Soluna Reports Q1'26 Results; Revenue Grows 58% Year-Over-Year and 4th Consecutive Quarter Sequentially
$SLNH #SLNH--Soluna Holdings, Inc. (“Soluna” or the “Company”) (NASDAQ: SLNH), a developer of green data centers for intensive computing applications, including Bitcoin mining and AI, announce...
Completes Kati 1A Ahead of Schedule, Advances Kati 2 AI JV
ALBANY, N.Y.: $SLNH #SLNH--Soluna Holdings, Inc. (“Soluna” or the “Company”) (NASDAQ: SLNH), a developer of green data centers for intensive computing applications, including Bitcoin mining and AI, announced its financial results for the first quarter ended March 31, 2026.
“Our fourth consecutive quarter of sequential revenue growth and 58% year-over-year increase reflects the operating leverage we're building across the portfolio. With Kati 1 now contributing, Dorothy 1A back at full capacity, and Dorothy 2 fully ramped, we're entering the next phase of Soluna's growth from a position of operational strength,” said John Belizaire, CEO of Soluna Holdings.
“Our AI expansion at Kati 2 is well underway, while Briscoe Wind now vertically integrates the power layer supporting Dorothy 3. Together with the full acquisition of Dorothy 1A, these milestones position Soluna for sustained growth and accelerating momentum,” Belizaire continued.
Q1 2026 Operational and Corporate Highlights:
- Project Kati 1A Reaches Completion Ahead of Schedule – All three phases of Project Kati 1A, totaling 48 MW, reached completion ahead of schedule, supported by $10.9 million in project-level financing from Spring Lane Capital.
- Project Kati 2 Advances with AI Partnership – Soluna partnered with Metrobloks to unlock 100+ MW of AI and HPC capacity, secured 500+ acres of additional land, advanced Phase 1 to 30% schematic design, and began procurement of long-lead equipment for the up to 300 MW+ site.
- Project Dorothy 1A Fleet Upgrade Completed – Soluna completed a 20 MW fleet upgrade at Dorothy 1A, returning the site to full capacity and improving fleet-wide efficiency.
- Expanded Blockware Partnership at Project Dorothy 1A – Soluna expanded its hosting relationship with Blockware, adding 6 MW at Project Dorothy 1A, strengthening utilization at the site.
- Development Pipeline Surpasses 4.3 GW – Soluna's pipeline grew to 4.3 GW through new and expanded IPP partnerships, anchored by an AI-focused pipeline including Kati 2 (300 MW+), Dorothy 3 (300 MW+), and early-stage greenfield sites across the U.S.
- Michael Picchi Appointed Chief Financial Officer – Soluna appointed Michael Picchi as CFO, effective April 1, 2026.
First Quarter Financial Highlights:
- Revenue increased sequentially for the fourth consecutive quarter from $9.2 million to $9.4 million. On a year-over-year basis, revenue increased 58%, driven by Dorothy 2 energization, Dorothy 1A revenue growth, and Kati 1 going live, partially offset by hashprice compression at Dorothy 1B.
- Net loss increased ($10.5 million) YoY to ($17.9 million), driven by higher equity compensation, interest, and financing expenses, partially offset by site-level operating improvement. EBITDA loss declined ($9.4 million) YoY to ($12.4 million) on the same drivers. After adjusting for stock-based compensation, SEPA commitment fees, and minor asset sale gains, Adjusted EBITDA loss fell modestly ($444 thousand) YoY to ($2.1 million).
- Revenue for the three months increased by 2% or $186 thousand from Q4 2025 to Q1 2026 – driven by Project Kati 1 going live in February and new Dorothy 1A customer additions, partially offset by an -18% hashprice decline ($42 to $34) on proprietary mining and profit share revenue.
- Q1 2026 Gross Profit increased sequentially from $1.8 million to $1.9 million, driven by higher hosting revenue, partially offset by higher site-level depreciation as Kati 1 assets were placed in service.
- Dorothy 1A, Dorothy 2, and Sophie delivered strong gross margins of 36%, 41%, and 37%, respectively.
- Dorothy 1B generated a (15%) gross margin loss, driven by hashprice compression.
- Kati 1 reported a $262 thousand loss in its first quarter of operations, reflecting ramp-up costs ahead of meaningful revenue.
(Dollars in thousands) |
| Three Months Ended | ||||||
|
| 2026 |
| 2025 | ||||
|
|
|
|
| ||||
Net loss |
| $ | (17,902 | ) |
| $ | (7,354 | ) |
Interest expense |
|
| 1,481 |
|
|
| 838 |
|
Income tax benefit |
|
| (624 | ) |
|
| (425 | ) |
Depreciation and amortization |
|
| 4,603 |
|
|
| 3,879 |
|
EBITDA |
|
| (12,442 | ) |
|
| (3,062 | ) |
|
|
|
|
| ||||
Adjustments: Non-cash items |
|
|
|
| ||||
|
|
|
|
| ||||
Stock-based compensation costs |
|
| 10,222 |
|
|
| 1,847 |
|
Gain on sale of fixed assets |
|
| (32 | ) |
|
| - |
|
Right of first refusal amortization gain |
|
| (90 | ) |
|
| - |
|
SEPA commitment fee |
|
| 250 |
|
|
| - |
|
Fair value adjustment loss |
|
| - |
|
|
| 118 |
|
Gain on debt extinguishment and revaluation, net |
|
| - |
|
|
| (551 | ) |
Adjusted EBITDA |
| $ | (2,092 | ) |
| $ | (1,648 | ) |
- Net loss for Q1 2026 increased $1 million sequentially to $17.9 million. However, adjusted EBITDA loss improved from Q4 2025 to Q1 2026 to ($2.1 million) – increased by $1.9M (47%) sequentially, driven by lower compensation and professional fee expenses alongside stable gross profit from Dorothy 2 and Kati 1.
- Adjusted EBITDA loss declined from Q1 2025 to Q1 2026 by ($444 thousand) – primarily due to non-recurring costs associated with legal and transaction costs from the Briscoe acquisition.
Q1 2026 Revenue & Cost of Revenue by Project Site
|
| Soluna Digital |
|
|
|
| ||||||||||||||||||
(Dollars in thousands) |
| Project Dorothy 1B |
| Project Dorothy 1A |
| Project Dorothy 2 |
| Project Sophie |
| Project Kati 1 |
| Other |
| Total | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Cryptocurrency mining revenue |
| $ | 2,169 |
|
| $ | - |
| $ | - |
| $ | - |
| $ | - |
|
| $ | - |
|
| $ | 2,169 |
Data hosting revenue |
|
| 11 |
|
|
| 2,044 |
|
| 3,171 |
|
| 1,237 |
|
| 225 |
|
|
| - |
|
|
| 6,688 |
Demand response services |
|
| 144 |
|
|
| 130 |
|
| 263 |
|
| - |
|
| - |
|
|
| - |
|
|
| 537 |
Total revenue |
|
| 2,324 |
|
|
| 2,174 |
|
| 3,434 |
|
| 1,237 |
|
| 225 |
|
|
| - |
|
|
| 9,394 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Cost of cryptocurrency mining, exclusive of depreciation |
|
| 1,658 |
|
|
| - |
|
| - |
|
| - |
|
| - |
|
|
| - |
|
|
| 1,658 |
Cost of data hosting revenue, exclusive of depreciation |
|
| 4 |
|
|
| 1,107 |
|
| 1,423 |
|
| 581 |
|
| 394 |
|
|
| 110 |
|
|
| 3,619 |
Cost of cryptocurrency mining revenue- depreciation |
|
| 1,011 |
|
|
| - |
|
| - |
|
| - |
|
| - |
|
|
| - |
|
|
| 1,011 |
Cost of data hosting revenue- depreciation |
|
| - |
|
|
| 288 |
|
| 606 |
|
| 204 |
|
| 93 |
|
|
| - |
|
|
| 1,191 |
Total cost of revenue |
|
| 2,673 |
|
|
| 1,395 |
|
| 2,029 |
|
| 785 |
|
| 487 |
|
|
| 110 |
|
|
| 7,479 |
Gross profit |
| $ | (349 | ) |
| $ | 779 |
| $ | 1,405 |
| $ | 452 |
| $ | (262 | ) |
| $ | (110 | ) |
| $ | 1,915 |
Q1 2025 Revenue & Cost of Revenue by Project Site
|
| Soluna Digital |
| Soluna Cloud |
|
| ||||||||||||||||
(Dollars in thousands) |
| Project Dorothy 1B |
| Project Dorothy 1A |
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