Soluna (NASDAQ:SLNH) Releases Earnings Results, Misses Estimates By $0.07 EPS

Key Points

• Soluna missed quarterly earnings expectations: It reported an adjusted loss of $0.18 per share versus the $0.11 consensus estimate, while revenue of $15.06 million also fell short of the $15.70 million forecast.
• Growth and AI infrastructure expansion continued: Revenue rose 145% year over year to $15.1 million, and the company’s power pipeline grew to approximately 6.3 gigawatts, including more than 1.6 gigawatts dedicated to AI development.
• Profitability weakened despite improved liquidity: Gross profit declined 35% and net loss widened to $22.6 million, pressured by startup, repair and interest costs and weaker mining revenue. Soluna ended the quarter with $113 million available for operations and development against $33.1 million of debt.

Soluna (NASDAQ:SLNH - Get Free Report) posted its quarterly earnings results on Thursday. The company reported ($0.18) earnings per share for the quarter, missing analysts' consensus estimates of ($0.11) by ($0.07), FiscalAI reports. Soluna had a negative return on equity of 64.80% and a negative net margin of 190.87%.The company had revenue of $15.06 million during the quarter, compared to analyst estimates of $15.70 million.

Here are the key takeaways from Soluna's conference call:

• Revenue increased 145% year over year to $15.1 million, marking the fifth consecutive quarter of sequential growth. Excluding the new gross presentation of pass-through electricity costs, revenue still grew 73% year over year and 13% sequentially.
• Soluna strengthened its AI infrastructure portfolio by acquiring the 150-megawatt Briscoe Wind Farm, consolidating full ownership of Project Dorothy 1, and advancing the 350-plus-megawatt Kati 2 and 300-plus-megawatt Dorothy 3 campuses. Its total power pipeline expanded to approximately 6.3 gigawatts, including more than 1.6 gigawatts in AI development.
• Liquidity improved materially, with $113 million in cash available for operations and development and total debt of $33.1 million at quarter-end. Management plans to finance large AI campuses primarily through project-level debt backed by contracted tenant cash flows, potentially limiting corporate balance-sheet requirements.
• Gross profit fell 35% year over year to $766,000, while net loss widened to $22.6 million from $7.8 million. Results were pressured by startup costs at Kati 1, approximately $1.5 million of Briscoe repairs and maintenance, higher interest expense, and a 40% decline in proprietary mining revenue as hash prices weakened.
• Management said Soluna’s energized, behind-the-meter Texas sites should have limited direct exposure to the state’s ERCOT data-center queue audit, but acknowledged that the review process is still developing. Kati 2 has a tenant letter of intent and is targeting initial readiness roughly 15 months after a signed contract, while Dorothy 3 formal marketing is expected to begin in the fall.

Soluna Stock Performance

SLNH stock traded down $0.05 during trading on Thursday, reaching $1.30. 13,730,211 shares of the stock were exchanged, compared to its average volume of 11,009,872. The stock has a 50 day simple moving average of $1.33 and a 200-day simple moving average of $1.21. The company has a current ratio of 1.75, a quick ratio of 1.75 and a debt-to-equity ratio of 0.16. The company has a market capitalization of $205.07 million, a P/E ratio of -0.80 and a beta of 5.13. Soluna has a twelve month low of $0.41 and a twelve month high of $5.14.

Analyst Ratings Changes

A number of research firms recently commented on SLNH. Wall Street Zen upgraded Soluna from a "sell" rating to a "hold" rating in a report on Saturday, April 25th. HC Wainwright assumed coverage on shares of Soluna in a report on Monday, July 20th. They set a "buy" rating and a $4.00 price target on the stock. Zacks Research raised shares of Soluna to a "hold" rating in a research report on Tuesday, July 21st. Finally, Weiss Ratings upgraded Soluna from a "sell (e+)" rating to a "sell (d-)" rating in a report on Friday, June 12th. One equities research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Soluna currently has a consensus rating of "Hold" and an average price target of $4.00.

Insider Activity

In other Soluna news, CFO Michael Picchi bought 100,000 shares of the firm's stock in a transaction dated Thursday, May 21st. The shares were acquired at an average cost of $1.63 per share, for a total transaction of $163,000.00. Following the transaction, the chief financial officer owned 1,381,250 shares in the company, valued at approximately $2,251,437.50. The trade was a 7.80% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. Corporate insiders own 10.10% of the company's stock.

Hedge Funds Weigh In On Soluna

Several hedge funds have recently added to or reduced their stakes in SLNH. Focus Partners Wealth acquired a new stake in shares of Soluna during the third quarter worth $25,000. Scientech Research LLC bought a new stake in shares of Soluna in the 3rd quarter valued at about $31,000. Squarepoint Ops LLC acquired a new stake in shares of Soluna in the 4th quarter valued at approximately $30,000. Vident Advisory LLC acquired a new position in Soluna during the fourth quarter valued at approximately $67,000. Finally, OMERS ADMINISTRATION Corp acquired a new stake in Soluna in the fourth quarter worth $81,000. Institutional investors own 23.19% of the company's stock.

Soluna Company Profile

Soluna Computing, Inc NASDAQ: SLNH is a renewable energy and computing company that develops, constructs and operates utility‐scale wind and solar projects designed to power high-performance computing workloads. By integrating power generation with data processing infrastructure, Soluna targets applications such as cryptocurrency mining, blockchain validation, artificial intelligence training and other cloud‐based or on-premises computing tasks that can flex to available renewable output.

The company manages the full project lifecycle—site selection, permitting, engineering, procurement, construction and operations—with a focus on regions that offer abundant wind or solar resources yet face limitations in grid infrastructure.

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