Riot Platforms Anticipates 101% Revenue Surge in Q1 2025 Earnings

Riot Platforms (RIOT) is set to release its first-quarter Fiscal 2025 results after the market closes on May 1, and analysts are closely watching the company's performance. RIOT stock currently holds a Strong Buy consensus rating on TipRanks, backed by 10 unanimous Buy ratings, indicating a high level of optimism among analysts regarding the company's long-term prospects.

Riot Platforms, primarily known as a bitcoin mining company, is strategically pivoting its focus towards the artificial intelligence (AI) and high-performance computing (HPC) sectors. The company is actively pursuing deals with AI and HPC firms to lease its mining facilities in Corsicana and Rockdale, aiming to diversify its revenue streams and capitalize on the growing demand for high-performance computing solutions.

According to analyst forecasts, Riot is expected to report an adjusted loss of $0.33 per share for the first quarter, a significant decline from the $0.82 profit per share recorded in the same period last year. However, revenue is projected to surge by 101%, reaching $159.62 million, reflecting the company's efforts to expand its operations and explore new business opportunities.

Piper Sandler analyst Patrick Moley recently reiterated his Buy rating on RIOT stock but lowered the price target by 22%, from $23 to $18. Despite the reduction, the revised price target still suggests a substantial 142.6% upside potential from current levels. Moley's valuation is based on a multiple of 7 times Riot’s revenue estimates for Fiscal 2026. The analyst highlighted the significance of activist investor D.E. Shaw’s recently disclosed stake in Riot Platforms, as well as the strategic investments made by hedge fund Starboard Value. These developments have led to a board reshuffle and the completion of the Corsicana facility, positioning Riot for future growth.

Moley anticipates that the management will provide updates on several key factors during the earnings call, including the findings of the Corsicana feasibility study, potential discussions with parties interested in AI/HPC deals at either facility, guidance on hashrate, and Riot’s bitcoin treasury strategy. These updates will be crucial in assessing the company's progress and future direction.

On TipRanks, the average price target for Riot Platforms is $16.75, implying a potential upside of 125.7% from current levels. Despite the stock's 27.3% decline so far this year, analysts remain optimistic about its long-term prospects, driven by the company's strategic initiatives and the growing demand for AI and HPC solutions.