MARA (NASDAQ:MARA) Issues Earnings Results

MARA (NASDAQ:MARA) announced its quarterly earnings results on Monday. The business services provider reported $1.28 earnings per share for the quarter, beating the consensus estimate of ($0.39) by $1.67, FiscalAI reports. MARA had a negative return on equity of 37.38% and a negative net margin of 411.23%. The firm had revenue of $164.23 million during the quarter, compared to analyst estimates of $183.24 million.

Here are the key takeaways from MARA’s conference call:

• Q3 revenue fell to $164.2 million from $252.4 million a year earlier, mainly because the average Bitcoin price was 37% lower. Net income of $632.1 million included an $885.3 million unrealized digital-asset gain, so reported profit was substantially boosted by a non-cash item.
• MARA received FERC approval for the Long Ridge acquisition and expects to close in the coming weeks. The plant currently operates at 485 MW, has about 70% of output hedged under long-term contracts, and has historically generated more than $140 million in annualized Adjusted EBITDA; the site also offers data-center development potential.
• The company is targeting two AI/HPC lease signings before year-end, but said timing could slip into next year as prospective tenants complete their processes. MARA described tenant discussions as advanced, but has not yet signed those leases.
• MARA said it has reduced debt by $1.4 billion, or 37%, since the start of the year, including repaying $750 million of Bitcoin-backed borrowing after quarter-end. The repayment released 18,750 pledged Bitcoin, and the board also authorized a discretionary share-repurchase program of up to $500 million.
• Exaion signed a four-year, $79 million GPU-as-a-service agreement with a U.S. customer under 100% take-or-pay terms. Management cited a pipeline exceeding $3 billion in total contract value, while noting that the pipeline is not contracted and roughly $1 billion is targeted for delivery by the end of 2027.

MARA Stock Up 10.5%

MARA opened at $7.34 on Wednesday. The business’s 50-day simple moving average is $9.73 and its 200-day simple moving average is $10.65. The company has a debt-to-equity ratio of 1.15, a quick ratio of 0.89 and a current ratio of 0.89. MARA has a one year low of $5.69 and a one year high of $16.43. The stock has a market capitalization of $2.84 billion, a P/E ratio of -0.90 and a beta of 5.23.

Insider Buying and Selling at MARA

In related news, General Counsel Zabi Nowaid sold 8,376 shares of the company’s stock in a transaction on Friday, August 21st. The shares were sold at an average price of $12.00, for a total value of $100,512.00. Following the completion of the sale, the general counsel owned 898,780 shares in the company, valued at $10,785,360. This represents a 0.92% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Frederick Thiel sold 27,505 shares of the company’s stock in a transaction dated Monday, November 2nd. The shares were sold at an average price of $6.79, for a total transaction of $186,758.95. Following the completion of the sale, the chief executive officer directly owned 4,149,585 shares of the company’s stock, valued at $28,175,682.15. The trade was a 0.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 134,396 shares of company stock worth $1,311,490. 0.97% of the stock is owned by insiders.

Analyst Ratings Changes

A number of research analysts have weighed in on MARA shares. Guggenheim restated a “neutral” rating on shares of MARA in a report on Tuesday. HC Wainwright began coverage on MARA in a report on Friday, September 11th. They issued a “buy” rating and a $20.00 target price for the company. Cantor Fitzgerald cut their price target on shares of MARA from $14.00 to $12.00 and set an “overweight” rating for the company in a report on Friday, August 7th. Weiss Ratings raised MARA from a “sell (d-)” rating to a “sell (d)” rating in a research report on Tuesday. Finally, JPMorgan Chase & Co. downgraded shares of MARA from an “overweight” rating to an “underweight” rating and dropped their target price for the company from $13.00 to $11.00 in a report on Monday, September 14th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, one has issued a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat, MARA has a consensus rating of “Hold” and a consensus target price of $16.22.

Trending Headlines about MARA

Here are the key news stories impacting MARA this week:

• Positive Sentiment: MARA authorized a discretionary share repurchase program of up to $500 million, which could signal management confidence and provide support for the stock. Article: MARA Holdings advances after Q3 results and buyback plan
• Positive Sentiment: The company sold 13,597 BTC for about $1.1 billion and used $750 million to repay its bitcoin-collateralized loans. The paydown reduces leverage and frees bitcoin previously pledged as collateral. Article: MARA dumps Bitcoin to erase collateral risk
• Neutral Sentiment: MARA is positioning its power assets for AI and data-center demand, with roughly 1 GW of capacity and a goal of exceeding 4 GW. That could diversify revenue beyond mining, but execution and financing will matter. Article: MARA touts AI demand and targets a 4 GW power portfolio
• Negative Sentiment: Third-quarter revenue was about $164 million, down 35% year over year and below analyst expectations. The reported profit was substantially supported by gains in bitcoin’s value, making the headline earnings beat less indicative of underlying operating performance. Article: MARA buyback boosts shares; what investors need to know
• Negative Sentiment: Management indicated more bitcoin sales may follow to fund strategic needs, which could reduce exposure to future bitcoin appreciation. Rosenblatt also lowered its price target from $15 to $11, while retaining a Buy rating. Article: MARA sold bitcoin and plans further sales

MARA Company Profile

MARA Holdings, Inc., formerly known as Marathon Digital Holdings, is a digital energy and infrastructure company focused primarily on Bitcoin mining. It develops and operates data-center infrastructure and specialized computing systems used to validate transactions on the Bitcoin network and earn bitcoin rewards. The company also works on energy-related strategies to support its computing operations, including using energy sources and infrastructure that can help power data centers. Its operations are concentrated in the United States, with expansion into international markets.