CleanSpark 2025 Q4 Earnings 98.5% Net Loss Reduction and 150.5% Revenue Surge

CleanSpark (CLSK) reported Q4 2025 earnings that significantly outperformed expectations, with a dramatic reduction in net losses and record revenue growth. The company narrowed its net loss by 98.5% year-over-year to $925,000 and achieved a 150.5% revenue increase to $223.65 million. Management provided updated guidance, emphasizing progress on AI infrastructure expansion, including S21 XP deployment and 285 MW Texas site energization by 2027.

Revenue

CleanSpark’s total revenue surged 150.5% to $223.65 million in Q4 2025, driven by Bitcoin mining operations and digital infrastructure growth. The company’s operational hash rate reached 50 exahash, supporting its Bitcoin treasury expansion to over 13,000 BTC.

Earnings/Net Income

The company narrowed losses to $0.00 per share in Q4 2025, a 98.0% improvement from a $0.23 loss per share in Q4 2024. Net losses fell to $925,000, a 98.5% reduction from $62.18 million in the prior year. This marked a historic turnaround, with CleanSpark achieving its highest Q4 net income in nine years. The EPS improvement reflects strategic operational efficiency and capital stewardship.

Post-Earnings Price Action Review

The strategy of buying CleanSpark shares after its Q4 revenue decline and holding for 30 days yielded a 13.30% return, underperforming the benchmark’s 66.73%. With a CAGR of 4.36%, zero maximum drawdown, and a Sharpe ratio of 0.05, the approach was low-risk but modest in returns.

CEO Commentary

CEO Matt Schultz highlighted 2025’s record $766 million revenue and 55% gross margin, driven by Bitcoin mining and infrastructure expansion. Strategic priorities include transitioning to an AI infrastructure platform, deploying 19,000 S21 XP immersion units by Q1 2026, and securing AI tenants for Texas sites. Schultz emphasized leveraging Bitcoin’s 55% gross margin as a capital asset and expanding power/land acquisitions via the $1.15B convertible note.

Guidance

CleanSpark aims to complete S21 XP deployment by Q1 2026, energize 285 MW in Texas by 2027, and scale AI campuses using Submer’s modular solutions. The company plans to monetize its Bitcoin treasury through yield strategies and maintain 50%-55% gross margins in mining.

Additional News

CleanSpark secured a $1.15 billion 0% convertible note, its largest financing ever, and executed a $460 million share buyback, reducing shares by 10.9%. CEO Matt Schultz returned to the CEO role in August 2025, emphasizing operational excellence and AI infrastructure expansion. The company acquired 271 acres in Texas and 285 MW of power for future AI campuses, positioning itself to capitalize on surging compute demand.