Soluna (SLNH -2.61%), a developer and operator of renewable-powered data centers focused on Bitcoin mining and sustainable computing, published its second-quarter results on August 15, 2025. The key news: revenue was $6.2 million, well below the consensus estimate of $8.10 million and down sharply from $9.68 million in the prior year. Even so, earnings per share improved to $(0.69), narrowing from $(2.97) in the prior year. The overall assessment highlights significant industry pressure on revenue, balanced by disciplined cost controls and ongoing project development. Unrestricted cash increased by $2.0 million to $9.9 million as of June 30, 2025, compared to December 31, 2024, but cash remains tight and the business continues to depend heavily on external funding.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $(0.69) | $(0.76) | $(2.97) | 76.8% |
| Revenue (GAAP) | $6.2 million | $8.10 million | $9.68 million | (36.0%) |
| Adjusted EBITDA | $(1.23 million) | $1.80 million | (168.3%) | |
| Gross Margin | 19% | 42.5% | (23.5 pp) | |
| Unrestricted Cash | $9.88 million | $7.84 million (as of Dec 31, 2024) | 26.1% |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
About Soluna’s business and strategic priorities
Soluna (SLNH -2.61%) specializes in constructing and operating data centers that are co-located with renewable energy sources like wind and solar plants. Its main product lines are Bitcoin mining operations, hosting third-party miners in its data centers, and providing demand response services for the power grid. By using energy that would otherwise go unused -- known as stranded energy -- it can deliver lower-cost and more sustainable computing solutions.
Recently, the company has focused on expanding its pipeline of new renewable-powered sites and refining its capital structure. Its success depends on scaling this pipeline, managing project costs, and ensuring a steady flow of capital for further growth. Strategic partnerships and disciplined cost controls are also key factors as it grows both Bitcoin mining and third-party hosting revenue streams.
Quarter in review: Revenue pressure and strategic expansion
Both top and bottom line results missed analyst expectations. Revenue was $6.2 million, missing estimates by $1.9 million and declining $3.5 million from the prior year. This shortfall was mainly attributed to the effects of the Bitcoin halving -- a scheduled event that cuts miners’ rewards in half -- which took place in April 2024, causing mining economics to weaken. Revenue drops hit all segments: Cryptocurrency Mining, Data Hosting, and Demand Response Services each posted double-digit declines.
Gross margin was 19%, down from 42.5% a year earlier, reflecting strict cost controls. Nevertheless, adjusted EBITDA, a non-GAAP measure of profitability before interest, taxes, depreciation, and amortization, moved sharply negative to $(1.23 million), worse than last year’s $1.80 million.
The company also reported a net loss of $(7.78 million). Loss per share was $0.69, compared to $2.97 in the prior year. Cash on hand improved to $9.88 million, boosted by capital raises and tight spending, but remains small relative to future project needs.
Operational highlights included several large project launches. During the quarter, 295 megawatts of new projects were launched, including its first solar-powered data center, Project Annie, and new wind-powered sites. The total project pipeline reached 2.8 gigawatts, up from 2.6 gigawatts at the end of December 2024. The ongoing expansion of Project Dorothy 2 in Texas remains on track for completion in the fourth quarter of 2025, set to add significant hosting capacity. The company also secured $20 million in new project financing from Spring Lane Capital for Project Kati and closed a $5 million debt facility with Galaxy Digital secured by the assets of Project Sophie.
Soluna’s business segments all experienced declines in revenue compared to the prior year. Mining segment revenue fell to $2.86 million, with the segment swinging from operating profit to slight operating loss amid falling “hashprice,” a key measure of mining income per computing unit. Data center hosting produced $3.14 million in revenue. Demand Response Services revenue was $0.16 million as the company cycled out of the winter pricing season and faced changes from the Electric Reliability Council of Texas (ERCOT) market. Gross profit for operating sites in Soluna Digital remained steady compared to the prior quarter.
One-time events this quarter included the strategic termination of a contract with Hewlett Packard Enterprise (HPE) in the Project Ada unit, allowing Soluna to refocus on core crypto-mining and future artificial intelligence data center development. While one-time changes in the commercial model and temporary operational downtimes impacted revenue, management expects these to be resolved in future periods as new capacity comes online.
SLNH does not currently pay a dividend.
Looking ahead: Guidance and investor considerations
Management did not provide quantitative revenue or earnings guidance for upcoming quarters or for fiscal 2025. Leadership indicated in the release, “We expect revenue to stabilize and grow as we continue to commission additional MW of Bitcoin Hosting capacity over the next two years, related to Dorothy 2 and Kati 1,” (Management outlook as of Q2 2025; revenue refers to GAAP revenue as reported in company filings). Management expects revenue to stabilize and grow as additional megawatts of Bitcoin Hosting capacity are commissioned over the next two years. However, the company reiterated its need for further capital to support these expansions and signaled plans for another equity offering that could increase dilution risk.
For investors, key factors to watch include the ramp-up of Dorothy 2 and Kati 1, trends in operating margins, and the ability to keep cost growth in check. The company's future depends on converting its large pipeline of potential projects into operational and profitable assets, while navigating market cycles in Bitcoin mining and hosting. External capital remains critical, and any delays or execution issues could impact both growth and financial stability.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
