Marathon Digital (NASDAQ:MARA) Releases Quarterly Earnings Results, Misses Estimates By $2.81 EPS

Key Points

• Marathon Digital missed quarterly expectations, reporting earnings of -$3.31 per share versus an expected -$0.50 and revenue of $174.6 million versus the $181.9 million consensus.
• The company’s results were weighed down by a large net loss of $1.3 billion, including about $1 billion from an unrealized Bitcoin mark-to-market adjustment, though it also posted record energized hash rate.
• Management highlighted growth and balance-sheet moves, including the Long Ridge acquisition, progress on the Starwood joint venture, and debt reduction actions that Marathon says should improve flexibility and support future AI/HPC expansion.

Marathon Digital (NASDAQ:MARA - Get Free Report) released its earnings results on Monday. The business services provider reported ($3.31) earnings per share for the quarter, missing the consensus estimate of ($0.50) by ($2.81), FiscalAI reports. The company had revenue of $174.61 million for the quarter, compared to the consensus estimate of $181.90 million. Marathon Digital had a negative net margin of 144.58% and a negative return on equity of 19.01%.

Here are the key takeaways from Marathon Digital's conference call:

• Long Ridge acquisition adds 1,600 contiguous acres, an operational ~505 MW combined‑cycle gas turbine (generated ~$144M annualized adjusted EBITDA in H2 2025) and a path to >1 GW of capacity, boosting MARA’s energized capacity ~65% to ~2.2 GW and enabling an initial 200 MW AI build that could begin construction in H1 2027 with first capacity mid‑2028.
• The Starwood joint venture moved from announcement to execution, providing a capital‑efficient way to convert MARA’s powered land into institutional‑grade AI/HPC campuses; MARA says an illustrative 200 MW project could generate ~$50M–$100M of net annualized stabilized cash flow with little incremental equity required.
• MARA closed on a majority interest in Exaion to pursue sovereign, enterprise and private‑cloud AI workloads in regulated markets (Europe, Canada, etc.), creating a complementary pathway to hyperscaler colocation but still at an early stage of commercialization.
• Q1 results showed revenue of $174.6M and a net loss of $1.3B (loss per share $3.31), with roughly $1B of that driven by an unrealized Bitcoin mark‑to‑market adjustment; adjusted EBITDA was negative ~$1B, reflecting meaningful volatility tied to Bitcoin prices despite record energized hash rate.
• Management materially delevered and reduced dilution risk—retiring ~30% of outstanding convertible debt at a discount, selling ~$1.5B of Bitcoin to repurchase >$1B face value of notes and cut the credit line by $200M, and refinancing $150M at 7%—actions the company says lower leverage and increase financial flexibility.

Marathon Digital Trading Up 3.5%

Marathon Digital stock traded up $0.45 during mid-day trading on Monday, hitting $13.39. The company's stock had a trading volume of 49,366,365 shares, compared to its average volume of 46,986,172. The company has a 50 day moving average of $9.69 and a 200-day moving average of $10.93. The stock has a market cap of $5.10 billion, a PE ratio of -3.38 and a beta of 5.41. The company has a debt-to-equity ratio of 0.92, a quick ratio of 1.27 and a current ratio of 1.27. Marathon Digital has a one year low of $6.66 and a one year high of $23.45.

Analysts Set New Price Targets

MARA has been the topic of several analyst reports. HC Wainwright reissued a "neutral" rating on shares of Marathon Digital in a research report on Friday, February 27th. Cantor Fitzgerald cut their target price on Marathon Digital from $11.00 to $10.00 and set an "overweight" rating on the stock in a research report on Thursday, April 9th. Piper Sandler cut their target price on Marathon Digital from $26.00 to $16.00 and set an "overweight" rating on the stock in a research report on Wednesday, January 14th. Rosenblatt Securities boosted their target price on Marathon Digital from $11.00 to $15.00 and gave the company a "buy" rating in a research report on Friday, May 1st. Finally, Morgan Stanley initiated coverage on Marathon Digital in a research report on Monday, February 9th. They set an "underweight" rating and a $8.00 target price on the stock. Seven research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $18.22.

Insider Buying and Selling at Marathon Digital

In other Marathon Digital news, CEO Frederick G. Thiel sold 27,505 shares of the company's stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $9.18, for a total value of $252,495.90. Following the transaction, the chief executive officer owned 4,788,954 shares of the company's stock, valued at $43,962,597.72. This represents a 0.57% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CFO Salman Hassan Khan sold 16,000 shares of the company's stock in a transaction on Friday, April 17th. The shares were sold at an average price of $11.68, for a total value of $186,880.00. Following the completion of the transaction, the chief financial officer directly owned 441,066 shares in the company, valued at $5,151,650.88. This trade represents a 3.50% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 172,605 shares of company stock valued at $1,745,843 in the last quarter. 0.80% of the stock is owned by insiders.

Hedge Funds Weigh In On Marathon Digital

Several hedge funds have recently bought and sold shares of MARA. Integrated Wealth Concepts LLC grew its position in Marathon Digital by 9.8% in the 1st quarter. Integrated Wealth Concepts LLC now owns 11,073 shares of the business services provider's stock valued at $127,000 after acquiring an additional 991 shares during the last quarter. NewEdge Advisors LLC grew its position in shares of Marathon Digital by 65.3% during the 1st quarter. NewEdge Advisors LLC now owns 7,672 shares of the business services provider's stock worth $88,000 after buying an additional 3,032 shares in the last quarter. United Services Automobile Association grew its position in shares of Marathon Digital by 8.2% during the 1st quarter. United Services Automobile Association now owns 20,634 shares of the business services provider's stock worth $257,000 after buying an additional 1,569 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in shares of Marathon Digital by 11.0% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 643,311 shares of the business services provider's stock worth $7,398,000 after buying an additional 63,903 shares in the last quarter. Finally, Envestnet Asset Management Inc. bought a new position in shares of Marathon Digital during the 2nd quarter worth $183,000. Institutional investors own 44.53% of the company's stock.

Marathon Digital Company Profile

Marathon Digital Holdings, Inc is a digital asset technology company specializing in the mining and acquisition of bitcoin. Headquartered in Las Vegas, Nevada, the firm employs high-performance application-specific integrated circuit (ASIC) miners and proprietary software to secure the Bitcoin network and expand its crypto-mining footprint. Marathon Digital focuses on operational efficiency and scalability, while maintaining rigorous standards for regulatory compliance and corporate governance.

The company operates multiple large-scale mining facilities throughout North America, including sites in Texas, Montana and New York.

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