Soluna (SLNHP) Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Revenue: $15.1 million, a 145% increase year-over-year. Adjusted for a change in accounting presentation, revenue growth was 73%.

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

Net Loss: $22.6 million, compared to $7.8 million in Q2 2025, primarily driven by non-cash items and increased interest expenses.

Adjusted EBITDA: Loss of $1.6 million, an improvement from a $2.1 million loss in Q1 2026.

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

2Strategic Updates and Business Highlights

Capacity Growth: Increased capacity under management to 192 megawatts, expected to reach 206 megawatts by summer.

Pipeline Expansion: Renewable power pipeline grew by 47% to over 6.3 gigawatts, with significant developments at Kati 2 and Dorothy 3 campuses.

Acquisitions: Completed the acquisition of the 150-megawatt Briscoe Wind Farm, enhancing control over renewable energy sources.

Operational Milestones: Kati 1 achieved its first positive gross profit; significant progress on Kati 2 and Dorothy 3 with ongoing tenant negotiations.

3Forward Guidance and Outlook

Future Developments: Focus on completing Kati 1, advancing Kati 2 to construction documents, and marketing Dorothy 3 to potential tenants.

Capital Formation: Plans to fund future AI developments through project-level financing and strategic partnerships.

Market Positioning: Expectation that the audit process in Texas will favor operators with existing capacity, positioning Soluna advantageously.

4Bad News, Challenges, or Points of Concern

Increased Net Loss: The significant rise in net loss raises concerns about operational efficiency and cost management.

Dependence on Power Availability: Ongoing audits in Texas could impact future developments and interconnection approvals.

Market Competition: Intense competition for power resources and data center capacity may pose risks to securing future contracts.

5Notable Q&A Insights

Tenant Negotiations: Progress on lease negotiations for Kati 2 is ongoing, with a focus on executing detailed agreements.

Power Availability: Soluna's existing energized capacity is expected to support the upcoming developments, mitigating risks associated with the ERCOT audit.

Customer Interest: Strong inbound interest for both Kati 2 and Dorothy 3, with plans to formally market Dorothy 3 in the fall.

Execution Risks: Management highlighted execution capability as a primary risk, emphasizing the importance of building a strong team and infrastructure to support growth. Overall, Soluna demonstrated significant revenue growth and strategic advancements in Q2 2026, while also facing challenges related to net losses and competitive pressures in the market. The company remains focused on leveraging its unique position in the renewable energy space to drive future growth.