37% Increase in Revenue Sequentially, Gross Profit Increased to 28%, Cash Swells to a Record $60 Million

ALBANY, N.Y.–(BUSINESS WIRE)–$SLNH #SLNH–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 third quarter ended September 30, 2025.

“This is a new Soluna,” said John Belizaire, CEO of Soluna Holdings. “What we achieved in the third quarter reflects the exceptional execution of our small but mighty team. We’ve proven that our business model works and scales, strengthened our position as a leading Bitcoin hosting provider, and attracted new, world-class capital partners.”

Belizaire continued: “We’ve also strengthened our capital structure to be more flexible and growth-oriented. With this foundation, we now have more firepower to accelerate the growth of our existing business and expand into the fast-growing AI market.”

Q3 2025 Operational and Corporate Highlights:

$100 Million Credit Facility from Generate Capital – Soluna announced the close of a scalable credit facility up to $100 million from Generate Capital. The initial $12.6 million draw in September funded refinancing and construction of active data center projects, with additional capital support for Soluna’s 1 gigawatt and expanding pipeline.
$20M Secured to Launch Project Kati 1 and Broke Ground – Spring Lane Capital expands its investment in Soluna to fund the first 35 MW of Project Kati, a wind-powered data center site in Texas. Construction began on September 18, 2025.
Settlement with NYDIG – As disclosed in our Form 8-K filed September 30, 2025, Soluna reached a settlement with NYDIG, resolving all outstanding matters and clearing the path for future growth and partnership.
Regained Nasdaq Compliance – Soluna has regained compliance with Nasdaq’s continued listing requirements, strengthening our position on the public markets, preserving access to the capital markets, and liquidity for our shareholders.
Surpassed 4 EH/s of Hash Rate Under Management – With the commissioning of Dorothy 2 and fleet upgrades deployed across all sites, Soluna surpassed 4 EH/s of hash rate under management.
Surpassed One Gigawatt of Clean Computing Projects – With the addition of Project Gladys (150 MW under development, wind) and Project Fei (100 MW under development, solar), Soluna’s now exceeds 1 GW of renewable-powered computing in operation, construction, and development. This milestone reflects the scalability of Soluna’s behind-the-meter model and marks a major step toward our 2.8 GW long-term roadmap.
Expanded Partnership with Galaxy Digital – Galaxy is expected to deploy 48 MW at Project Kati 1, bringing the site’s total to 83 MW. This marks Soluna’s largest hosting deployment to date and deepens our institutional partnerships.
Dorothy 2 Reaches Full Capacity – A 30 MW expansion with a top-tier Bitcoin miner marked the third deployment with this long-standing customer, bringing Project Dorothy 2 to full hosting capacity. Learn more about this milestone here.
Strong Capital Formation in Q3 – Soluna strengthened its balance sheet with successful capital raises totaling approximately $64 million gross through a combination of equity raises, warrant exercises, project-level equity, and debt.

Third Quarter Finance and Operations Highlights:

Record Level Cash Reserves Strengthen Balance Sheet – Cash increased by $45 million to $60.5 million, bolstering our reserves for future investment opportunities.
Revenue for the three months increased by 37% or $2.3 million from Q2 2025 to Q3 2025 – driven by new Dorothy 2 customers. Other sites maintained marginal growth in hosting revenue, except for Dorothy 1B, which remained steady.
Q3 2025 Gross profit increased to 28%, compared to 19% in Q2 2025 – reflecting strong cost discipline and margin stability, in addition to $400k in one-time electricity credits.
- Dorothy 1A and Sophie delivered strong gross margins of 43.6% and 68.4%, respectively.
- Dorothy 1B began a site-level miner fleet upgrade to help improve gross profit.
- Dorothy 2 commenced customer deployments in Q2, with labor costs ramping ahead of revenue, consistent with planned early-stage operations. Q3 saw a major increase in revenue (+$2M) from Q2.
Net loss for the three months increased from Q3 2024 to Q3 2025 by ($17.7 million) – driven by the fair value adjustment of exercised warrants, related to July equity offering, ($22.0 million), and other financing expenses ($4.7 million), offset by the loss on SLC equipment loan and gain on NYDIG debt agreement reported as a net $10.1 million Gain on debt extinguishment and revaluation.
Adjusted EBITDA decreased from Q3 2024 to Q3 2025 to ($6.4M) – decreased by $2.9 million from Q3 2024, due to compensation related to 2024 of $1.3 million, and approximately $1.0 million increase in professional fees in Q3 2025.
Adjusted EBITDA increased from Q3 2024 to Q3 2025 – excluding special charges from Cloudco HPE costs, bonus, and Preferred B consent fees and broker fees – by $0.1 million to a positive adjusted EBITDA of $0.1 million, compared to Q3 2024.
Q3 2025 capital raised over $64 million gross– from a mix of public market and project-level equity and debt sources to fund our growth, development, and operations.

Q3 2025 Revenue & Cost of Revenue by Project Site

	Soluna Digital
(Dollars in thousands)	Project Dorothy 1B		Project Dorothy 1A		Project Dorothy 2		Project Sophie		Other		Soluna Digital Subtotal

Cryptocurrency mining revenue	$	2,769	$	–	$	–	$	–	$	–	$	2,769
Data hosting revenue		–		1,650		2,203		1,404		–		5,257
Demand response services		–		–		–		–		389		389
Total revenue		2,769		1,650		2,203		1,404		389		8,415

Cost of cryptocurrency mining, exclusive of depreciation	$	1,708	$	–	$	–	$	–	$	–	$	1,708
Cost of data hosting revenue, exclusive of depreciation		–		669		1,558		345		88		2,660
Cost of cryptocurrency mining revenue-depreciation		1,053		–		–		–		–		1,053
Cost of data hosting revenue- depreciation		–		261		306		98		–		665
Total cost of revenue	$	2,761	$	930	$	1,864	$	443	$	88	$	6,086

Gross Profit	$	8	$	720	$	339	$	961	$	301	$	2,329
Gross Profit Margin %		0%		44%		15%		68%		77%		28%

Q3 2024 Revenue & Cost of Revenue by Project Site

	Soluna Digital												Soluna Cloud		Total
(Dollars in thousands)	Project Dorothy 1B		Project Dorothy 1A		Project Dorothy 2		Project Sophie		Other		Soluna Digital Subtotal		Project Ada		Total

Cryptocurrency mining revenue	$	2,811	$	–	$	–	$	–	$	–	$	2,811	$	–	$	2,811
Data hosting revenue		–		3,515		–		756		–		4,271		–		4,271
Demand response services		–		–		–		–		–		–		–		–
High-performance computing services		–		–		–		–		443		443		–		443
Total revenue		2,811		3,515		–		756		443		7,525		–		7,525

Cost of cryptocurrency mining, exclusive of depreciation	$	1,963	$	–	$	–	$	–	$	–	$	1,963	$	–	$	1,963
Cost of data hosting revenue, exclusive of depreciation		–		2,025		–		521		9		2,555		–		2,555
Cost of high-performance computing service revenue		–		–		–		–		–		–		2,859		2,859
Cost of cryptocurrency mining revenue-depreciation		1,076		284		–		152		–		1,512		–		1,512
Cost of data hosting revenue- depreciation						–
Total cost of revenue	$	3,039	$	2,309	$	–	$	673	$	9	$	6,030	$	2,859	$	8,889

Gross Profit	$	(228)	$	1,206	$	–	$	83	$	434	$	1,495	$	(2,859)	$	(1,364)

The audited financial statements and Annual Report on Form 10-K for the year ended December 31, 2024, filed with the U.S. Securities and Exchange Commission (“SEC”) on March 31, 2025, are available online.

Our current Investor Presentation can be found here.

Our 2025 Earnings Power Presentation can be found here.

Soluna’s glossary of terms can be found 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 Company plans and objectives, including the deployments at Project Kati 1, (ii) statements of future economic performance, and (iii) 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, provision for credit losses, loss on sale of fixed assets and credit on equipment deposit, provision for credit losses, impairment on fixed assets, fair value adjustment loss (gain), fair value on placement agent warrants financing fee, and loss (gain) on debt extinguishment and revaluation, net. 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 annual report on Form 10-K for the year ended December 31, 2024, 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.

Soluna Holdings, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
As of September 30, 2025 (Unaudited) and December 31, 2024

(Dollars in thousands, except per share)	September 30, 2025			December 31, 2024
Assets
Current Assets:
Cash	$	51,371		$	7,843
Restricted cash		3,630			1,150
Accounts receivable, net (allowance for expected credit losses of $244 at September 30, 2025 and December 31, 2024)		4,408			2,693
Prepaid expenses and other current assets		3,522			1,781
Loan commitment assets		3,474			–
Equipment held for sale		–			28
Total Current Assets		66,405			13,495
Restricted cash, noncurrent		5,460			1,460
Other assets		1,090			2,724
Deposits and credits on equipment		813			5,145
Property, plant and equipment, net		63,999			47,283
Intangible assets, net		10,593			17,620
Operating lease right-of-use assets		3,675			313
Total Assets	$	152,035		$	88,040

Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable	$	4,860		$	2,840
Accrued liabilities		12,426			6,785
Accrued interest payable		342			2,275
Contract liability		19,348			20,015
Current portion of debt		9,999			14,444
Income tax payable		71			37
Warrant liability		7,225			–
Customer deposits		1,823			1,416
Operating lease liability		96			61
Total Current Liabilities		56,190			47,873

Other liabilities		2,001			235
Long-term debt		13,254			7,061
Operating lease liability		3,583			252
Deferred tax liability, net		3,542			5,257
Total Liabilities		78,570			60,678

Commitments and Contingencies (Note 10)

Stockholders’ Equity:
9.0% Series A Cumulative Perpetual Preferred Stock, par value $0.001 per share, $25.00 liquidation preference; authorized 6,040,000; 4,928,545 shares issued and outstanding as of September 30, 2025 and 4,953,545 December 31, 2024		5			5
Series B Preferred Stock, par value $0.0001 per share, authorized 187,500; 62,500 shares issued and outstanding as of September 30, 2025 and December 31, 2024		—			—
Common stock, par value $0.001 per share, authorized 75,000,000; 64,092,531 shares issued and 64,051,790 shares outstanding as of September 30, 2025 and 10,647,761 shares issued and 10,607,020 shares outstanding as of December 31, 2024		64			11
Additional paid-in capital		381,399			315,607
Accumulated deficit		(353,198	)		(314,304	)
Common stock in treasury, at cost, 40,741 shares at September 30, 2025 and December 31, 2024		(13,798	)		(13,798	)
Total Soluna Holdings, Inc. Stockholders’ Equity (Deficit)		14,472			(12,479	)
Non-Controlling Interest		58,993			39,841
Total Stockholders’ Equity		73,465			27,362
Total Liabilities and Stockholders’ Equity	$	152,035		$	88,040

Soluna Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations (Unaudited)

For the Three and Nine Months Ended September 30, 2025 and 2024

(Dollars in thousands, except per share)

Three Months Ended

Nine Months Ended

September 30,

2025

2024

2025

2024

Cryptocurrency mining revenue

2,769

2,811

8,630

13,691

Data hosting revenue

5,257

4,271

10,795

14,446

Demand response service revenue

389

443

1,057

1,612

High-performance computing service revenue

–

Total revenue

8,415

7,525

20,510

29,749

Operating costs:

Cost of cryptocurrency mining revenue, exclusive of depreciation

1,708

1,963

5,428

5,687

Cost of data hosting revenue, exclusive of depreciation

2,660

2,555

5,605

6,982

Cost of high-performance computing services

–

2,859

Cost of cryptocurrency mining revenue- depreciation

1,053

1,068

3,200

3,220

Cost of data hosting revenue- depreciation

665

444

1,578

1,320

Total costs of revenue

6,086

8,889

15,818

20,068

Operating expenses:

General and administrative expenses, exclusive of depreciation and amortization

7,708

5,248

19,053

14,625

Depreciation and amortization associated with general and administrative expenses

2,401

2,404

7,207

7,209

Total general and administrative expenses

10,109

7,652

26,260

21,834

Impairment on fixed assets

–

130

Operating loss

(7,780

)

(9,016

)

(21,580

)

(12,283

)

Interest expense

(1,212

)

(821

)

(3,246

)

(1,694

)

Gain (loss) on debt extinguishment and revaluation, net

10,107

875

10,658

(1,888

)

Loss on sale of fixed assets and credit on equipment deposit

(780

)

–

(802

)

(21

)

Fair value adjustment (loss) gain

(22,047

)

328

(22,165

)

(5,607

)

Other financing expense

(4,746

)

–

(5,203

)

–

Other income (expense), net

)

(280

)

(32

)

Loss before income taxes

(26,453

)

(8,640

)

(42,618

)

(21,525

)

Income tax benefit, net

666

547

1,697

1,743

Net loss

(25,787

)

(8,093

)

(40,921

)

(19,782

)

(Less) Net loss (income) attributable to non-controlling interest

1,831

903

2,027

(3,535

)

Net loss attributable to Soluna Holdings, Inc.

(23,956

)

(7,190

)

(38,894

)

(23,317

)

Basic and Diluted loss per common share:

Basic & Diluted loss per share

(1.14

)

(1.56

)

(3.29

)

(7.15

)

Weighted average shares outstanding (Basic and Diluted)

26,983,023

6,388,335

15,683,072

4,320,546

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 Nine Months Ended September 30, 2025 and 2024

	Nine Months Ended September 30,
(Dollars in thousands)	2025			2024
Operating Activities
Net loss	$	(40,921	)	$	(19,782	)

Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense		4,866			4,634
Amortization expense		7,119			7,116
Stock-based compensation		5,671			3,286
Deferred income taxes		(1,716	)		(1,806	)
Impairment on fixed assets		12			130
Provision for credit losses		–			611
Amortization of operating lease asset		79			139
(Gain) loss on debt extinguishment and revaluation, net		(10,658	)		1,888
Amortization of deferred financing costs and discount on notes		561			179
Fair value adjustments, including SEPA		22,165			5,607
Fair value on placement warrant financing cost		146			–
Loss on sale of fixed assets and credit on equipment deposit		802			21
Changes in operating assets and liabilities:
Accounts receivable		(1,715	)		536
Prepaid expenses and other current assets		(1,741	)		(3,429	)
Other long-term assets		1,608			(5,771	)
Accounts payable		2,020			1,159
Contract liability		(667	)		–
Operating lease liabilities		(75	)		(141	)
Other liabilities and customer deposits		2,173			(811	)
Accrued liabilities and interest payable		6,792			3,022
Net cash used in operating activities		(3,479	)		(3,412	)
Investing Activities
Purchases of property, plant, and equipment		(17,008	)		(3,712	)
Purchases of intangible assets		(92	)		(95	)
Proceeds from sale of property, plant, and equipment		–			215
Deposits on equipment		(1,028	)		(4,099	)
Net cash used in investing activities		(18,128	)		(7,691	)
Financing Activities
Proceeds from common stock warrant exercises		9,455			2,330
Proceeds from sale of common stock on SEPA		6,176			–
Proceeds from notes		18,434			14,470
Proceeds from sale of common stock on ATM		22,961			–
Proceeds from July equity issuance		4,509			–
Costs associated with July equity issuance		(145	)		–
Payments on notes and deferred financing costs		(6,938	)		(2,261	)
Payments on ATM		(162	)		–
Contributions from non-controlling interest		22,078			5,098
Distributions to non-controlling interest		(4,753	)		(6,694	)
Net cash provided by financing activities		71,615			12,943

Increase in cash & restricted cash		50,008			1,840
Cash & restricted cash – beginning of period		10,453			10,367
Cash & restricted cash – end of period	$	60,461		$	12,207

Supplemental Disclosure of Cash Flow Information
Interest paid on debt		1,081			218
Fair value consideration for Green Cloud issuance of shares		810			–
Noncash financing cost accrual		647			–
Noncash deferred financing cost accrual		1,078			–
Warrant consideration in relation to Generate Common Warrant		2,635			–
Warrant consideration in relation to convertible notes and revaluation of warrant liability		–			5,606
Notes converted to common stock		–			5,877
Noncash membership distribution accrual		–			741
Warrant consideration in relation to Soluna Cloud		–			1,440
Noncash non-controlling interest contributions		2,675			250
Noncash activity right-of-use assets obtained in exchange for lease obligations		3,441			–

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Segment Information

The following table details revenue, cost of revenues, and other operating costs for the Company’s reportable segments for three months ended September 30, 2025 and 2024, and reconciles to net income (loss) on the consolidated statements of operations:

For the three months ended September 30, 2025

Cryptocurrency

Mining

Data Center

Hosting

High- Performance

Computing Services

Total

Segment Revenue: Revenue from external customers

2,769

5,257

–

8,026

Reconciliation of revenue

Demand response service revenue (a)

389

Total consolidated revenue

8,415

Less: Segment cost of revenue

Utility costs

1,237

1,308

–

2,545

Wages, benefits, and employee related costs

167

665

–

832

Facilities and Equipment costs

243

556

–

799

Cost of revenue- depreciation

1,053

665

–

1,718

Other cost of revenue*

123

330

–

453

Total segment cost of revenue

2,823

3,524

–

6,347

General and administrative expenses

874

–

877

Impairment on fixed assets

–

Segment operating income (loss)

(57

)

859

–

802

For the three months ended September 30, 2024

Cryptocurrency

Mining

Data Center

Hosting

High- Performance

Computing Services

Total

Segment Revenue: Revenue from external customers

2,811

4,271

–

7,082

Reconciliation of revenue

Demand response service revenue (a)

–

443

7,525

Less: Segment cost of revenue

Utility costs

1,395

1,523

–

2,918

Wages, benefits, and employee related costs

212

516

–

728

Facilities and Equipment costs

268

389

2,859

3,516

Cost of revenue- depreciation

1,068

444

–

1,512

Other cost of revenue*

183

221

–

404

Total segment cost of revenue

3,126

3,093

2,859

9,078

General and administrative expenses

804

944

Impairment on fixed assets

–

Segment operating income (loss)

(372

)

374

(2,942

)

(2,940

)

(a)		Demand response service revenue is included as a reconciling item of total revenue and not included as part of segment gross profit or loss.

*		Other cost of revenue includes insurance, outside service costs and margins, and general costs.

Contacts

Investor Relations

Soluna Holdings, Inc.

[email protected]

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