Q2 FY2024 to $2.1 million. Management noted this was the lowest operating expense figure since early 2022, stressing that its cost discipline was "unchanged- strengthen our foundation, manage costs, and build a business that performs across cycles."
The company delivered positive net income (GAAP), despite a year-over-year dip. Investment gains of $4.3 million provided a significant boost, though these were less than the $7.8 million gain booked in Q2 FY2024. Bitcoin held on the balance sheet increased to 20.5 coins, valued at $2.2 million. Property and equipment, net (GAAP), declined from $21.97 million at December 31, 2024, to $19.64 million at June 30, 2025, reflecting the company’s pivot to new hardware and scaled-back operations. There were no impairment charges this period, and losses on disposal of equipment (GAAP) shrank from $691,000 in Q2 2024 to $51,000.
Looking Ahead: Guidance and What to Watch
Management did not provide financial guidance for upcoming quarters or the rest of fiscal 2025. It instead reiterated its commitment to disciplined scaling, cost containment, and asset modernization to capture opportunities from potential Bitcoin price growth.
Investors should monitor production rates as the new mining equipment ramps up, capital management as cash balances tighten, and ongoing efforts to maintain regulatory compliance in a shifting landscape.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
