Soluna Holdings Q2 revenue up 145% to $15.1 million; acquires Briscoe wind farm
Soluna Holdings reported Q2 2026 revenue of $15.1 million, up 145% YoY, driven by gross accounting changes and new acquisitions. Net loss widened to $22.6 million due to non-cash items, but adjusted EBITDA loss narrowed 25% sequentially. The company acquired Briscoe Wind Farm and consolidated Project Dorothy 1, expanding its pipeline to 6.3 GW. Liquidity strengthened with $113.4 million in cash and the retirement of Series B preferred stock.
*this image is generated using AI for illustrative purposes only.
Soluna Holdings, Inc. (NASDAQ: SLNH) reported second-quarter 2026 revenue of $15.1 million, marking a 145% year-over-year increase and a 60% sequential rise compared to the first quarter. This result represents the fifth consecutive quarter of sequential revenue growth for the green data center developer. The growth was significantly influenced by an accounting presentation change effective Q2, where pass-through electricity costs are now presented on a gross basis, adding $4.4 million to both revenue and cost of revenue. Excluding this presentation change, revenue grew 73% year-over-year.
The net loss for the quarter widened to ($22.6 million) from ($17.9 million) in Q1. This increase was primarily driven by a $4.2 million non-recurring loss on debt extinguishment, $9.4 million in non-cash stock-based compensation, and higher interest expense of $3.2 million. Despite the wider GAAP loss, operational efficiency improved, with adjusted EBITDA loss narrowing by 25% sequentially to ($1.6 million) from ($2.1 million). This marks a 76% improvement from the $6.4 million adjusted EBITDA loss recorded in Q3 2025.
What the Numbers Show
Gross profit contracted sharply to $766 thousand from $1.9 million in Q1. This compression was driven by $1.5 million in Briscoe wind farm maintenance costs and ramp-up expenses at Project Kati 1. However, underlying segment performance showed strength: Data Hosting delivered $1.9 million of segment gross profit, while Project Kati 1 turned its first positive gross profit. Proprietary mining posted a loss due to a 34% decline in hash price, falling from roughly $51 to $34.
| Metric | Q2 2026 | Q1 2026 | Change |
|---|---|---|---|
| Revenue | $15.1 million | $9.4 million* | +60% Seq |
| Gross Profit | $0.8 million | $1.9 million | -59% Seq |
| Net Loss | ($22.6 million) | ($17.9 million) | Wider |
| Adj. EBITDA Loss | ($1.6 million) | ($2.1 million) | -25% Seq |
*Q1 revenue derived from reported 60% sequential growth.
Operational Highlights and Pipeline Expansion
Soluna achieved full vertical integration at its flagship Project Dorothy 1 campus during the quarter. Key acquisitions included:
- Briscoe Wind Farm: Acquired 150 MW capacity for a $53.0 million base price, marking the company’s first direct ownership of a renewable generation asset.
- Dorothy 1A & 1B: Acquired remaining minority interests for a combined ~$25.3 million, securing full ownership of generation and compute across all 50 MW of Project Dorothy 1.
The company’s development pipeline expanded to approximately 6.3 GW, up 47% from earlier in the year. Notable additions include:
- Project Kati 2: Signed a joint venture with Metrobloks for a 100 MW Phase I data center, with plans to expand to 350 MW. A tenant letter of intent has been signed.
- AI Capacity: Added over 583 MW of behind-the-meter power aimed at AI and high-performance computing (HPC) workloads across Projects Hedy, Ellen, and Fei.
- Project Rosa: Increased capacity designation from 187 MW to 242 MW.
Management emphasized that the company currently has 192 megawatts of capacity under management, expecting this to increase to 206 megawatts by summer. The company also addressed recent regulatory audits in Texas, noting that its behind-the-meter model and existing energized capacity position it favorably compared to new studied loads in the interconnection queue.
Balance Sheet Position and Capital Formation
As of June 30, 2026, Soluna held $113.4 million in unrestricted cash against $33.1 million in total debt. Working capital was positive at $69.2 million, and the current ratio improved to 2.1 times from 1.7 times in Q1. Total assets grew 54% to $293.5 million from $187.9 million at year-end 2025, reflecting significant capital deployment into property, plant, and equipment.
During Q2, the company raised $159.4 million through various instruments, including an ATM program, debt financing, and warrant exercises. This capital was deployed to acquire Briscoe, buy out joint venture partners, and repay debt. Notably, the company retired all Series B preferred stock, converting 62,500 shares into common equity and paying out accumulated dividends. Following the quarter-end, Soluna raised an additional $23.6 million through its ATM program.
Looking forward, management outlined plans to fund large AI buildouts predominantly through project-level debt, targeting 70% to 80% loan-to-cost ratios collateralized by contracted tenant cash flows.
How will the shift to presenting pass-through electricity costs on a gross basis impact Soluna's reported revenue growth metrics and investor perception in future quarters?
What specific strategies will Soluna employ to mitigate the volatility in proprietary mining margins given the recent 34% decline in hash prices?
Can Soluna successfully secure project-level debt at 70-80% loan-to-cost ratios for its AI buildouts without significantly increasing its overall leverage or cost of capital?
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