Digihost Technology (HSSHF) Financials

Digi Power X’s supplied financial results show a company with substantially stronger liquidity but continued operating losses and heavy reliance on equity financing. The comparison covers Q1 and Q2 2025 versus Q1 and Q2 2026; a complete four-year trend is not available in the provided data.

• Cash position improved materially. Cash and equivalents increased to $128.1 million at June 30, 2026, from $57.8 million at March 31, 2026. Total current assets also nearly doubled sequentially to $144.6 million.
• Balance-sheet leverage remains low. Total liabilities were only $14.5 million at the end of Q2 2026, with no reported noncurrent liabilities. Total equity stood at $265.0 million, providing a substantial capitalization cushion relative to debt obligations.
• Operating cash burn improved from the prior-year quarter. Net cash used in operating activities declined to $4.2 million in Q2 2026 from $8.2 million in Q2 2025. Cash used in operations also improved from $6.4 million in Q1 2026.
• Capital investment expanded the asset base. Property, plant and equipment increased to $73.2 million from $26.2 million at the end of Q1. The $81.1 million Q2 investment in PP&E could support future capacity and revenue growth if the new assets generate adequate returns.
• Revenue remained relatively stable sequentially. Q2 2026 revenue of $6.6 million was only modestly below Q1’s $6.8 million, suggesting that the company’s near-term revenue base did not deteriorate sharply quarter to quarter.

• Cash growth was primarily financing-driven. Digi Power X raised $157.6 million through common-stock issuance in Q2 2026. This more than offset operating and investing cash outflows, but the cash increase should not be interpreted as internally generated growth.
• Expansion spending was unusually large relative to revenue. Q2 investing cash outflows totaled $85.1 million, including $81.1 million of PP&E purchases and $3.6 million of acquisitions. Investors will need to monitor whether these investments translate into higher revenue and improved margins.
• Working-capital trends were mixed. Inventory increased to $14.3 million from $13.6 million sequentially, while accounts receivable rose to $284,000 from $44,000. These balances are manageable relative to cash, but growing inventory could tie up capital if demand does not improve.

• Revenue declined year over year. Q2 2026 revenue fell to $6.6 million from $8.1 million in Q2 2025, an approximately 18% decrease. Revenue also remained below Q1 2025’s $9.3 million level.
• Gross losses worsened significantly. The company reported a gross loss of $5.5 million in Q2 2026, compared with a gross loss of $92,000 in Q2 2025 and $802,000 in Q1 2026. Operating costs exceeded revenue by a wide margin, indicating severe pressure on unit economics.
• Operating expenses surged. Selling, general and administrative expense rose to $9.5 million in Q2 2026 from $3.9 million a year earlier, while depreciation increased to $4.1 million from $1.6 million. Total operating expenses reached $13.6 million.
• Net losses are widening sequentially and year over year. Q2 2026 net loss was $14.4 million, compared with losses of $4.7 million in Q1 2026 and $9.7 million in Q2 2025. The company’s basic and diluted loss was $0.17 per share in Q2, versus $0.07 in Q1.
• Shareholder dilution is substantial. Weighted average basic shares outstanding increased to 85.5 million in Q2 2026 from 69.6 million in Q1 and 36.6 million in Q2 2025. The large equity raise strengthened liquidity but reduced existing shareholders’ ownership percentage.
• Cash flow remains negative before financing. Operating cash flow was negative and investing outflows were substantial. Without the $157.6 million equity issuance, cash would have declined sharply during Q2, highlighting the company’s continued dependence on external capital.
• Accumulated losses continue to increase. Retained earnings declined to negative $107.9 million from negative $93.5 million at the end of Q1 2026, reflecting the company’s ongoing inability to generate net profits.

Overall, Digi Power X ended Q2 2026 with a stronger liquidity position and minimal reported debt, but the improvement was largely funded by new equity rather than profitable operations. The key issues for investors are whether the company can reverse its worsening gross margins, control SG&A and depreciation costs, and generate sufficient returns from its large PP&E investments before further dilution becomes necessary.