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

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

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 Stock Up 3.5%

MARA stock traded up $0.45 during trading on Monday, reaching $13.39. 49,366,365 shares of the company traded hands, compared to its average volume of 46,986,172. Marathon Digital has a 12 month low of $6.66 and a 12 month high of $23.45. The business has a 50 day simple moving average of $9.69 and a 200 day simple moving average of $10.93. The company has a market capitalization of $5.10 billion, a price-to-earnings 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.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the company. HC Wainwright reissued a “neutral” rating on shares of Marathon Digital in a research report on Friday, February 27th. Piper Sandler dropped their price target 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 increased their price target on Marathon Digital from $11.00 to $15.00 and gave the stock a “buy” rating in a research report on Friday, May 1st. Morgan Stanley initiated coverage on Marathon Digital in a research report on Monday, February 9th. They set an “underweight” rating and a $8.00 price target on the stock. Finally, Weiss Ratings downgraded Marathon Digital from a “hold (c-)” rating to a “sell (d)” rating in a research report on Friday, March 6th. Seven equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, Marathon Digital presently has an average rating of “Hold” and an average price target 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 stock in a transaction dated Friday, April 17th. The stock was sold at an average price of $11.68, for a total value of $321,258.40. Following the completion of the sale, the chief executive officer directly owned 4,725,219 shares in the company, valued at approximately $55,190,557.92. This trade represents a 0.58% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Zabi Nowaid sold 42,090 shares of the stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $12.00, for a total value of $505,080.00. Following the completion of the sale, the general counsel owned 1,007,047 shares of the company’s stock, valued at approximately $12,084,564. This trade represents a 4.01% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 172,605 shares of company stock worth $1,745,843. 0.80% of the stock is owned by insiders.

Institutional Investors Weigh In On Marathon Digital

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Integrated Wealth Concepts LLC raised its stake in Marathon Digital by 9.8% in the first quarter. Integrated Wealth Concepts LLC now owns 11,073 shares of the business services provider’s stock valued at $127,000 after buying an additional 991 shares during the last quarter. Osaic Holdings Inc. raised its stake in shares of Marathon Digital by 38.6% in the second quarter. Osaic Holdings Inc. now owns 4,816 shares of the business services provider’s stock worth $76,000 after purchasing an additional 1,340 shares during the last quarter. United Services Automobile Association raised its stake in shares of Marathon Digital by 8.2% in the first quarter. United Services Automobile Association now owns 20,634 shares of the business services provider’s stock worth $257,000 after purchasing an additional 1,569 shares during the last quarter. NewEdge Advisors LLC raised its stake in shares of Marathon Digital by 19.6% in the fourth quarter. NewEdge Advisors LLC now owns 11,053 shares of the business services provider’s stock worth $99,000 after purchasing an additional 1,811 shares during the last quarter. Finally, CI Investments Inc. raised its stake in shares of Marathon Digital by 17.1% in the fourth quarter. CI Investments Inc. now owns 12,563 shares of the business services provider’s stock worth $113,000 after purchasing an additional 1,830 shares during the last quarter. 44.53% of the stock is currently owned by hedge funds and other institutional investors.

About Marathon Digital

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.