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    SLNH
    Earnings call· Jun 2026(Q2 FY26)

    Soluna Holdings Q2 FY26 earnings call SLNH

    Aug 13, 2026 Source

    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

    1
    CategoryTargetConfidence
    Operating capacity
    206 megawatts
    medium materiality
    High

    Segment performance

    4
    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

    Operational metrics

    52
    Revenue (excluding presentation change)
    73%YoY
    Q2 FY26

    Revenue growth excluding the reclassification of pass-through electricity costs.

    Revenue (excluding presentation change)
    13%sequential
    Q2 FY26

    Revenue growth excluding the reclassification of pass-through electricity costs.

    Adjusted EBITDA
    ($1.6M)improved 25% sequentially
    Q2 FY26

    Adjusted EBITDA loss showing sequential improvement.

    Cash and investments balance
    $113M
    Q2 FY26

    Cash available for project development and operations.

    Current ratio
    2.1ximproved from 1.7x at Q1
    Q2 FY26

    Improved liquidity metric.

    Working capital
    $69.2M
    Q2 FY26

    Positive working capital.

    Total assets
    $293.5Mgrew 54%
    Q2 FY26

    Total assets growth.

    Total debt
    $33.1M
    Q2 FY26

    Total debt across the business.

    Long-term debt
    $3.0Mfell 81%
    Q2 FY26

    Decrease due to reclassification, not repayment.

    Current liabilities
    $65.4Mincreased 26%
    Q2 FY26

    Increase due to reclassification of debt.

    Stock-based compensation
    $9.4M
    Q2 FY26

    Reflecting overlapping 2025 and 2026 equity awards.

    Interest expense
    $3.2Mup from $1.2M a year ago
    Q2 FY26

    Increased interest expense.

    Loss on debt extinguishment
    $4.2M
    Q2 FY26

    Loss incurred from debt extinguishment events.

    General and administrative expenses increase
    $9.8MYoY
    Q2 FY26

    Increase driven by stock compensation and operational costs.

    Capital raised
    $159M
    Q2 FY26

    Total capital raised during the quarter.

    Capital raised (post-quarter end)
    $23.6M
    post Q2 FY26

    Additional capital raised after the quarter end.

    Capital deployed
    $159M
    Q2 FY26

    Total capital deployed during the quarter.

    Cash added to balance sheet
    $45.3M
    Q2 FY26

    Net cash added to the balance sheet from capital activities.

    Series B preferred stock conversion
    6,510,416 common shares
    Q2 FY26

    Conversion of all Series B preferred stock.

    Series B accumulated dividends paid
    $2.1M
    Q2 FY26

    Dividends paid upon Series B preferred stock conversion.

    Pass-through electricity costs (presentation change impact)
    $4.4M
    Q2 FY26

    Impact of accounting change on reported revenue and cost of revenue.

    Hash price
    $34declined 34% from $51
    Q2 FY26

    Decline in Bitcoin hash price impacting proprietary mining revenue.

    Project-level debt target for AI builds
    70% to 80%
    future

    Target leverage for financing large AI build-outs.

    Project-level equity target for AI builds
    20% to 30%
    future

    Target equity contribution for financing large AI build-outs.

    Illustrative 100 MW AI build-out cost
    $1.2B to $1.3B
    future

    Estimated cost for a 100-megawatt AI data center build-out.

    Illustrative 100 MW AI build-out stabilized annual net operating income
    $180M
    future

    Rough estimate of stabilized annual NOI for a 100 MW AI build-out.

    Operating capacity
    192 megawatts
    Q2 FY26

    Current operating capacity under management.

    Capacity under construction
    14 megawatts
    Q2 FY26

    Capacity currently under construction.

    AI campuses in development capacity
    650 megawatts
    Q2 FY26

    Total capacity for the two main AI campuses in development.

    Renewable power pipeline
    6.3 gigawattsgrew 47%
    Q2 FY26

    Total renewable power pipeline.

    Pipeline in planning and development
    1.6 gigawatts
    Q2 FY26

    Portion of pipeline in active planning and development.

    Pipeline in assessment
    4.5 gigawatts
    Q2 FY26

    Portion of pipeline under assessment with power partners.

    Las Majadas substation expansion capacity
    100 megawatts
    future

    Additional capacity from substation expansion to support Kati 2.

    Kati 2 full build capacity
    350+ megawatts
    future

    Expected capacity of Kati 2 at full build.

    Kati 2 Phase 1 capacity
    100+ megawatts
    future

    Capacity of Kati 2 Phase 1.

    Kati 2 Phase 2 capacity
    250 megawatts
    future

    Capacity of Kati 2 Phase 2.

    Dorothy 3 AI capacity
    300+ megawatts
    future

    Targeted AI capacity for Dorothy 3.

    AI data center capacity in development
    1.6 gigawatts
    Q2 FY26

    Total AI data center capacity currently in development.

    Briscoe Wind Farm capacity
    150 megawatts
    Q2 FY26

    Capacity of the acquired Briscoe Wind Farm.

    Dorothy 1 capacity
    50 megawatts
    Q2 FY26

    Total capacity of Project Dorothy 1.

    Kati 1 capacity
    83 megawatts
    Q2 FY26

    Total capacity of Kati 1 campus.

    Kati 1A capacity
    48 megawatts
    Q2 FY26

    Capacity of Kati 1A (Galaxy Digital portion).

    Kati 1B Phase 1 capacity
    12 megawatts
    Q2 FY26

    Capacity of Kati 1B Phase 1 (Cormint containers).

    Kati 1B Phase 2 capacity
    9 megawatts
    Q2 FY26

    Capacity of Kati 1B Phase 2 (Soluna-designed data centers).

    Kati 1B Phase 3 capacity
    14 megawatts
    Q2 FY26

    Capacity of Kati 1B Phase 3, currently under construction.

    Rosa project capacity expansion
    242 megawattsfrom 187 megawatts
    Q2 FY26

    Expanded capacity for Project Rosa, now designated for AI workloads.

    Hedy project capacity expansion
    198 megawattsfrom 120 megawatts
    Q2 FY26

    Expanded capacity for Project Hedy, now designated for AI workloads.

    Ellen project capacity expansion
    145 megawattsfrom 100 megawatts
    Q2 FY26

    Expanded capacity for Project Ellen, now designated for AI workloads.

    Fei project capacity expansion
    240 megawattsdoubled from 120 megawatts
    Q2 FY26

    Expanded capacity for Project Fei, now designated for AI workloads.

    Additional capacity from expanded term sheets
    300 megawatts
    Q2 FY26

    Total additional capacity from expanded term sheets at Rosa, Hedy, Ellen, and Fei.

    Grace project capacity
    2 megawatts
    Q2 FY26

    Technical validation effort with Siemens PTI team, allocated to Dorothy 3 capacity.

    Renewable power cost
    $40
    Q2 FY26

    Estimated power cost from renewable plant.

    Industry KPIs

    2
    MetricValueDetails
    Capacity CAPEX14 MWMW
    Revenue growth$15.1MUSD

    Deals & partnerships

    7
    Briscoe Wind FarmAcquisition of a 150-megawatt wind farm.$53 million

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

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

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

    NavitasAcquisition of Navitas' interest in Dorothy 1B.

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

    MetrobloksDefinitive 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 tenantSigned 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 namedSecured 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 operatorExecuted 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

    6
    Execution capability for AI infrastructure transformationNext 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 buildsOngoing

    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 delaysOngoing 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 queueOngoing, 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 maintenanceQ2 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 revenueQ2 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

    5

    Kati 2 definitive lease agreement

    Next quarter
    CurrentLetter of Intent signed, commercial terms and lease negotiations underway.
    TargetDefinitive 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.

    Q&A highlights

    7

    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 read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.