RIOT — Riot Platforms, Inc.

Riot Platforms Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Total Revenue: $167 million for Q1 2026.
• GAAP Net Loss: $500 million ($1.44 per diluted share).
• Adjusted EBITDA Loss: $311 million, primarily due to non-cash adjustments related to Bitcoin holdings ($326.7 million) and depreciation ($97.7 million).
• Bitcoin Production: 1,473 Bitcoin mined, with a deployed hash rate of 42.5 exahash.
• Cost of Power: Net cost of power reduced to $0.03 per kilowatt hour, lowering Bitcoin mining costs to $44,629 per Bitcoin (26% reduction from Q4 2025).
• Data Center Revenue: $33.2 million, including $900,000 from operating lease revenue and $32.2 million from tenant fit-out services.

2. Strategic Updates and Business Highlights

• AMD Expansion: AMD exercised a 25-megawatt expansion option, increasing total contracted capacity at the Rockdale facility to 50 megawatts. The total revenue from this lease is projected at $636 million over ten years.
• Corsicana Development: Progressing on a new core and shell building with a capacity of 168 megawatts, consolidating previous plans. The total planned capacity at Corsicana is now 756 megawatts.
• Capital Discipline: Growth funded entirely through operating cash flow and disciplined Bitcoin sales, with no equity issuance in the quarter.
• Engineering Segment: Strong backlog of $193.4 million, primarily driven by data center sector demand, enhancing procurement capabilities.

3. Forward Guidance and Outlook

• Revenue Projections: Anticipated annualized operating lease revenue run rate of $37.8 million by year-end 2026, scaling to $55.6 million by the end of 2027.
• Tenant Engagement: Active discussions for additional leases at both Rockdale and Corsicana, with a focus on high-quality tenants.
• Power Portfolio Expansion: Aggressive pursuit of growth across four avenues: greenfield/brownfield development, self-generation, M&A, and strategic partnerships.

4. Challenges and Points of Concern

• Net Losses: Significant GAAP net loss and adjusted EBITDA loss indicate ongoing financial pressure, primarily due to non-cash accounting adjustments.
• Market Volatility: The reliance on Bitcoin sales for financing poses risks amid fluctuating cryptocurrency markets.
• Leasing Uncertainty: While there is substantial interest in leasing, the unpredictable nature of the leasing process remains a concern, with potential delays in finalizing agreements.

5. Notable Q&A Insights

• AMD Lease Structure: The expansion of the AMD lease was facilitated by lower build-out costs due to prior preparations, despite a longer timeline for the 25-megawatt expansion.
• Demand Signals: Demand for data center capacity continues to outpace supply, driven by AI commercialization, although individual buyer urgency varies.
• Leadership Impact: Recent changes in leadership have not affected lease discussions, and the team is well-equipped to manage concurrent projects at both Rockdale and Corsicana.
• Financing Strategy: Future financing will involve a mix of project financing and capital markets, with a focus on maintaining a strong balance sheet to ensure flexibility.

Overall, Riot Platforms is navigating a transformative phase with significant infrastructure developments and strategic partnerships, despite facing financial losses and market uncertainties.