Soluna Holdings, Inc. reported third‑quarter 2025 results that showed total revenue of $8.42 million, a 12% year‑over‑year increase driven by a 37% sequential rise in both its cryptocurrency mining and data‑hosting segments. Mining revenue reached $2.76 million while hosting revenue climbed to $5.25 million, underscoring the company’s continued focus on renewable‑powered compute services.
Gross profit margin expanded to 28% from 19% in Q2 2025, reflecting stronger pricing power and a higher mix of high‑margin hosting contracts. Operating loss narrowed to $7.78 million from $9.02 million in the same quarter last year, a result of improved operational leverage and cost discipline despite higher staffing and professional‑fee expenses.
Net loss widened to $23.96 million, largely due to fair‑value adjustments on warrants of approximately $22 million and financing expenses of about $4.7 million. These one‑time charges offset the benefits of margin expansion and operating‑loss improvement, illustrating the company’s ongoing volatility in earnings quality.
Cash and restricted cash rose to a record $60.46 million, a boost that strengthens Soluna’s liquidity position but does not eliminate its going‑concern status. The company’s Altman Z‑Score of –6.19 signals a high bankruptcy risk, and management has highlighted the need for continued capital discipline while pursuing growth in the AI market.
CEO John Belizaire emphasized that the quarter “represents a new Soluna,” noting that the company has proven its business model, secured world‑class capital partners, and positioned itself to accelerate growth in AI and high‑performance computing. He added that the strengthened capital structure will provide the flexibility needed to expand the hosting portfolio and capture emerging demand.
Investors responded positively to the results, citing the strong sequential revenue growth, margin expansion, and record cash reserves as evidence of improved execution. The company’s strategic pivot toward AI, coupled with its renewable‑energy focus, offers a compelling tailwind, while the ongoing going‑concern status and significant one‑time charges remain key headwinds.
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