Inve US ▾
SLSLNH

Soluna (SLNH) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Information Technology· Aug 13, 2026

Source: earnings call transcript

Executive summary

Soluna Q2 FY26 — AI Campus Development and Pipeline Expansion

Soluna is rapidly transforming into an AI infrastructure company, leveraging its unique behind-the-meter power access to develop large-scale AI campuses. The quarter saw significant progress in asset consolidation, including full ownership of Project Dorothy 1 and the acquisition of Briscoe Wind Farm, alongside substantial advancements in the Kati 2 and Dorothy 3 AI projects. The company is strategically positioning itself to meet the surging demand for AI-ready capacity, with a focus on project-level financing and expanding its renewable power pipeline.

Highlights

5

  • Revenue grew 145% year-over-year to $15.1 million, marking the fifth consecutive quarter of sequential growth.

  • Secured 100% ownership of Project Dorothy 1 and acquired the 150 MW Briscoe Wind Farm for $53 million, strengthening AI campus development.

  • Renewable power pipeline expanded 47% to over 6.3 gigawatts, with 300+ MW added from existing portfolio sites.

  • Ended the quarter with $113 million in cash, a current ratio of 2.1x, and working capital of $69.2 million, reflecting materially improved liquidity.

  • Adjusted EBITDA loss improved 25% sequentially to $1.6 million, and Kati 1 achieved its first positive gross profit.

Concerns

4

  • Gross profit compressed 35% year-over-year to $766,000, impacted by new site costs and $1.5 million in Briscoe Wind Farm repairs.

  • Net loss increased to $22.6 million from $7.8 million in Q2 2025, driven by non-cash and financing items.

  • Proprietary Bitcoin mining revenue declined $1.1 million (40%) due to a 34% drop in hash price and capacity conversion.

  • General and administrative expenses increased $9.8 million year-over-year, largely due to $7.5 million in non-cash stock compensation.

Guidance & targets

CategoryTargetConfidence
Operating capacity
206 megawatts
medium materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Data Hosting
Largest contributor to gross profit.
———$1.9M gross profit
Kati 1 Project
Achieved its first positive gross profit, moving from capital consumption to cash generation.
———Positive gross profit
Briscoe Wind Farm
Revenue net of intercompany elimination. Gross loss due to $1.5 million in turbine repairs and maintenance in its first quarter under ownership.
$366,000——($787,000) gross loss
Proprietary Bitcoin Mining
Revenue declined $1.1 million due to a 34% decline in hash price and deliberate conversion of Dorothy 1B capacity to hosting.
—declined 40%—Loss

Deals & partnerships

Briscoe Wind Farm Acquisition of a 150-megawatt wind farm. $53 million

On April 1, we closed the acquisition of the 150-megawatt Briscoe Wind Farm.

Spring Lane Capital Acquisition of Spring Lane Capital's interest in Dorothy 1A.

On April 15, we acquired Spring Lane Capital's interest in Dorothy 1A.

Navitas Acquisition of Navitas' interest in Dorothy 1B.

On May 19, we acquired Navitas' interest in Dorothy 1B.

Metrobloks Definitive joint venture for Kati 2 development.

Kati 2 reached a definitive joint venture with Metrobloks, completed design development and signed a tenant letter of intent.

potential tenant Signed a letter of intent for AI-ready capacity at Kati 2.

On the tenant, we signed a letter of intent, and commercial terms and lease negotiations are currently underway while we finalize the design.

not named Secured a definitive land purchase agreement for 397 acres to support Dorothy 3 build-out.

Dorothy 3 secured a definitive land purchase agreement and advanced utility coordination.

natural gas pipeline operator Executed an access agreement for a natural gas pipeline to improve resiliency and provide firming energy.

We executed a gas pipeline access agreement to improve resiliency.

Risks & headwinds

Execution capability for AI infrastructure transformation Next 18 months

Unquantified.

Mitigation:Hiring key talent (e.g., Ryan Carver as Chief Development Officer), building execution teams, expanding expertise, and focusing on partnerships.

Access to capital for large AI builds Ongoing

Unquantified.

Mitigation:Project-level debt strategy (70-80% loan-to-cost) collateralized by contracted tenant cash flows, seeking equity partners for the remaining 20-30%.

Long-lead equipment availability and supply chain delays Ongoing for construction projects

Unquantified.

Mitigation:Proactive preordering of key electrical equipment, quantifying needs based on campus master plans.

Texas ERCOT audit on data center interconnection queue Ongoing, audit process just launched

Targets new studied loads (roughly 474 GW pending requests, 90% data centers). Soluna's direct exposure limited (146 MW already energized).

Mitigation:Soluna's model (behind-the-meter, flexible load, minimal water, no costly transmission upgrades) aligns with state's screening. Cooperation with PUCT and ERCOT. Seen as a potential tailwind for operators with live capacity.

Gross profit compression due to new site costs and maintenance Q2 FY26

Gross profit compressed 35% YoY to $766,000. Briscoe Wind Farm posted $787,000 gross loss due to $1.5 million in repairs.

Mitigation:Front-loading repair work at Briscoe to ensure long-term operational efficiency; new sites like Kati 1 are expected to transition to cash generation.

Decline in proprietary Bitcoin mining revenue Q2 FY26

Revenue declined $1.1 million (40%) due to a 34% drop in hash price (from $51 to $34).

Mitigation:Deliberate conversion of Dorothy 1B capacity from mining to hosting, shifting focus to AI.

What to watch in Q3 FY26

Kati 2 definitive lease agreement

Next quarter
Current Letter of Intent signed, commercial terms and lease negotiations underway.
Target Definitive agreement announced.

Why it matters

Securing a definitive lease is crucial for validating the AI campus strategy and unlocking project-level financing.

We'll update the market when we have a definitive agreement to announce.

Find out whether SLNH delivers this. Inve re-checks your case every morning.

Q&A highlights

Seeking an update on negotiations for the Kati 2 tenant LOI and expected timeline for a definitive lease agreement.

Management stated that detailed negotiations are underway, but they cannot provide specific timing. They emphasized that the company is executing like an AI infrastructure company, building teams, designing sites, ordering long-lead equipment, and preparing capital formation in parallel with negotiations.

“So while we can't speak to timing, what we can say is that we're now executing like an infrastructure -- AI infrastructure company.”

asked by Michael Colonnese · answered by John Belizaire

2 min read 6 chapters

Detailed narrative

Strategic Shift to AI Infrastructure

Soluna is pivoting to become a leading AI infrastructure provider, emphasizing its unique access to behind-the-meter power. The company's strategy focuses on building data centers directly on renewable generation sites, bypassing grid queues and securing long-term, cost-effective energy, which is framed as the primary constraint in the AI era. This approach allows Soluna to own both generation and compute assets, offering a distinct advantage in securing hyperscaler and neocloud customers.

Asset Consolidation and Ownership

The quarter was marked by significant asset consolidation, including the acquisition of the 150-megawatt Briscoe Wind Farm for $53 million on April 1. Soluna also gained 100% ownership of Project Dorothy 1 (50 megawatts) by acquiring Spring Lane Capital's and Navitas' interests. These moves strengthen the company's control over its power sources and facilitate the development of new AI campuses like Dorothy 3.

AI Campus Development Progress

Soluna made substantial progress on its two primary AI campuses. Kati 2, projected to be over 350 megawatts at full build, advanced through design development, secured a definitive joint venture with Metrobloks, and signed a letter of intent with a potential tenant. Dorothy 3, targeting 300+ megawatts of AI capacity, secured a definitive land purchase agreement for 397 acres and initiated preliminary master planning and long-lead equipment procurement.

Pipeline Expansion and AI Designation

The company's renewable power pipeline grew 47% to over 6.3 gigawatts. Notably, 300+ megawatts were added from expanded term sheets at existing sites (Rosa, Hedy, Ellen, Fei), which are now designated for AI workloads. This expansion leverages prior development work and exclusivity agreements, demonstrating a strategic focus on converting existing power assets into AI-ready capacity.

Capital Formation and Project Financing Strategy

Soluna raised $159.4 million in Q2 and an additional $23.6 million post-quarter end, significantly boosting liquidity to $113 million. The company also simplified its capital structure by retiring all Series B preferred stock. For future large AI builds, Soluna plans to use project-level debt (70-80% loan-to-cost) collateralized by contracted tenant cash flows, with the remaining equity funded by Soluna or third-party partners.

Response to Texas ERCOT Audit

Soluna addressed Governor Abbott's directive for an ERCOT data center audit, stating its direct exposure is limited as much of its capacity is already energized. The company's behind-the-meter model, which emphasizes flexible, interruptible load and minimal grid impact, aligns with the state's screening criteria. Management views the audit as a potential tailwind for operators with existing, live capacity.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.