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

Soluna (NASDAQ:SLNH) posted its 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. The business had revenue of $15.06 million during the quarter, compared to the consensus estimate of $15.70 million. Soluna had a negative return on equity of 64.80% and a negative net margin of 190.87%.

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 Trading Down 3.7%

NASDAQ SLNH traded down $0.05 during trading on Thursday, hitting $1.30. The stock had a trading volume of 13,730,211 shares, compared to its average volume of 11,009,872. Soluna has a one year low of $0.41 and a one year high of $5.14. The stock has a 50 day simple moving average of $1.33 and a 200 day simple moving average of $1.21. The stock has a market capitalization of $205.07 million, a price-to-earnings ratio of -0.80 and a beta of 5.13. The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.75 and a current ratio of 1.75.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on the company. Zacks Research upgraded Soluna to a “hold” rating in a research report on Tuesday, July 21st. HC Wainwright started coverage on Soluna in a report on Monday, July 20th. They issued a “buy” rating and a $4.00 target price for the company. Weiss Ratings raised Soluna from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Friday, June 12th. Finally, Wall Street Zen upgraded Soluna from a “sell” rating to a “hold” rating in a report on Saturday, April 25th. One equities research analyst has rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $4.00.

Insider Activity at Soluna

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

Hedge Funds Weigh In On Soluna

Large investors have recently bought and sold shares of the business. Heights Capital Management Inc. bought a new stake in shares of Soluna during the fourth quarter worth $2,391,000. Marshall Wace LLP purchased a new stake in shares of Soluna during the fourth quarter valued at $272,000. State Street Corp grew its holdings in shares of Soluna by 90.7% in the fourth quarter. State Street Corp now owns 188,376 shares of the company’s stock worth $220,000 after purchasing an additional 89,582 shares during the last quarter. Jane Street Group LLC grew its holdings in shares of Soluna by 989.3% in the fourth quarter. Jane Street Group LLC now owns 665,649 shares of the company’s stock worth $779,000 after purchasing an additional 604,540 shares during the last quarter. Finally, Renaissance Technologies LLC purchased a new position in Soluna in the 4th quarter worth about $299,000. Hedge funds and other 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.