Soluna (NASDAQ:SLNH) Posts Quarterly Earnings Results, Misses Expectations By $0.07 EPS

Soluna (NASDAQ:SLNH) posted its quarterly earnings data on Thursday. The company reported ($0.18) EPS for the quarter, missing the consensus estimate of ($0.11) by ($0.07), FiscalAI reports. Soluna had a negative net margin of 190.87% and a negative return on equity of 64.80%. The company had revenue of $15.06 million during the quarter, compared to the consensus estimate 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

Shares of SLNH traded down $0.05 during midday 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’s 50 day simple moving average is $1.33 and its 200 day simple moving average is $1.21. The company has a market cap 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. The company has a quick ratio of 1.75, a current ratio of 1.75 and a debt-to-equity ratio of 0.16.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on SLNH. Zacks Research raised shares of Soluna to a “hold” rating in a research report on Tuesday, July 21st. HC Wainwright began coverage on Soluna in a report on Monday, July 20th. They issued a “buy” rating and a $4.00 price objective for the company. Weiss Ratings upgraded shares of Soluna from a “sell (e+)” rating to a “sell (d-)” rating in a report on Friday, June 12th. Finally, Wall Street Zen upgraded shares of Soluna from a “sell” rating to a “hold” rating in a research note on Saturday, April 25th. One equities research analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $4.00.

Insider Activity at Soluna

In other Soluna news, CFO Michael Picchi purchased 100,000 shares of the stock in a transaction that occurred on Thursday, May 21st. The shares were acquired at an average cost of $1.63 per share, with a total value of $163,000.00. Following the completion of the transaction, the chief financial officer owned 1,381,250 shares in the company, valued at $2,251,437.50. The trade was a 7.80% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 10.10% of the company’s stock.

Institutional Investors Weigh In On Soluna

Hedge funds and other institutional investors have recently made changes to their positions in the business. Focus Partners Wealth acquired a new position in Soluna in the 3rd quarter valued at $25,000. Squarepoint Ops LLC bought a new position in Soluna in the 4th quarter valued at about $30,000. Scientech Research LLC acquired a new position in shares of Soluna in the 3rd quarter valued at approximately $31,000. Vident Advisory LLC acquired a new position in shares of Soluna in the 4th quarter valued at approximately $67,000. Finally, OMERS ADMINISTRATION Corp bought a new stake in shares of Soluna during the 4th quarter worth approximately $81,000. 23.19% of the stock is currently owned by institutional investors and hedge funds.

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.