Soluna Reports Q2'26 Results; Revenue Grows 145% Year-Over-Year

About this update from Soluna Holdings, Inc.

Soluna Holdings, Inc. (“Soluna” or the “Company”) (NASDAQ: SLNH), a developer of green data centers for intensive computing applications, including Bitcoin mining and AI, announced its financial results for the second quarter ended June 30, 2026. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260813372334/en/ Soluna Holdings, Inc. (Nasdaq: SLNH) Reports Q2 2026 Results; Revenue Grows 145% Year-Over-Year "This is Soluna's fifth consecutive quarter of sequential revenue growth, and a 145% year-over-year increase that reflects the operating leverage we are building across the portfolio," said John Belizaire, CEO of Soluna Holdings. "Kati 1 delivered its first positive gross profit, and Dorothy 1A had its strongest quarter to date. That operating base is the foundation for the much larger AI build-out now taking shape across our pipeline. And with Ryan Carver joining as Chief Development Officer, we've added hyperscale AI delivery experience to lead that build." "This quarter, we expanded our development pipeline to approximately 6.3 gigawatts, with major capacity growth across our AI sites," Belizaire continued. "The Dorothy 3 campus grew to 300 megawatts, and our joint venture with Metrobloks gives Kati 2 a defined path from an initial 100 megawatts of critical IT capacity toward 350 megawatts. We also dedicated three additional development sites to AI capacity, with Projects Hedy, Ellen, and Fei advancing through power term sheets to a combined 583 megawatts of behind-the-meter power aimed at AI and HPC workloads. With Briscoe and full ownership of Dorothy 1 in hand, we control the generation-to-compute chain at our flagship campus, and we are moving quickly to convert existing sites to AI and advance Dorothy 3." Recent Operational and Corporate Highlights: Completed Vertical Integration at Project Dorothy - Consolidated ownership of Project Dorothy 1: Acquired 150 MW Briscoe Wind Farm on April 1 for a $53.0 million base price. Acquired Spring Lane Capital's 85.4% Class B interest in Dorothy 1A on April 15 for $16.5 million. Acquired Navitas' 49% interest in Dorothy 1B on May 19 for approximately $8.8 million. Soluna now owns both the generation and the compute across all 50 MW of Project Dorothy 1. Signed Kati 2 AI Joint Venture with Metrobloks - On June 3, 2026, Soluna entered into a joint venture agreement with Metrobloks to develop Project Kati 2. Phase I is a 100 MW critical IT data center development, with Phase II adding a further 250 MW. Soluna holds all Class A interests and serves as manager of the joint venture. Project Kati 1 Reached 48 MW, and Delivered First Gross Profit - Kati 1 completed 48 MW of construction on April 1, filled by Galaxy Digital. Site revenue grew 938% sequentially to $2.3 million 1 and the site delivered its first positive gross profit of $82 thousand. Project Dorothy 1A Delivered Its Strongest Quarter — Dorothy 1A revenue grew 31% sequentially to $2.9 million on the Blockware and Canaan fleet ramps, producing $795 thousand of gross profit at a 28% gross margin - the highest of any site in the portfolio. Development Pipeline of ~6.3 GW — As of August 1, 2026, Soluna operated approximately 192 MW across three fully energized sites, with an additional 14 MW under construction at Project Kati 1. Beyond operating and construction-stage capacity, the Company's development pipeline includes approximately 1.6 GW in planning and development, with PPA negotiations, ERCOT planning, AI feasibility, and land acquisition underway, and approximately 4.5 GW in assessment with power partners. Major Expansions of Development Project Capacity and Transition to AI — During the quarter, Soluna's development pipeline expanded across several sites. New term sheets increased, and Soluna redesignated power for AI workloads at Project Rosa (187 MW to 242 MW), Project Hedy (120 MW to 198 MW), Project Ellen (100 MW to 145 MW), and Project Fei (120 MW to 240 MW). In addition, Soluna allocated Project Grace, its 2 MW AI/HPC technical validation effort with the Siemens PTI team, to Dorothy 3 capacity. Added to the Russell 3000 and Russell 2000 Value indices - in the latest reconstitution, with new sell-side research coverage initiated on the company in recent weeks. Appointed Ryan Carver as Chief Development Officer - On July 16, 2026, Soluna appointed Ryan Carver as Chief Development Officer. Second Quarter Financial Highlights: Effective Q2, pass-through electricity costs are presented on a gross basis in revenue and cost of revenue. This presentation change adds $4.4M to each, with no effect on gross profit, operating loss, or net loss. Revenue grew for a fifth consecutive quarter to $15.1 million, up 60% sequentially compared to Q1 and 145% year over year (73% excluding the presentation change), driven by Dorothy 2's contributions, the Kati 1A ramp, and Briscoe's first quarter under ownership, partially offset by hashprice compression. Gross profit was $766 thousand in Q2, compared to $1.9M in Q1, primarily impacted by $1.5M of Briscoe maintenance costs, Kati 1 ramp costs, and depreciation coming online ahead of full revenue contribution. Net loss was ($22.6M), compared with ($17.9M) in Q1, driven primarily by a $4.2M loss on debt extinguishment and the new Briscoe overhead and depreciation base, partially offset by lower SG&A. Adjusted EBITDA Loss of ($1.6M) improved 25% compared with ($2.1M) in Q1, driven by lower legal and consulting fees following the close of the Briscoe acquisition and lower compensation, alongside continued gross-profit contribution from Dorothy 2. Ended the quarter with $113.4M of unrestricted cash and $33.1M of total debt. Subsequent to quarter-end, the Company raised approximately $23.6 million under its at-the-market (ATM) program, with approximately 244,590,575 shares outstanding as of the filing date of the Company's Quarterly Report on Form 10-Q. Business Update Call and Webcast: Management will host a webcast today, August 13, 2026, at 5:00 p.m. ET to review results and provide a business update. The live webcast and accompanying presentation will be available in the Investor Relations section of solunacomputing.com, where a replay will also be available following the call The unaudited financial statements and Quarterly Report on Form 10-Q for the three months ended June 30, 2026, filed with the U.S. Securities and Exchange Commission (“SEC”) on August 13, 2026, are available online . Our current Investor Presentation is available here . Soluna’s glossary of terms is available here . Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident," and similar statements. Other examples of forward-looking statements may include, but are not limited to, (i) statements of the Company's plans and objectives, including with respect to our development pipeline, the joint venture with Metrobloks at Project Kati 2, the development at Project Dorothy, (ii) statements of future economic performance, (iii) statements regarding financial projections of the Company, and (iv) statements of assumptions underlying other statements about the Company or its business. Soluna may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Statements that are not historical facts, including but not limited to statements about Soluna’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, further information regarding which is included in the Company's filings with the SEC. All information provided in this press release is as of the date of the press release, and Soluna undertakes no duty to update such information, except as required under applicable law. Non-GAAP Measures In addition to figures prepared in accordance with generally accepted accounting principles (“GAAP”), Soluna from time to time may present alternative non-GAAP performance measures, e.g., EBITDA, adjusted EBITDA, adjusted net profit/loss, adjusted earnings per share, free cash flow, both on a company basis and on a project-level basis, among others. EBITDA is defined as earnings before interest, taxes, and depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted for stock-based compensation costs, loss on sale of fixed assets and deposits on equipment; ROFR amortization gain; accretion of asset retirement obligation; gain on transformer settlement; SEPA commitment fee; fair value adjustment (loss) gain; impairment on fixed assets and intangibles; and loss (gain) on debt extinguishment and revaluation. Project-level measures may not take into account a full allocation of corporate expenses. These measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. Alternative performance measures are not subject to GAAP or any other generally accepted accounting principles. Other companies may define these terms in different ways. See our quarterly report on Form 10-Q for the quarter ended June 30, 2026, for an explanation of how management uses these measures in evaluating its operations. Investors should review the non-GAAP reconciliations provided above and not rely on any single financial measure to evaluate the Company’s business. About Soluna Holdings, Inc. (Nasdaq: SLNH) Soluna is on a mission to make renewable energy a global superpower using computing as a catalyst. The company designs, develops, and operates digital infrastructure that transforms surplus renewable energy into global computing resources. Soluna’s pioneering data centers are strategically co-located with wind, solar, or hydroelectric power plants to support high-performance computing applications, including Bitcoin Mining, Generative AI, and other compute-intensive applications. Soluna’s proprietary software MaestroOS(™) helps energize a greener grid while delivering cost-effective and sustainable computing solutions and superior returns. To learn more, visit solunacomputing.com and follow us on: LinkedIn: https://www.linkedin.com/company/solunaholdings/ X (formerly Twitter): x.com/solunaholdings YouTube: youtube.com/c/solunacomputing Newsletter: bit.ly/solunasubscribe Resource Center: solunacomputing.com/resources Soluna regularly posts important information on its website and encourages investors and potential investors to consult the Soluna investor relations and investor resources sections of its website regularly. 1 Includes $1.5 million attributed to reclassification of revenue from net to gross of electricity chargebacks. Soluna Holdings, Inc. and Subsidiaries Condensed Consolidated Balance Sheets A s of June 30, 2026 (Unaudited) and December 31, 2025   (Dollars in thousands, except per share) June 30, 2026   December 31, 2025 Assets       Current Assets:       Cash $ 113,364     $ 76,423   Restricted cash   10,005       4,500   Accounts receivable, net (allowance for expected credit losses of $0 at June 30, 2026 and $244 at December 31, 2025)   6,737       5,522   Prepaid expenses and other current assets   4,513       2,664   Loan commitment assets   —       3,018   Total Current Assets   134,619       92,127   Restricted cash, noncurrent   7,920       7,920   Other assets   973       978   Deposits and credits on equipment   208       1,377   Property, plant and equipment, net   137,801       74,783   Intangible assets, net   6,068       8,261   Operating lease right-of-use assets   4,152       252   Financing lease right-of-use assets   1,773       2,246   Total Assets $ 293,514     $ 187,944           Liabilities and Equity       Current Liabilities:       Accounts payable $ 3,785     $ 4,859   Accrued liabilities   7,549       13,182   Accrued interest payable   59       303   Contract termination liability   19,348       19,348   Current portion of debt   30,103       8,858   Income tax payable   147       123   Deferred revenue   558       518   Customer deposits- current   3,020       1,913   Operating lease liability   108       65   Financing lease liability   23       20   Other current liabilities   742       —   Total Current Liabilities   65,442       49,189           Other liabilities   414       743   Customer deposits- long-term   1,503       2533   Long-term debt   3,016       17899   Asset retirement obligation   3,664       —   Operating lease liability   4,276       187   Financing lease liability   1,769       2,236   Deferred tax liability, net   1,732       2,911   Total Liabilities   81,816       75,698           Commitments and Contingencies (Note 12)               Mezzanine Equity:       Placement agent warrants   1,313       1,313           Equity:       9.0% Series A Cumulative Perpetual Preferred Stock, par value $0.001 per share, $25.00 liquidation preference; authorized 6,040,000; 4,920,045 and 4,928,545 shares issued and outstanding as of June 30, 2026 and December 31, 2025   5       5   Series B Preferred Stock, par value $0.0001 per share, authorized 187,500; 0 shares issued and outstanding as of June 30, 2026 and 62,500 shares issued and outstanding at December 31, 2025   —       —   Common stock, par value $0.001 per share, authorized 375,000,000; 225,986,784 shares issued and 225,821,479 shares outstanding as of June 30, 2026 and 102,617,684 shares issued and 102,531,089 shares outstanding as of December 31, 2025   226       103   Additional paid-in capital   575,594       435,030   Accumulated deficit   (405,890 )     (367,715 ) Common stock in treasury, at cost, 165,305 shares at June 30, 2026 and 86,595 shares December 31, 2025   (14,004 )     (13,873 ) Total Soluna Holdings, Inc. Stockholders’ Equity (Deficit)   155,931       53,550   Non-Controlling Interest   54,454       57383   Total Equity   210,385       110,933   Total Liabilities, Mezzanine Equity, and Equity $ 293,514     $ 187,944     The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. Soluna Holdings, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) For the Three and Six Months Ended June 30, 2026 and 2025   (Dollars in thousands, except per share) Three Months Ended June 30,   Six Months Ended J une 30,     2026       2025       2026       2025                   Cryptocurrency mining revenue $ 1,720     $ 2,861     $ 3,889     $ 5,860   Data hosting revenue   12,653       3,136       19,341       5,538   Wind energy generation revenue   366       —       366       —   Demand response service revenue   321       161       858       668   High-performance computing service revenue   —       —       —       28   Total revenue   15,060       6,158       24,454       12,094   Operating costs:               Cost of cryptocurrency mining revenue, exclusive of depreciation   958       1,767       2,616       3,721   Cost of data hosting revenue, exclusive of depreciation   7,672       1,617       11,291       2,945   Cost of wind energy generation revenue, exclusive of depreciation   2,253       —       2,253       —   Cost of high-performance computing services   —       —       —       7   Cost of cryptocurrency mining revenue- depreciation   992       1,074       2,047       2,147   Cost of data hosting revenue- depreciation   1,366       512       2,513       913   Cost of wind energy generation revenue- depreciation and accretion expense   1,053       —       1,053       —   Total costs of revenue   14,294       4,970       21,773       9,733   Operating expenses:               General and administrative expenses, exclusive of depreciation and amortization   15,239       5,397       31,379       11,344   Depreciation and amortization associated with general and administrative expenses   2,400       2,403       4,801       4,807   Total general and administrative expenses   17,639       7,800       36,180       16,151   Impairment on intangibles   70       —       70       —   Impairment on fixed assets   —       12       —       12   Operating loss   (16,943 )     (6,624 )     (33,569 )     (13,802 ) Interest expense   (3,167 )     (1,196 )     (4,648 )     (2,034 ) (Loss) gain on debt extinguishment and revaluation, net   (4,197 )     —       (4,197 )     551   Loss on sale of fixed assets and deposits on equipment   (585 )     (22 )     (553 )     (22 ) Fair value adjustment gain (loss)   246       —       246       (118 ) Other financing expense   (5 )     (255 )     (569 )     (456 ) Other income (expense), net   1,480       (291 )     1593       (286 ) Loss before income taxes   (23,171 )     (8,388 )     (41,697 )     (16,167 ) Income tax benefit, net   547       608       1,171       1,033   Net loss   (22,624 )     (7,780 )     (40,526 )     (15,134 ) (Less) Net loss (income) attributable to non-controlling interest   1,915       398       2,351       196   Net loss attributable to Soluna Holdings, Inc. $ (20,709 )   $ (7,382 )   $ (38,175 )   $ (14,938 )                 Basic and Diluted loss per common share:               Basic & Diluted loss per share $ (0.18 )   $ (0.93 )   $ (0.41 )   $ (2.10 )                 Weighted average shares outstanding (Basic and Diluted)   130,975,761       11,146,141       107,668,028       9,939,450     The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. Soluna Holdings, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) For the Six Months Ended June 30, 2026 and 2025           Six Months Ended June 30, (Dollars in thousands)     2026       2025   Operating Activities       Net loss $ (40,526 )   $ (15,134 )         Adjustments to reconcile net loss to net cash used in operating activities:       Depreciation expense   5,494       3,121   Amortization expense   4,841       4,746   Stock-based compensation   19,702       3,789   Deferred income taxes   (1,179 )     (1,051 ) Right of first refusal amortization gain   (135 )     —   Impairment on fixed assets and intangibles   70       12   Amortization of operating and finance lease asset   155       30   Loss (gain) on debt extinguishment and revaluation, net   4,197       (551 ) Amortization of deferred financing costs and discount on notes   2,209       338   Fair value adjustments, including SEPA   (246 )     118   SEPA commitment cost   250       —   Accretion of asset retirement obligation   79       —   Loss on sale of fixed assets and deposit on equipment, net   553       22   Changes in operating assets and liabilities:       Accounts receivable   277       44   Prepaid expenses and other current assets   (1,847 )     (455 ) Other long-term assets   —       1,607   Accounts payable   (2,528 )     1,102   Contract termination liability   —       (667 ) Deferred revenue   (249 )     —   Operating lease liabilities   123       (30 ) Other liabilities and customer deposits   914       644   Accrued liabilities and interest payable   (3,709 )     1,042   Net cash used in operating activities   (11,555 )     (1,273 ) Investing Activities       Purchases of property, plant, and equipment   (9,483 )     (7,790 ) Purchases of intangible assets   (68 )     (83 ) Proceeds from sale of property, plant, and equipment   32       —   Briscoe acquisition purchase, net of cash acquired   (51,415 )     —   Deposits on equipment   (4,130 )     (476 ) Net cash used in investing activities   (65,064 )     (8,349 ) Financing Activities       Proceeds from common stock warrant exercises   2,553       —   Proceeds from sale of common stock on SEPA   18,928       2,005   Proceeds from notes   24,500       5,269   Proceeds from sale of common stock on ATM   113,465       2,046   Payments on notes and deferred financing costs   (18,026 )     (3,275 ) Payments on Series B dividends   (2,058 )     —   Costs on treasury stock   (131 )     —   Payments on financing lease liabilities   (113 )     —   Purchase of membership interest of Dorothy 1A and Dorothy 1B   (25,266 )     —   Contributions from non-controlling interest   10,918       11,852   Distributions to non-controlling interest   (5,705 )     (3,575 ) Net cash provided by financing activities   119,065       14,322           (Decrease) increase in cash & restricted cash   42,446       4,700   Cash & restricted cash – beginning of period   88,843       10,453   Cash & restricted cash – end of period $ 131,289     $ 15,153           Supplemental Disclosure of Cash Flow Information       Interest paid on debt   2,248       685   Fair value consideration for Green Cloud issuance of shares   —       810   Construction in progress included in accounts payable and accrued liabilities   2,743       —   Warrant consideration in relation to Generate and Yorkville Warrants   3,249       —   Noncash membership distribution accrual   —       323   Warrant adjustment   682       —   Noncash activity right-of-use assets adjustment   430       —     The accompanying notes are an integral part of these unaudited condensed consolidated financial statements Reconciliations of EBITDA and Adjusted EBITDA to net loss, the most comparable GAAP financial metric, for each three-month period from January 1, 2026 through June 30, 2026 are presented in the table below: (Dollars in thousands) Three months ended March 31, 2026   Three months ended June 30, 2026         Net loss $ (17,902 )   $ (22,624 ) Interest expense   1,481       3,167   Income tax benefit   (624 )     (547 ) Depreciation and amortization   4,603       5,732   EBITDA   (12,442 )     (14,272 )         Adjustments: Non-cash or Non-recurring items               Stock-based compensation costs   10,222       9,480   (Gain) loss on sale of fixed assets and deposits on equipment   (32 )     585   Right of first refusal amortization gain   (90 )     (45 ) Accretion of asset retirement obligation   —       79   Gain on transformer settlement   —       (1,409 ) SEPA commitment fee   250       —   Fair value adjustment, net   —       (246 ) Impairment on fixed assets and intangibles   —       70   Gain on debt extinguishment and revaluation, net   —       4,197   Adjusted EBITDA $ (2,092 )   $ (1,561 )   View source version on businesswire.com: https://www.businesswire.com/news/home/20260813372334/en/

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