Soluna (NASDAQ:SLNH) Issues Earnings Results, Misses Estimates By $0.07 EPS

Soluna (NASDAQ:SLNH) posted its quarterly earnings data on Thursday. The company reported ($0.18) earnings per share for the quarter, missing the consensus estimate of ($0.11) by ($0.07), FiscalAI reports. Soluna had a negative return on equity of 66.83% and a negative net margin of 182.16%.The firm had revenue of $15.06 million for the quarter, compared to analysts’ expectations of $15.70 million.

Here are the key takeaways from Soluna’s conference call:

• Revenue increased 145% year over year to $15.1 million, marking the fifth consecutive quarter of sequential growth. Excluding the new gross presentation of pass-through electricity costs, revenue still grew 73% year over year and 13% sequentially.
• Soluna strengthened its AI infrastructure portfolio by acquiring the 150-megawatt Briscoe Wind Farm, consolidating full ownership of Project Dorothy 1, and advancing the 350-plus-megawatt Kati 2 and 300-plus-megawatt Dorothy 3 campuses. Its total power pipeline expanded to approximately 6.3 gigawatts, including more than 1.6 gigawatts in AI development.
• Liquidity improved materially, with $113 million in cash available for operations and development and total debt of $33.1 million at quarter-end. Management plans to finance large AI campuses primarily through project-level debt backed by contracted tenant cash flows, potentially limiting corporate balance-sheet requirements.
• Gross profit fell 35% year over year to $766,000, while net loss widened to $22.6 million from $7.8 million. Results were pressured by startup costs at Kati 1, approximately $1.5 million of Briscoe repairs and maintenance, higher interest expense, and a 40% decline in proprietary mining revenue as hash prices weakened.
• Management said Soluna’s energized, behind-the-meter Texas sites should have limited direct exposure to the state’s ERCOT data-center queue audit, but acknowledged that the review process is still developing. Kati 2 has a tenant letter of intent and is targeting initial readiness roughly 15 months after a signed contract, while Dorothy 3 formal marketing is expected to begin in the fall.

Soluna Stock Up 0.8%

Shares of Soluna stock traded up $0.01 on Friday, hitting $1.31. 11,678,174 shares of the company traded hands, compared to its average volume of 11,043,408. The company has a 50-day moving average price of $1.33 and a 200 day moving average price of $1.21. The company has a quick ratio of 1.75, a current ratio of 1.75 and a debt-to-equity ratio of 0.16. Soluna has a 12-month low of $0.41 and a 12-month high of $5.14. The company has a market cap of $206.65 million, a PE ratio of -0.80 and a beta of 5.13.

Analysts Set New Price Targets

Several analysts have recently commented on SLNH shares. Wall Street Zen raised Soluna from a “sell” rating to a “hold” rating in a research report on Saturday, April 25th. Zacks Research raised Soluna to a “hold” rating in a research note on Tuesday, July 21st. Weiss Ratings upgraded Soluna from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Friday, June 12th. Finally, HC Wainwright began coverage on Soluna in a research note on Monday, July 20th. They set a “buy” rating and a $4.00 target price on the stock. One equities research analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $4.00.

Insider Activity

In other news, CFO Michael Picchi acquired 100,000 shares of the business’s stock in a transaction that occurred on Thursday, May 21st. The stock was acquired at an average cost of $1.63 per share, for a total transaction of $163,000.00. Following the completion of the acquisition, the chief financial officer owned 1,381,250 shares in the company, valued at approximately $2,251,437.50. The trade was a 7.80% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 10.10% of the company’s stock.

Institutional Investors Weigh In On Soluna

Hedge funds and other institutional investors have recently made changes to their positions in the company. Heights Capital Management Inc. acquired a new stake in shares of Soluna during the 4th quarter valued at about $2,391,000. Geode Capital Management LLC raised its position in Soluna by 756.0% during the fourth quarter. Geode Capital Management LLC now owns 1,889,533 shares of the company’s stock valued at $2,211,000 after acquiring an additional 1,668,801 shares in the last quarter. Jane Street Group LLC raised its position in Soluna by 989.3% during the fourth quarter. Jane Street Group LLC now owns 665,649 shares of the company’s stock valued at $779,000 after acquiring an additional 604,540 shares in the last quarter. Renaissance Technologies LLC acquired a new stake in Soluna in the fourth quarter valued at approximately $299,000. Finally, Marshall Wace LLP acquired a new stake in Soluna in the fourth quarter valued at approximately $272,000. 23.19% of the stock is owned by hedge funds and other institutional investors.

Soluna Company Profile

Soluna Computing, Inc (NASDAQ: SLNH) is a renewable energy and computing company that develops, constructs and operates utility‐scale wind and solar projects designed to power high-performance computing workloads. By integrating power generation with data processing infrastructure, Soluna targets applications such as cryptocurrency mining, blockchain validation, artificial intelligence training and other cloud‐based or on-premises computing tasks that can flex to available renewable output.

The company manages the full project lifecycle—site selection, permitting, engineering, procurement, construction and operations—with a focus on regions that offer abundant wind or solar resources yet face limitations in grid infrastructure.