Soluna (NASDAQ:SLNH) reported second-quarter 2026 revenue of $15.1 million, up 145% from a year earlier, as its hosting operations expanded and additional sites ramped. The company said the quarter marked its fifth consecutive period of sequential revenue growth, while it continued to build its renewable-powered data center pipeline for AI and high-performance computing workloads.
The company also changed its accounting presentation for pass-through electricity costs during the quarter, reporting those costs on a gross basis in both revenue and cost of revenue. Chief Financial Officer Michael Picchi said the change added approximately $4.4 million to each line item in the second quarter but had no effect on gross profit, operating loss or net loss. Excluding the presentation change, revenue increased 73% year over year and 13% sequentially, he said.
Operating Results and Site Performance
Soluna acquired the 150-megawatt Briscoe Wind Farm in West Texas for $53 million on April 1. The wind farm contributed $366,000 in revenue during the quarter, net of intercompany eliminations, but posted a gross loss of $787,000 as Soluna completed roughly $1.5 million in turbine repairs and maintenance. Chief Development Officer Ryan Carver said the inherited maintenance backlog was addressed immediately and that the work was completed in the third quarter.
Data hosting generated $1.9 million of segment gross profit and was the company’s largest contributor, according to Picchi. Demand-response services also contributed at what he described as effectively full margin. Proprietary Bitcoin mining results weakened, however, as revenue declined $1.1 million, or 40%, amid a 34% decline in hash price and the conversion of Dorothy 1B capacity from proprietary mining to hosting.
The company recorded a net loss of $22.6 million, compared with a $7.8 million loss in the second quarter of 2025. The increase reflected non-cash stock-based compensation, higher interest expense and a loss on debt extinguishment. Adjusted EBITDA was a loss of $1.6 million, improving from a $2.1 million loss in the first quarter and roughly flat from the prior-year period.
Carver said Kati 1, Soluna’s 83-MW campus in Willacy County, Texas, achieved its first positive gross profit during the year. The final 14 MW phase was under construction and running ahead of schedule, with the company expecting total operating capacity to rise from 192 MW to 206 MW by the end of the summer.
Asset Consolidation and Liquidity
During the quarter, Soluna consolidated ownership of Project Dorothy 1. It acquired Spring Lane Capital’s interest in Dorothy 1A on April 15 and Navitas’ interest in Dorothy 1B on May 19. Combined with the Briscoe acquisition, Chief Executive Officer John Belizaire said the transactions gave Soluna ownership of both wind generation and computing operations across the 50-MW Dorothy 1 site.
Soluna raised $159.4 million during the quarter, including $113.5 million through its at-the-market equity program, $24.5 million in debt financing, $18.9 million through a standby equity purchase agreement and $2.5 million from warrant exercises. Since quarter-end, it raised an additional $23.6 million through the ATM program, issuing approximately 18.8 million shares.
The company ended the quarter with $113 million in cash available for project development and operations, positive working capital of $69.2 million and a current ratio of 2.1 times. Total assets rose 54% to $293.5 million. Soluna also eliminated its Series B preferred stock during the quarter after conversion into common stock and payment of $2.1 million in accumulated dividends.
- Revenue: $15.1 million, up 145% year over year as reported
- Gross profit: $766,000
- Net loss: $22.6 million
- Adjusted EBITDA loss: $1.6 million
- Cash available for project development and operations: $113 million
- Operating capacity: 192 MW, expected to reach 206 MW by the end of summer
AI Campus Development Advances
Soluna said it now has more than 650 MW of prospective AI capacity across Kati 2 and Dorothy 3. Kati 2, located across from Kati 1, is expected to exceed 350 MW at full build-out, including an initial phase of more than 100 MW of critical IT capacity and a later 250-MW expansion.
The company signed a definitive joint venture with Metrobloks for Kati 2 in June, with Soluna holding all Class A interests and serving as manager. Carver said the project is nearly complete with design development, has a general contractor in place and has made commitments for certain long-lead electrical equipment. Soluna also signed a letter of intent and commercial terms with a prospective tenant, though lease negotiations remain underway.
Carver said Soluna estimates Kati 2 could reach initial readiness for service roughly 15 months after a contract is signed. The company is also engineering a 100-MW expansion of the Las Majadas substation to support later phases and has secured access to a natural gas pipeline intended to improve resiliency through potential onsite generation.
Dorothy 3 is planned as a more than 300-MW AI campus adjacent to Soluna’s existing Dorothy operations in West Texas. The company has 397 acres under contract for the initial build-out and has started master planning, environmental, water, survey and fiber studies, along with ERCOT integration work. Management said formal marketing is expected to begin in the fall, though the project has already received inbound customer interest.
Pipeline Growth and ERCOT Review
Soluna’s total renewable power pipeline stood at approximately 6.3 GW as of Aug. 1, up from 4.3 GW earlier in the year. About 1.6 GW was in planning and development, while roughly 4.5 GW was in assessment with power partners. The company expanded potential capacity at four existing sites: Rosa, Hedy, Ellen and Fei, adding more than 300 MW in aggregate.
Belizaire addressed Texas Governor Greg Abbott’s directive for the Public Utility Commission of Texas and ERCOT to audit data centers in ERCOT’s interconnection queue. He said Soluna’s exposure is limited because roughly 146 MW of its Texas capacity is already energized and its Kati 2 and Dorothy 3 developments are adjacent to existing energized interconnections.
Management said its behind-the-meter model, which combines renewable generation, grid access and flexible interruptible load, positions the company to meet the types of criteria Texas regulators are examining. Soluna said it supports the review and expects to cooperate with ERCOT and the PUCT.
Looking ahead, Soluna said it intends to complete Kati 1’s final 14 MW, advance Kati 2 toward construction documents, continue Dorothy 3 development and marketing preparations, and pursue additional Bitcoin hosting agreements and power purchase agreements.
About Soluna (NASDAQ:SLNH)
Soluna Computing, Inc (NASDAQ: SLNH) is a renewable energy and computing company that develops, constructs and operates utility?scale wind and solar projects designed to power high-performance computing workloads. By integrating power generation with data processing infrastructure, Soluna targets applications such as cryptocurrency mining, blockchain validation, artificial intelligence training and other cloud?based or on-premises computing tasks that can flex to available renewable output.
The company manages the full project lifecycle—site selection, permitting, engineering, procurement, construction and operations—with a focus on regions that offer abundant wind or solar resources yet face limitations in grid infrastructure.
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