Soluna Holdings (NASDAQ: SLNH) reported Q2 2026 revenue of $15.1 million, up 145% from $6.2 million a year earlier, while basic and diluted loss per share was $0.18 versus $0.93. The absolute net loss nevertheless widened to $22.6 million from $7.8 million, as additional Briscoe costs, higher depreciation and a $4.2 million debt-extinguishment loss outweighed the expanded revenue base. Adjusted EBITDA loss improved sequentially to $1.6 million from $2.1 million.
Core earnings results
Data hosting was the primary source of revenue growth, supported by Dorothy 2, the Kati 1A ramp and Briscoe’s first quarter under Soluna’s ownership. Effective in Q2, Soluna began reporting pass-through electricity costs on a gross basis, adding $4.4 million to both revenue and cost of revenue without changing gross profit or net loss; excluding this accounting change, revenue increased 73% year over year.
Costs rose faster than underlying revenue. Briscoe maintenance expenses, Kati 1 ramp costs and depreciation recognized before projects reached their full revenue contribution reduced gross profit and margin.
| Metric | Q2 2026 | Q2 2025 | Year-over-year change |
|---|---|---|---|
| Revenue | $15.060 million | $6.158 million | +145% |
| Gross profit | $0.766 million | About $1.188 million | About -36% |
| Gross margin | About 5.1% | About 19.3% | -14.2 percentage points |
| Operating loss | $(16.943) million | $(6.624) million | Loss widened 156% |
| Net loss | $(22.624) million | $(7.780) million | Loss widened 191% |
| Net loss attributable to Soluna | $(20.709) million | $(7.382) million | Loss widened 181% |
| Basic and diluted loss per share | $(0.18) | $(0.93) | Loss per share narrowed by $0.75 |
The narrower per-share loss contrasts with the substantially larger net loss. Weighted-average shares outstanding increased to 131.0 million from 11.1 million, making the EPS comparison less representative of the deterioration in aggregate profitability.
Business and segment performance
Data hosting more than quadrupled and became Soluna’s dominant revenue stream, while cryptocurrency mining revenue declined amid hashprice compression. Wind generation contributed for the first time following the Briscoe acquisition.
| Revenue source | Q2 2026 | Q2 2025 | Year-over-year change |
|---|---|---|---|
| Data hosting | $12.653 million | $3.136 million | +304% |
| Cryptocurrency mining | $1.720 million | $2.861 million | -40% |
| Wind energy generation | $0.366 million | — | New contribution |
| Demand response services | $0.321 million | $0.161 million | +99% |
Kati 1 completed 48 MW of construction on April 1 and generated $2.3 million of site revenue, up 938% sequentially. That figure included $1.5 million from the electricity chargeback presentation change. The site recorded its first positive gross profit of $82,000.
Dorothy 1A generated $2.9 million of revenue, up 31% sequentially as the Blockware and Canaan fleets ramped. Its gross profit reached $795,000, representing a 28% gross margin—the highest among Soluna’s disclosed sites.
Soluna also completed the consolidation of Project Dorothy 1 during the quarter. It acquired the 150 MW Briscoe Wind Farm, Spring Lane Capital’s 85.4% Class B interest in Dorothy 1A and Navitas’ 49% interest in Dorothy 1B, giving the company ownership of both generation and computing infrastructure across the 50 MW project.
The 6.3 GW pipeline remains far larger than the operating footprint
As of August 1, Soluna operated approximately 192 MW across three fully energized sites, with another 14 MW under construction at Kati 1. Its approximately 6.3 GW pipeline included 1.6 GW in planning and development and 4.5 GW still in assessment with power partners, meaning most proposed capacity had not yet reached construction or operations.
The company added 583 MW of behind-the-meter capacity intended for AI and high-performance computing across Projects Hedy, Ellen and Fei. Dorothy 3 increased to 300 MW, while the Kati 2 joint venture with Metrobloks targets an initial 100 MW of critical IT capacity and a possible additional 250 MW in a second phase.
Despite the larger AI pipeline, Soluna reported no high-performance computing service revenue in Q2. The financial contribution from these projects therefore depends on further progress in power agreements, planning, land acquisition, financing and construction.
Profitability, cash flow and balance sheet
Gross profit fell to $766,000 from $1.9 million in Q1 even as revenue increased 60% sequentially. Soluna attributed the decline mainly to $1.5 million of Briscoe maintenance costs, Kati 1 ramp expenses and additional depreciation ahead of full revenue generation.
Adjusted EBITDA loss improved by 25% sequentially to $1.6 million. Lower legal and consulting expenses following the Briscoe closing, reduced compensation costs and continued gross profit from Dorothy 2 helped offset the weaker consolidated gross profit result.
For the first six months of 2026—not Q2 alone—operating activities used $11.6 million of cash, compared with $1.3 million in the prior-year period. Investing activities used $65.1 million, including $51.4 million for the Briscoe acquisition and $9.5 million of property and equipment purchases. Financing activities supplied $119.1 million, led by $113.5 million raised through the at-the-market program.
Soluna ended June with $113.4 million of unrestricted cash and $33.1 million of total debt, of which $30.1 million was current. After quarter-end, it raised another approximately $23.6 million through its ATM program. Common shares outstanding increased from 102.5 million at December 31, 2025, to 225.8 million at June 30, 2026, and reached approximately 244.6 million by the 10-Q filing date.
Recent insider transactions
The supplied insider data identifies a CFO purchase in May and a later officer sale in June. These transactions are presented without inferring a broader management view.
| Date | Insider | Role | Transaction | Price per share | Reported value |
|---|---|---|---|---|---|
| June 15, 2026 | Jessica L. Thomas | Officer | Sale | $1.70 | $8,225 |
| May 21, 2026 | Michael D. Picchi | Chief Financial Officer | Purchase | $1.63 | $163,200 |
The June 1 insider records in the supplied data were zero-price stock awards rather than open-market purchases or sales.
Risks investors should monitor
- Low consolidated gross margin: Reported gross margin was approximately 5.1%, with Briscoe maintenance, Kati 1 ramp costs and depreciation limiting the benefit from higher revenue.
- Pipeline execution: Most of the 6.3 GW pipeline remains in planning, development or assessment, and Q2 generated no high-performance computing service revenue.
- Exposure to cryptocurrency economics: Hashprice compression contributed to a 40% decline in cryptocurrency mining revenue, leaving results sensitive to mining conditions even as hosting expands.
- Cash consumption and dilution: First-half operating and investing cash outflows were funded largely through equity issuance, and the outstanding share count increased substantially during and after the period.
- Near-term debt obligations: Of Soluna’s $33.1 million in total debt at quarter-end, $30.1 million was classified as current, although the company also held $113.4 million of unrestricted cash.
Summary
Soluna’s Q2 revenue base expanded substantially as data hosting ramped and Briscoe began contributing, but the accounting presentation change and sharply higher operating costs meant that growth did not translate into improved GAAP profitability. The next operating tests are whether Briscoe and Kati margins normalize, whether the AI pipeline advances from planning into revenue-producing capacity, and how much additional external capital that expansion requires.
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