Soluna (SLNH) Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Revenue: $15.1 million, up 145% year-over-year; fifth consecutive quarter of sequential growth. Excluding a presentation change in accounting for electricity costs, revenue grew 73% year-over-year.

Gross Profit: $766,000, down 35% year-over-year due to new site costs and maintenance expenses from the Briscoe Wind Farm.

Net Loss: $22.6 million, compared to $7.8 million in Q2 2025, primarily due to non-cash expenses and financing items.

Adjusted EBITDA: Loss of $1.6 million, an improvement of 25% sequentially.

Liquidity: Cash position strengthened to $113 million, with a current ratio of 2.1x.

Total Assets: Grew 54% to $293.5 million, driven by acquisitions and construction activities.

2Strategic Updates and Business Highlights

Capacity Management: 192 megawatts of capacity under management, expected to increase to 206 megawatts by summer. The renewable power pipeline grew 47% to over 6.3 gigawatts.

Acquisitions: Completed the acquisition of the 150-megawatt Briscoe Wind Farm for $53 million, marking the first direct ownership of a renewable generation asset.

Project Developments: Significant progress on AI campuses Kati 2 and Dorothy 3, with ongoing negotiations for tenant leases and construction preparations.

New Leadership: Ryan Carver appointed as Chief Development Officer, bringing extensive experience in AI data center development.

3Forward Guidance and Outlook

Project Execution: Focus on completing Kati 1 and advancing Kati 2 and Dorothy 3 towards tenant readiness. Anticipated completion of Kati 1’s final phase and formal marketing of Dorothy 3 in the fall.

Capital Formation: Plans to fund future AI projects predominantly through project-level debt, targeting 70-80% financing against contracted tenant cash flows.

Market Positioning: Positioned to benefit from the demand for AI infrastructure and renewable energy solutions, with a focus on rapid deployment and sustainability.

4Bad News, Challenges, or Points of Concern

Increased Net Loss: The significant increase in net loss raises concerns about the sustainability of operations amidst rising costs and non-cash expenses.

Operational Risks: Execution capability is identified as a key risk, particularly in scaling operations and managing project timelines effectively.

Market Pressures: The Texas audit of data centers in the ERCOT interconnection queue could pose challenges for future capacity expansions, although Soluna believes it is well-positioned due to its existing energized capacity.

Proprietary Mining Decline: Proprietary Bitcoin mining revenue declined by 40%, reflecting market pressures and a strategic shift towards hosting.

5Notable Q&A Insights

Tenant Negotiations: Progress on the letter of intent for Kati 2 is underway, with detailed negotiations ongoing. Formal marketing for Dorothy 3 is expected to begin in the fall.

Power Availability: Soluna's existing energized capacity allows for immediate power sourcing for new projects, mitigating concerns around ERCOT's audit.

Capital Allocation: The company is focused on incremental growth, leveraging successful project execution to access further capital and partnerships.

Supply Chain Risks: Ryan Carver emphasized proactive measures to mitigate equipment availability risks by ordering long-lead items early in the process. Overall, Soluna demonstrated strong revenue growth and strategic advancements in Q2 2026, while also facing challenges related to net losses and operational execution. The company remains optimistic about its positioning in the AI and renewable energy markets.