Soluna Reports Q2 Revenue of $6.2M, Down 36% Y/Y, Adjusted EBITDA Turns Negative

Soluna's Q2 revenue fell 36% to $6.2mln, missing estimates and narrowing its net loss to $7.8mln. Adjusted EBITDA turned negative at $(1.23mln), down from $1.80mln in the prior year. Unrestricted cash increased by $2mln to $9.9mln as of June 30, 2025. The company is focusing on expanding its renewable-powered sites and refining its capital structure, with success depending on scaling its pipeline, managing project costs, and ensuring a steady flow of capital.

Soluna Holdings, Inc. (SLNH) released its Q2 2025 financial results, showing a significant decline in revenue and a narrower net loss compared to the prior year. The company's revenue fell to $6.2 million, down 36% year over year, missing estimates of $8.10 million. This decline was primarily attributed to the impact of the Bitcoin halving event in April 2024, which weakened mining economics [2].

Despite the revenue drop, Soluna reported a net loss of $7.8 million, a narrowing from the prior year's $15.1 million. Earnings per share improved to $(0.69), down from $(2.97) in the previous year. Adjusted EBITDA turned negative at $(1.23 million), a decrease from $1.80 million in the prior year. The company's unrestricted cash increased by $2.0 million to $9.9 million as of June 30, 2025 [2].

Soluna's focus remains on expanding its renewable-powered data center sites and refining its capital structure. The company launched several large projects during the quarter, including its first solar-powered data center, Project Annie, and new wind-powered sites. The total project pipeline reached 2.8 gigawatts, up from 2.6 gigawatts at the end of December 2024. The ongoing expansion of Project Dorothy 2 in Texas is on track for completion in the fourth quarter of 2025 [2].

Management expects revenue to stabilize and grow as additional megawatts of Bitcoin Hosting capacity are commissioned over the next two years. However, the company reiterated its need for further capital to support these expansions and signaled plans for another equity offering that could increase dilution risk [2].

Investors should watch for the ramp-up of Dorothy 2 and Kati 1, trends in operating margins, and the ability to keep cost growth in check. The company's future depends on converting its large pipeline of potential projects into operational and profitable assets while navigating market cycles in Bitcoin mining and hosting [2].

References:
[1] https://www.tipranks.com/news/company-announcements/soluna-holdings-reports-q2-2025-financial-results
[2] https://www.nasdaq.com/articles/soluna-revenue-falls-36-percent
[3] https://www.theglobeandmail.com/investing/markets/markets-news/Motley%20Fool/34178385/soluna-revenue-falls-36-percent/