Soluna Holdings 2025 Q1 Earnings Net Loss Widens 189.1%

Soluna Holdings (SLNH) reported its fiscal 2025 Q1 earnings on May 15th, 2025. The company's net loss widened to $-7.35 million, representing a 189.1% increase from a $-2.54 million loss recorded in 2024 Q1. Despite this, Soluna Holdings managed to narrow its losses to $0.88 per share, marking a 66.4% improvement from the $2.62 per share loss in the previous year. The company remains optimistic about future revenue growth, anticipating recovery driven by strategic project developments.

Revenue

Soluna Holdings saw its total revenue decrease by 52.7% to $5.94 million in Q1 2025, compared to $12.55 million in Q1 2024. Cryptocurrency mining revenue accounted for $3 million, while data hosting revenue contributed $2.40 million. Demand response services generated $507,000, and high-performance computing services added $28,000. Despite the decline, these figures illustrate the diverse revenue streams within the company.

Earnings/Net Income

Soluna Holdings narrowed its loss per share to $0.88 in Q1 2025, significantly improving from the $2.62 per share loss in Q1 2024. However, the company's net loss widened to $-7.35 million, a 189.1% increase from the $-2.54 million loss in the previous year, indicating ongoing financial challenges despite improved EPS.

Price Action

The stock price of Soluna Holdings dropped by 4.71% during the latest trading day and edged down 0.49% during the past week. However, it surged by 30.86% month-to-date, reflecting a volatile price movement following the earnings report.

Post-Earnings Price Action Review

The strategy of purchasing Soluna Holdings (SLNH) shares after the release of its earnings report and holding for 30 days has historically resulted in significant losses. A five-year backtest of this strategy yielded a return of -52.7%, translating to an average annual return of -12.4%. This performance suggests the strategy has been ineffective, likely due to the company's ongoing revenue decline and negative EPS of -$0.88. These metrics underscore the challenges faced by Soluna Holdings, which have adversely affected its stock performance over the years.

CEO Commentary

"Our outlook shines brighter with expanding project development at Projects Rosa, Ellen, and Hedy," said John Belizaire, CEO of Soluna. He acknowledged operational stamina amid challenges like market headwinds and customer deployment delays, while highlighting the ongoing construction of Project Dorothy 2, which aims to boost Bitcoin hosting capacity to 123MW. Belizaire emphasized the company's growth potential with an expanded project pipeline in South Texas, focusing on sustainable AI compute and Bitcoin hosting, indicating a positive trajectory for the company's operational and strategic priorities.

Guidance

Soluna anticipates revenue stabilization and growth as it commissions additional megawatts of Bitcoin hosting capacity, particularly from Projects Dorothy 2 and Kati over the next two years. The company acknowledges a short-term revenue decline but expects recovery driven by the one-time nature of commercial model shifts and data center downtime. The leadership is optimistic about meeting future demand as the market landscape evolves.

Additional News

In recent weeks, Soluna Holdings has focused on simplifying its capital structure, including the full conversion of outstanding convertible loan notes and restructuring its Preferred B equity. Additionally, the company paid off the Navitas loan at Project Dorothy 1B, enhancing its financial flexibility. Soluna also secured a $5 million debt facility with Galaxy Digital, backed by the assets of Project Sophie, indicating a strategic move to support ongoing project development. Such financial maneuvers are crucial for strengthening the company’s ability to raise growth capital and execute its strategic plan.