Soluna Q1 revenue rises 58% as hosting drives growth
Soluna Holdings said on Monday that first-quarter revenue rose 58% year over year to $9.4 million, with data hosting emerging as the main driver of the increase as the company continued to shift its mix away from cryptocurrency mining. The update matters because it shows the company’s growth is increasingly tied to its hosting and infrastructure business rather than volatile mining revenue, even as losses remained elevated [3].
Overview
- Revenue climbed to $9.4 million in Q1 2026, up 58% year over year; the gain was led by hosting, which now carries more of the revenue mix [3].
- Data hosting revenue was $6.7 million, the largest segment contribution; that shift suggests Soluna is leaning further into infrastructure services [3].
- Cryptocurrency mining revenue fell to $2.2 million, showing the company’s business has become less dependent on miner economics [3].
- Demand response contributed $0.5 million, providing a smaller but still relevant third revenue stream for the quarter [3].
- Net loss widened to $17.9 million from $7.4 million a year earlier, underscoring that top-line growth has not yet translated into profitability [3].
- Adjusted EBITDA was negative $2.1 million, indicating operating leverage remains limited despite stronger revenue growth [3].
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Hosting revenue drives Soluna’s Q1 increase
Soluna’s first-quarter results point to a clear change in the company’s revenue base. Data hosting generated $6.7 million in Q1, accounting for the bulk of the $9.4 million total, while mining revenue slipped to $2.2 million [3]. Demand response added $0.5 million [3].
The company said this was its fourth consecutive quarter of sequential revenue growth, and management linked the improvement to assets coming online and ramping at several projects. Chief executive John Belizaire said the company was entering the next phase of growth from a position of operational strength [2]. That comment is management’s interpretation, but the numbers show the mix is tilting toward hosting.
For investors, the shift matters because hosting revenue is generally viewed as more predictable than crypto mining output, which can swing with hash prices and network conditions. Analysts note that a heavier hosting mix can improve revenue visibility, although it does not automatically solve the company’s profitability problem. Soluna’s Q1 results still showed a wider loss and negative adjusted EBITDA [3].
Soluna hosting revenue outpaces mining
| Metric | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Total revenue | $9.4 million | $5.9 million | +58% [3] |
| Data hosting revenue | $6.7 million | $2.4 million | +178% [6] |
| Cryptocurrency mining revenue | $2.2 million | Not disclosed in the source summary | N/A [3] |
| Net loss | $17.9 million | $7.4 million | Wider loss [3] |
The table above shows the clearest readthrough from the quarter: hosting is growing much faster than the company’s legacy mining business [3][6]. That shift has helped lift revenue, but it has also exposed a key limitation. Costs, including stock-based compensation and higher general and administrative expense, remain heavy enough to keep the company deeply in the red [3].
Profitability remains the main risk
Soluna said general and administrative expense rose to $18.5 million in the quarter, including $10.2 million of stock-based compensation [3]. That cost structure is a reminder that revenue growth alone is not yet enough to support a cleaner earnings profile.
The downside scenario is straightforward. If hosting growth slows before project utilization improves further, the company could be left with a higher-cost base and limited margin expansion. Interpretation based on available data: the business is becoming more diversified, but it still needs more consistent operating profit to justify the expansion story.
Management’s update also leaves some uncertainty around how much of the improvement is durable. The company flagged contributions from Kati 1, the return of Dorothy 1A to full capacity, and the full ramp of Dorothy 2 [2]. Those are positive operational markers, but they also mean future results will depend on execution across a growing project base.
| Cost and profitability snapshot | Q1 2026 | Q1 2025 | Implication |
|---|---|---|---|
| General and administrative expense | $18.5 million | Not fully detailed in the summary | Cost pressure remains elevated [3] |
| Stock-based compensation | $10.2 million | Not fully detailed in the summary | Non-cash dilution remains a factor [3] |
| Adjusted EBITDA | -$2.1 million | -$1.6 million | Operating losses persist [3] |
Why Soluna’s hosting mix matters
The broader relevance is in Soluna’s market positioning. A company that once leaned heavily on mining is now showing more dependence on data hosting, which aligns it more closely with the infrastructure side of digital assets and high-performance computing [3]. That matters because investors generally treat infrastructure revenue differently from mining revenue, especially when evaluating predictability and customer retention.
The company has also framed itself as a developer of green data centers for intensive computing applications, including Bitcoin mining and AI [4]. That positioning keeps it connected to both crypto and AI infrastructure demand, but the Q1 numbers show the current revenue engine is still primarily hosting, not AI services. High-performance computing services generated no revenue in the period [3].
Soluna’s prior-year and year-end disclosures also show a business that has been scaling quickly. In 2024, revenue rose 80.5% to $38 million, and the company said Project Dorothy 1A and 1B were online for the full year [1]. The latest quarter extends that trend, but profitability remains the unresolved issue.
Forward view
The next test is whether Soluna can sustain hosting growth while narrowing losses. If asset utilization continues to improve, revenue quality should strengthen further. If not, the company may continue to rely on project ramp-ups and financing flexibility to support expansion. For now, the message from Q1 is clear: hosting is carrying the growth story, but the path to durable earnings is still incomplete.
Sources
- https://www.solunacomputing.com/news/2024-results/
- https://www.solunacomputing.com/news/q1-2026-results/
- https://www.stocktitan.net/sec-filings/SLNH/8-k-soluna-holdings-inc-reports-material-event-cbf97355390b.html
- https://www.bastillepost.com/global/article/5863524-soluna-reports-q126-results-revenue-grows-58-year-over-year-and-4th-consecutive-quarter-sequentially
- https://lasvegassun.com/news/2026/may/18/soluna-reports-q126-results-revenue-grows-58-year-/
- https://quartr.com/companies/soluna-holdings-inc_16135
