Soluna (SLNH) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 was $9.4 million, up 58% year-over-year, marking the fourth consecutive quarter of sequential growth, driven by strong data hosting, new project launches, and expansions.

• Net loss widened to $17.9 million from $7.4 million a year ago, primarily due to higher general and administrative expenses, equity compensation, and increased interest expense.

• Major strategic developments included the $53 million acquisition of Briscoe Wind Farm and full ownership of Project Dorothy 1A, advancing vertical integration and AI campus expansion.

• Operational milestones included early completion of Kati 1A (48 MW), progress on Kati 2 AI JV, and full ramp-up of Dorothy 2.

• The company operates 159 MW across three active sites, with 47 MW under construction and over 900 MW in advanced development.

Financial highlights

• Data hosting revenue surged 178% year-over-year to $6.7 million, now representing 71% of total revenue.

• Cryptocurrency mining revenue fell 28% to $2.2 million, reflecting lower hashprice and Bitcoin prices.

• Adjusted EBITDA loss was $2.1 million, improving sequentially but down year-over-year due to higher operating expenses.

• Gross profit rose to $1.9 million, with strong margins at Dorothy 1A (36%), Dorothy 2 (41%), and Sophie (37%).

• Cash and restricted cash totaled $85.9 million at quarter-end, with positive working capital of $38.8 million.

Outlook and guidance

• Focus for 2026 is on expanding the 4.3 GW renewable computing pipeline, advancing AI-ready data centers, and optimizing project profitability.

• AI expansion at Kati 2 is progressing, with over 100 MW of capacity targeted and procurement underway.

• Dorothy 3 AI campus (300+ MW) launched, leveraging Briscoe Wind for integrated renewable computing.

• The Briscoe Wind Farm acquisition is expected to be immediately accretive to revenue and Adjusted EBITDA.

• Management plans to fund growth through a mix of operating cash flow, equity, and project-level debt, including a new $250 million Standby Equity Purchase Agreement.