Greenidge Generation 2025 Q1 Earnings Misses Targets as Net Loss Widens 41%

Greenidge Generation (GREE) reported its fiscal 2025 Q1 earnings on May 15th, 2025. The total revenue of Greenidge Generation decreased by 0.5% to $19.24 million in 2025 Q1, down from $19.33 million in 2024 Q1. Greenidge's results showed a mixed performance, with revenue slightly declining and net loss widening significantly. The company did not meet analysts' expectations this quarter, and no guidance adjustment was provided.

Revenue
Greenidge Generation's revenue for Q1 2025 amounted to $19.24 million, representing a slight decline from the previous year's $19.33 million. The data center hosting segment generated $5.83 million, while cryptocurrency mining contributed $4.23 million. The power and capacity segment led with $9.19 million. Collectively, these segments underscore Greenidge's diverse revenue streams.

Earnings/Net Income
Greenidge Generation narrowed its losses per share to $0.40 in Q1 2025 from $0.42 in Q1 2024, marking a 4.8% improvement. However, the company's net loss widened to $5.56 million, a 41.1% increase from the $3.94 million loss recorded in the previous year. The EPS reflects a challenging financial position.

Price Action
The stock price of Greenidge Generation has edged up 0.99% during the latest trading day, has jumped 10.41% during the most recent full trading week, and has surged 50.44% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing Greenidge Generation (GREE) shares following a revenue drop on the financial report release date and holding for 30 days has consistently underperformed the market over the past five years. This approach yielded an annualized return of -23.3%, significantly lagging behind the US market's average return of 8%. This underperformance highlights the challenges faced by investors attempting to capitalize on the company's volatility and earnings declines, ultimately failing to capture broader market gains.

CEO Commentary
Jordan Kovler, CEO of Greenidge Generation, emphasized that the team’s disciplined execution and prudent financial management have significantly advanced the turnaround of the business. The company made substantial progress in debt reduction while exploring strategic transactions to optimize capital structure and enhance mining operations amid rising institutional and sovereign demand for Bitcoin. Kovler expressed excitement about the future, indicating a commitment to aggressively pursue opportunities that maximize value for all stakeholders.

Guidance
Greenidge anticipates adding 2.5MW of mining capacity in Q2 or Q3 2025, with a total near-term mining capacity expected to reach 161.5MW by Q2 2026, excluding any future transactions. The company is actively evaluating additional sites with significant low-cost power capacity to support its growth strategy.

Additional News
In recent developments, Greenidge Generation announced changes to its Board of Directors on April 16, 2025. This strategic move aims to strengthen the company's leadership team. Additionally, on March 6, 2025, the company reported preliminary financial and operating results for the fourth quarter and full year of 2024, offering insights into its performance as it navigates operational challenges. In a collaborative move, Greenidge Generation provided more than 90% of its electrical production to the local power grid during a recent cold spell, demonstrating its commitment to supporting community energy needs.