Marathon Digital (NASDAQ:MARA) Issues Quarterly Earnings Results, Misses Expectations By $4.29 EPS

Marathon Digital (NASDAQ:MARA) released its quarterly earnings data on Thursday. The business services provider reported ($4.52) EPS for the quarter, missing the consensus estimate of ($0.23) by ($4.29), FiscalAI reports. Marathon Digital had a net margin of 100.82% and a negative return on equity of 2.59%. The company had revenue of $202.31 million during the quarter, compared to analysts’ expectations of $250.74 million. During the same period last year, the business earned $1.24 earnings per share. The company’s revenue for the quarter was down 5.6% compared to the same quarter last year.

Here are the key takeaways from Marathon Digital’s conference call:

• The company announced a Starwood Digital Ventures joint venture to develop AI/HPC data centers on MARA’s power-rich sites, targeting >1 GW near-term with a pathway to >2.5 GW and the option to retain up to 50% ownership, which should accelerate hyperscaler tenancy and access to institutional capital.
• MARA completed acquisition of a 64% stake in Exaion, gaining sovereign/private-cloud and enterprise AI capabilities (particularly in Europe) to pursue regulated and edge inference workloads that complement the Starwood partnership.
• Q4 produced a reported net loss of $1.7 billion driven largely by a $1.5 billion fair-value write-down on digital assets and an $82.8 million non‑cash goodwill impairment, highlighting material earnings volatility tied to Bitcoin price moves.
• Operational scale and cost efficiency improved — energized hash rate rose ~25% to 66.4 EH/s, Bitcoin holdings increased ~20% to ~53,822 BTC, site cost/kWh was ~$0.04, and petahash-per-day costs improved year-over-year, supporting lower mining costs and flexibility to monetize BTC opportunistically.

Marathon Digital Stock Down 1.4%

Shares of MARA stock traded down $0.12 during mid-day trading on Thursday, reaching $8.45. 49,549,697 shares of the company were exchanged, compared to its average volume of 46,086,600. The company has a debt-to-equity ratio of 0.63, a quick ratio of 2.09 and a current ratio of 2.09. The business’s 50 day simple moving average is $9.35 and its 200 day simple moving average is $13.54. The company has a market capitalization of $3.20 billion, a P/E ratio of 4.69 and a beta of 5.56. Marathon Digital has a fifty-two week low of $6.66 and a fifty-two week high of $23.45.

Wall Street Analyst Weigh In

MARA has been the topic of several recent research reports. Compass Point raised Marathon Digital from a “neutral” rating to a “buy” rating and set a $30.00 price target on the stock in a research report on Monday, November 24th. JPMorgan Chase & Co. dropped their price objective on shares of Marathon Digital from $20.00 to $13.00 and set an “overweight” rating on the stock in a research note on Monday, November 24th. Piper Sandler decreased their target price on shares of Marathon Digital from $26.00 to $16.00 and set an “overweight” rating for the company in a research note on Wednesday, January 14th. Rosenblatt Securities lowered their price target on shares of Marathon Digital from $25.00 to $22.00 and set a “buy” rating for the company in a report on Wednesday, November 5th. Finally, Weiss Ratings upgraded shares of Marathon Digital from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, February 20th. Eight equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $21.00.

Trending Headlines about Marathon Digital

Here are the key news stories impacting Marathon Digital this week:

• Positive Sentiment: Marathon announced a strategic AI/infrastructure venture (Starwood partnership) to convert power capacity into AI and HPC data‑center capacity — a potential new, higher‑margin revenue stream that helps de‑correlate the business from Bitcoin price swings. Marathon Digital surges 13% on AI infrastructure venture
• Positive Sentiment: Sector momentum — including strong daily inflows into Bitcoin ETFs — lifted miner stocks and supported MARA into the session’s close/after‑hours. This flow backdrop can amplify positive news for miners. Trump-Linked Miner Reports Results, MARA Surges On AI Partnership
• Neutral Sentiment: Brokerage consensus remains constructive (consensus “Moderate Buy”), which could limit downside if execution on the AI pivot and mining operations track to plan. MARA Receives Consensus Rating of “Moderate Buy”
• Neutral Sentiment: The company issued its preliminary Q4/fiscal‑2025 results letter to shareholders (formal release/slide deck available), providing the official metrics investors are parsing. MARA Announces Fourth-Quarter and Fiscal Year 2025 Results
• Negative Sentiment: Quarterly results showed a steep EPS miss: reported loss per share of ($4.52) vs. consensus (~($0.23)), and revenue of $202.3M below estimates — driven largely by non‑cash markdowns on held Bitcoin. These accounting hits pressured the stock intraday. View Slide Deck
• Negative Sentiment: Analysts and press flagged increased scrutiny of Marathon’s Bitcoin‑centric strategy and accounting volatility — a reminder that large paper impairments and macro/trade uncertainty can produce outsized headline moves. Marathon Digital earnings loom as bitcoin strategy draws scrutiny

Insiders Place Their Bets

In other Marathon Digital news, CFO Salman Hassan Khan sold 34,732 shares of the firm’s stock in a transaction on Monday, December 15th. The shares were sold at an average price of $11.48, for a total transaction of $398,723.36. Following the completion of the transaction, the chief financial officer directly owned 248,566 shares of the company’s stock, valued at $2,853,537.68. This trade represents a 12.26% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Frederick G. Thiel sold 27,505 shares of the business’s stock in a transaction dated Tuesday, January 20th. The stock was sold at an average price of $10.80, for a total transaction of $297,054.00. Following the completion of the sale, the chief executive officer directly owned 3,517,566 shares of the company’s stock, valued at $37,989,712.80. The trade was a 0.78% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 133,247 shares of company stock worth $1,325,255 over the last quarter. 0.80% of the stock is currently owned by insiders.

Institutional Trading of Marathon Digital

Institutional investors and hedge funds have recently bought and sold shares of the company. UBS Group AG grew its position in shares of Marathon Digital by 104.1% in the 3rd quarter. UBS Group AG now owns 12,098,686 shares of the business services provider’s stock worth $220,922,000 after acquiring an additional 6,172,110 shares in the last quarter. Voloridge Investment Management LLC acquired a new position in Marathon Digital in the third quarter worth $93,066,000. Van ECK Associates Corp increased its stake in Marathon Digital by 125.4% during the fourth quarter. Van ECK Associates Corp now owns 2,727,069 shares of the business services provider’s stock valued at $24,489,000 after purchasing an additional 1,516,937 shares during the last quarter. Jump Financial LLC raised its holdings in shares of Marathon Digital by 6,485.5% during the third quarter. Jump Financial LLC now owns 1,361,879 shares of the business services provider’s stock worth $24,868,000 after purchasing an additional 1,341,199 shares during the period. Finally, Wells Fargo & Company MN raised its holdings in shares of Marathon Digital by 214.7% during the fourth quarter. Wells Fargo & Company MN now owns 1,765,555 shares of the business services provider’s stock worth $15,855,000 after purchasing an additional 1,204,449 shares during the period. Institutional investors and hedge funds own 44.53% of the company’s stock.

Marathon Digital Company Profile

Marathon Digital Holdings, Inc is a digital asset technology company specializing in the mining and acquisition of bitcoin. Headquartered in Las Vegas, Nevada, the firm employs high-performance application-specific integrated circuit (ASIC) miners and proprietary software to secure the Bitcoin network and expand its crypto-mining footprint. Marathon Digital focuses on operational efficiency and scalability, while maintaining rigorous standards for regulatory compliance and corporate governance.

The company operates multiple large-scale mining facilities throughout North America, including sites in Texas, Montana and New York.