Soluna Reports Q2'25 Results

Business Wire

21 hours ago

BUSINESS WIRE)--Soluna Holdings, Inc. ('Soluna' or the 'Company') (NASDAQ: SLNH), a developer of green data centers for intensive computing applications, including Bitcoin mining and AI, announced its financial results for the second quarter ended June 30, 2025.
'Second quarter results demonstrate continued Adjusted EBITDA improvement and margin strength in our operating sites. In Q2, we also welcomed our first customers into Project Dorothy 2, the expansion of our first major site in Texas. We rebuilt our capital raising toolkit, secured our first at-the-market offering issuance, and prepared for a successful equity offering in July. We expanded our partnership with Spring Lane Capital to help launch our next flagship data center, Project Kati. We are now focused on scale,' said John Belizaire, CEO of Soluna Holdings.
'We are pleased to report the fourth quarter in a row of Adjusted EBITDA growth, improving by 25.5% ($0.4M) in Q2 over the prior quarter amidst market softness in Hashprice, while maintaining a steady 19% gross margin,' said John Tunison, CFO of Soluna.
Q2 2025 Operational and Corporate Highlights:
Project Kati Land Secured and Subsequently Closed $20M to Launch 35 MW Kati 1 – Soluna has secured land and $20M in funding from Spring Lane Capital to begin construction on Kati 1, the first 35 MW phase of our 166 MW wind-powered data center. Construction is expected to begin in Q3, with initial energization targeted for early 2026.
Expanded Hosting Deployments with Key Customers – Increased deployments of existing partners Blockware, Compass Mining, and other Top-tier Miners, as Dorothy 1 space became available and Dorothy 2 came online, deepening relationships with some of the industry's most established miners.
Project Dorothy 2 Construction On Track – All three building phases progressing on schedule, with full energization anticipated in Q4.
295 MW of New Projects Launched in Q2, Including Our First Solar-Powered Data Center – Including wind-powered Projects Hedy and Ellen, and solar-powered Project Annie. We believe these additions mark a major step in scaling Renewable Computing and diversifying our energy mix across Texas.
Increased Power Pipeline to 2.8 GW of Long-Term Capacity – With 2.8 GW of long-term clean energy capacity in our pipeline, Soluna anticipates that it will be positioned to meet the rising demand for sustainable computing infrastructure at scale.
Second Quarter Finance and Operations Highlights:
Net loss for the three months declined Q2 2024 to Q2 2025 by ($1.4 million) – driven by the above-mentioned Revenue, Gross Profit and SG&A drivers with a $2.9 million increase in Operating Loss, increased by $1.3 million combined higher Interest, Tax and Other Expenses which include consent fees to Preferred B holder and Kati wind farm loss generation fee offset by the prior year loss on convertible debt and warrant revaluation for $5.6 million.
Adjusted EBITDA improved $0.4 million from Q1 2025 to Q2 2025, primarily driven by a steady 19% gross margin, controlling expenses, and no significant interconnection outages. This resilient progress was despite headwinds from average Hashprice declining by 5% to $51, dampening profit sharing.
Adjusted EBITDA declined ($3.0 million) from Q2 2024 to Q2 2025, driven primarily by Bitcoin halving in April 2024 and Hashprice volatility ($0.6M) from fewer machines online and efficiency at Dorothy 1B. Professional fees were higher ($0.2M), including legal costs related to the Standby Equity Purchase Agreement and compliance costs.
In connection with our successful ATM raise and related fundraising, we incurred ($255) thousand of consent fees paid to the Series B Preferred stockholder. As part of securing land for Project Kati, we incurred ($291) thousand fees for lost power generation on the wind farm.
Gross profit for our operating sites in Soluna Digital remained steady compared to the prior quarter Q1 2025, Q2 2025 reported strong cost discipline and gross margin stability, despite a ($0.3M) decline in Demand Response Service gross profit from exiting the seasonally higher winter pricing period.
Revenue for Q2 2025 is $6.2 million, a Net Decline of $3.5 million for the three months Year-over-year. Four factors drove the decrease. Bitcoin halving and subsequent Hashprice volatility ($2.0 million), the change in commercial model mix to more Profit Sharing (fully offset by decline in cost of revenue by ($0.8 million) for no Gross Profit impact), lower Prop Mining volume related to site availability and miner efficiency ($0.6 million), and lower Demand Response Services driven by increased participation rate within ERCOT ($0.1 million).
Revenue Generation Poised for Growth – 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, as illustrated in the recently published 2025 Earnings Power Presentation.
Robust Cash Reserves – Quarter-end unrestricted cash was $9.9 million, a $2.0 million rise since December 31, 2024.
General and administrative expenses were flat year-over-year and improved from the prior quarter. Strong cost discipline has enabled these costs to be contained even as site development continues to grow substantially.
Q2 2025 Revenue & Cost of Revenue by Project Site
Q2 2024 Revenue & Cost of Revenue by Project Site
Soluna Digital
(Dollars in thousands)
Project
Dorothy
1B
Project
Dorothy
1A
Project
Dorothy 2
Project
Sophie
Other
Total
Cryptocurrency mining revenue $
4,484
$
-
$
-
$
-
$
-
$
4,484
Data hosting revenue
-
3,567
-
1,331
-
4,898
Demand response services
-
-
-
-
293
293
Total revenue
4,484
3,567
-
1,331
293
9,675
Cost of cryptocurrency mining, exclusive of depreciation
1,883
-
-
-
-
1,883
Cost of data hosting revenue, exclusive of depreciation
-
1,758
-
418
-
2,176
Cost of cryptocurrency mining revenue- depreciation
1,065
-
1,065
Cost of data hosting revenue- depreciation
290
-
151
-
441
Total cost of revenue $
2,948
$
2,048
$
-
$
569
$
-
$
5,565
Gross Profit $
1,536
$
1,519
$
-
$
762
$
293
$
4,110
Gross Profit Margin %
34.3
%
42.8
%
n/a
57.3
%
100.0
%
42.5
%
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The audited financial statements and Annual Report on Form 10-K for the year ended December 31, 2024, filed with the U.S. Securities and Exchange Commission ('SEC') on March 31, 2025, are available online.
Our current Investor Presentation can be found here.
Our 2025 Earnings Power Presentation can be found here.
Soluna's glossary of terms can be found here.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the 'safe harbor' provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as 'will,' 'expects,' 'anticipates,' 'future,' 'intends,' 'plans,' 'believes,' 'estimates,' 'confident' and similar statements. Other examples of forward-looking statements may include, but are not limited to, (i) statements of Company plans and objectives, including the completion of Projects Kati 1, Dorothy 2, Hedy, Ellen, and Annie, and the closing of the land purchase for Project Kati, (ii) statements of future economic performance, and (iii) statements of assumptions underlying other statements about the Company or its business. Soluna may also make written or oral forward-looking statements in its periodic reports to the SEC , in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Soluna's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, further information regarding which is included in the Company's filings with the SEC. All information provided in this press release is as of the date of the press release, and Soluna undertakes no duty to update such information, except as required under applicable law.
Non-GAAP Measures
In addition to figures prepared in accordance with generally accepted accounting principles ('GAAP'), Soluna from time to time may present alternative non-GAAP performance measures, e.g., EBITDA, adjusted EBITDA, adjusted net profit/loss, adjusted earnings per share, free cash flow, both on a company basis and on a project-level basis, among others. EBITDA is defined as earnings before interest, taxes, and depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted for stock-based compensation costs, provision for credit losses, loss on sale of fixed assets, impairment on fixed assets, fair value adjustment on Standby Equity Purchase Agreement draws, and loss (gain) on debt extinguishment and revaluation, net. Project-level measures may not take into account a full allocation of corporate expenses. These measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. Alternative performance measures are not subject to GAAP or any other generally accepted accounting principles. Other companies may define these terms in different ways. See our annual report on Form 10-K for the year ended December 31, 2024, for an explanation of how management uses these measures in evaluating its operations. Investors should review the non-GAAP reconciliations provided below and not rely on any single financial measure to evaluate the Company's business.
About Soluna Holdings, Inc. (Nasdaq: SLNH)
Soluna is on a mission to make renewable energy a global superpower using computing as a catalyst. The company designs, develops, and operates digital infrastructure that transforms surplus renewable energy into global computing resources. Soluna's pioneering data centers are strategically co-located with wind, solar, or hydroelectric power plants to support high-performance computing applications, including Bitcoin Mining, Generative AI, and other compute-intensive applications. Soluna's proprietary software MaestroOS(™) helps energize a greener grid while delivering cost-effective and sustainable computing solutions and superior returns. To learn more, visit solunacomputing.com and follow us on:
Soluna regularly posts important information on its website and encourages investors and potential investors to consult the Soluna investor relations and investor resources sections of its website regularly.
Soluna Holdings, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
As of June 30, 2025 (Unaudited) and December 31, 2024
(Dollars in thousands, except per share)
December 31, 2024
Assets
Current Assets:
Cash
$
9,878
$
7,843
Restricted cash
2,215
1,150
Accounts receivable, net (allowance for expected credit losses of $244 at June 30, 2025 and December 31, 2024)
2,649
2,693
Prepaid expenses and other current assets
2,236
1,781
Equipment held for sale
-
28
Total Current Assets
16,978
13,495
Restricted cash, noncurrent
3,060
1,460
Other assets
1,107
2,724
Deposits and credits on equipment
1,046
5,145
Property, plant and equipment, net
56,521
47,283
Intangible assets, net
12,957
17,620
Operating lease right-of-use assets
283
313
Total Assets
$
91,952
$
88,040
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable
$
3,942
$
2,840
Accrued liabilities
5,934
6,785
Accrued interest payable
3,286
2,275
Contract liability
19,348
20,015
Current portion of debt
13,255
14,444
Income tax payable
62
37
Customer deposits
1,962
1,416
Operating lease liability
63
61
Total Current Liabilities
47,852
47,873
Other liabilities
333
235
Long-term debt
10,021
7,061
Operating lease liability
220
252
Deferred tax liability, net
4,207
5,257
Total Liabilities
62,633
60,678
Commitments and Contingencies (Note 10)
Stockholders' Equity:
9.0% Series A Cumulative Perpetual Preferred Stock, par value $0.001 per share, $25.00 liquidation preference; authorized 6,040,000; 4,953,545 shares issued and outstanding as of June 30, 2025 and December 31, 2024
5
5
Series B Preferred Stock, par value $0.0001 per share, authorized 187,500; 62,500 shares issued and outstanding as of June 30, 2025 and December 31, 2024
—
—
Common stock, par value $0.001 per share, authorized 75,000,000; 19,095,863 shares issued and 19,055,122 shares outstanding as of June 30, 2025 and 10,647,761 shares issued and 10,607,020 shares outstanding as of December 31, 2024
19
11
Additional paid-in capital
323,557
315,607
Accumulated deficit
(329,242
)
(314,304
)
Common stock in treasury, at cost, 40,741 shares at June 30, 2025 and December 31, 2024
(13,798
)
(13,798
)
Total Soluna Holdings, Inc. Stockholders' (Deficit) Equity
(19,459
)
(12,479
)
Non-Controlling Interest
48,778
39,841
Total Stockholders' Equity
29,319
27,362
Total Liabilities and Stockholders' Equity
$
91,952
$
88,040
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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Soluna Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
For the Three and Six Months Ended June 30, 2025 and 2024
(Dollars in thousands, except per share)
Three Months Ended
Six Months Ended
June 30,
June 30,
2025
2024
2025
2024
Cryptocurrency mining revenue
$
2,861
$
4,484
$
5,860
$
10,880
Data hosting revenue
3,136
4,898
5,538
10,176
Demand response service revenue
161
293
668
1,168
High-performance computing service revenue
-
-
28
-
Total revenue
6,158
9,675
12,094
22,224
Operating costs:
Cost of cryptocurrency mining revenue, exclusive of depreciation
1,767
1,883
3,721
3,724
Cost of data hosting revenue, exclusive of depreciation
1,617
2,176
2,945
4,427
Cost of high-performance computing services
-
-
7
-
Cost of cryptocurrency mining revenue- depreciation
1,074
1,065
2,147
2,152
Cost of data hosting revenue- depreciation
512
441
913
877
Total costs of revenue
4,970
5,565
9,733
11,180
Operating expenses:
General and administrative expenses, exclusive of depreciation and amortization
5,397
5,382
11,344
9,378
Depreciation and amortization associated with general and administrative expenses
2,403
2,403
4,807
4,805
Total general and administrative expenses
7,800
7,785
16,151
14,183
Impairment on fixed assets
12
-
12
130
Operating loss
(6,624
)
(3,675
)
(13,802
)
(3,269
)
Interest expense
(1,196
)
(449
)
(2,034
)
(873
)
(Loss) gain on debt extinguishment and revaluation, net
-
(5,600
)
551
(8,698
)
Loss on sale of fixed assets
(22
)
(21
)
(22
)
(21
)
Other expense, net
(546
)
(49
)
(860
)
(25
)
Loss before income taxes
(8,388
)
(9,794
)
(16,167
)
(12,886
)
Income tax benefit, net
608
649
1,033
1,197
Net loss
(7,780
)
(9,145
)
(15,134
)
(11,689
)
(Less) Net (loss) income attributable to non-controlling interest
(398
)
1,728
(196
)
4,438
Net loss attributable to Soluna Holdings, Inc.
$
(7,382
)
$
(10,873
)
$
(14,938
)
$
(16,127
)
Basic and Diluted loss per common share:
Weighted average shares outstanding (Basic and Diluted)
14,991,125
4,563,696
13,473,983
3,683,558
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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Soluna Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
For the Six Months Ended June 30, 2025 and 2024
Six Months Ended June 30,
(Dollars in thousands)
2025
2024
Operating Activities
Net loss
$
(15,134
)
$
(11,689
)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense
3,121
3,091
Amortization expense
4,746
4,743
Stock-based compensation
3,789
2,029
Deferred income taxes
(1,051
)
(1,259
)
Impairment on fixed assets
12
130
Provision for credit losses
-
244
Amortization of operating lease asset
30
122
(Gain) loss on debt extinguishment and revaluation, net
(551
)
8,698
Amortization of deferred financing costs and discount on notes
338
59
SEPA fair value revaluation
118
-
Loss on sale of fixed assets
22
21
Changes in operating assets and liabilities:
Accounts receivable
44
(486
)
Prepaid expenses and other current assets
(455
)
(10,767
)
Other long-term assets
1,607
1
Accounts payable
1,102
353
Contract liability
(667
)
-
Operating lease liabilities
(30
)
(123
)
Other liabilities and customer deposits
644
(404
)
Accrued liabilities and interest payable
1,042
1,764
Net cash used in operating activities
(1,273
)
(3,473
)
Investing Activities
Purchases of property, plant and equipment
(12,365
)
(278
)
Purchases of intangible assets
(83
)
(64
)
Proceeds from sale of property, plant and equipment
-
215
Deposits on equipment, net
4,099
(2,096
)
Net cash used in investing activities
(8,349
)
(2,223
)
Financing Activities
Proceeds from common stock warrant exercises
-
2,304
Proceeds from sale of common stock on SEPA
2,005
-
Proceeds from notes
5,269
13,220
Proceeds from sale of common stock on ATM
2,178
-
Payments on notes and deferred financing costs
(3,275
)
(1,910
)
Payments on ATM
(132
)
-
Contributions from non-controlling interest
11,852
-
Distributions to non-controlling interest
(3,575
)
(5,776
)
Net cash provided by financing activities
14,322
7,838
Increase in cash & restricted cash
4,700
2,142
Cash & restricted cash – beginning of period
10,453
10,367
Cash & restricted cash – end of period
$
15,153
$
12,509
Supplemental Disclosure of Cash Flow Information
Interest paid on debt
685
203
Warrant consideration in relation to convertible notes and revaluation of warrant liability
-
7,648
Notes converted to common stock
-
3,712
Noncash membership distribution accrual
323
456
Warrant consideration in relation to Soluna Cloud
-
314
Fair value consideration for Green Cloud issuance of shares
810
-
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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Segment Information
The following table details revenue, cost of revenues, and other operating costs for the Company's reportable segments for three months ended June 30, 2025 and 2024, and reconciles to net income (loss) on the consolidated statements of operations:
For the three months ended June 30, 2024
Reconciliation of revenue
Demand response revenue (a)
-
293
9,675
Less: Segment cost of revenue
Utility costs
1,322
1,363
-
2,685
Wages, benefits, and employee related costs
190
468
-
658
Facilities and Equipment costs
336
323
-
659
Cost of revenue- depreciation
1,065
441
-
1,506
Other cost of revenue*
127
92
-
219
Total segment cost of revenue
3,040
2,687
-
5,727
General and administrative expenses
106
146
58
310
Impairment on fixed assets
-
-
-
-
Segment operating income
$
1,338
$
2,065
$
(58
)
$
3,345
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(a)
Demand response service revenue is included as a reconciling item of total revenue and not included as part of segment gross profit or loss.
*
Other cost of revenue includes insurance, outside service costs and margins, and general costs.
Expand
The following table presents the reconciliation of segment operating income (loss) to net income (loss) before taxes:
(a)
Demand response service revenue is included as a reconciling item of total revenue and not included as part of segment gross profit or loss
(b)
The reconciling general and administrative expense, exclusive of depreciation and amortization represent corporate and unallocated general and administrative expenses for the three months ended June 30, 2025 and 2024.
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The following table details revenue, cost of revenues, and other operating costs for the Company's reportable segments for six months ended June 30, 2025 and 2024, and reconciles to net income (loss) on the consolidated statements of operations:
For the six months ended June 30, 2024
Segment Revenue: Revenue from external customers
$
10,880
$
10,176
$
-
$
21,056
Reconciliation of revenue
Demand response revenue (a)
-
1,168
22,224
Less: Segment cost of revenue
Utility costs
2,699
2,720
-
5,419
Wages, benefits, and employee related costs
381
927
-
1,308
Facilities and Equipment costs
511
622
-
1,133
Cost of revenue- depreciation
2,152
877
-
3,029
Other cost of revenue*
304
309
-
613
Total segment cost of revenue
6,047
5,455
-
11,502
General and administrative expenses
107
153
58
318
Impairment on fixed assets
130
-
-
130
Segment operating income (loss)
$
4,596
$
4,568
$
(58
)
$
9,106
Expand
(a)
Demand response service revenue is included as a reconciling item of total revenue and not included as part of segment gross profit or loss.
*
Other cost of revenue includes insurance, outside service costs and margins, and general costs.
Expand
The following table presents the reconciliation of segment operating income (loss) to net income (loss) before taxes:
(a)
Demand response service revenue is included as a reconciling item of total revenue and not included as part of segment gross profit or loss
(b)
The reconciling general and administrative expense, exclusive of depreciation and amortization represent corporate and unallocated general and administrative expenses for the six months ended June 30, 2025 and 2024.
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Gross Profit Breakout:
The following table summarizes the balances for the project sites for cryptocurrency mining revenue, data hosting revenue, high-performance computing service revenue, demand response revenue, cost of cryptocurrency mining revenue, exclusive of depreciation, cost of data hosting revenue, exclusive of depreciation, cost of high-performance computing services, and cost of depreciation during the three months ended June 30, 2025:
The following table summarizes the balances for the project sites for cryptocurrency mining revenue, data hosting revenue, high-performance computing service revenue, demand response revenue, cost of cryptocurrency mining revenue, exclusive of depreciation, cost of data hosting revenue, exclusive of depreciation, cost of high-performance computing services, and cost of depreciation during the three months ended June 30, 2024:
The following table summarizes the balances for the project sites for cryptocurrency mining revenue, data hosting revenue, high-performance computing service revenue, demand response revenue, cost of cryptocurrency mining revenue, exclusive of depreciation, cost of data hosting revenue, exclusive of depreciation, cost of high-performance computing services, and cost of depreciation during the six months ended June 30, 2025:
The following table summarizes the balances for the project sites for cryptocurrency mining revenue, data hosting revenue, high-performance computing service revenue, demand response revenue, cost of cryptocurrency mining revenue, exclusive of depreciation, cost of data hosting revenue, exclusive of depreciation, cost of high-performance computing services, and cost of depreciation during the six months ended June 30, 2024:
EBITDA and Adjusted EBITDA Tables:
Reconciliations of EBITDA and Adjusted EBITDA to net loss, the most comparable GAAP financial metric, for historical periods are presented in the table below:
The following table represents the Adjusted EBITDA activity between each three-month period from January 1, 2025 through June 30, 2025.
The following table represents the Adjusted EBITDA activity between each three-month period from January 1, 2024 through December 31, 2024.