Marathon Digital (NASDAQ:MARA) Posts Earnings Results, Misses Estimates By $1.77 EPS

Marathon Digital (NASDAQ:MARA) announced its earnings results on Thursday. The business services provider reported ($1.60) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.17 by ($1.77), FiscalAI reports. The business had revenue of $174.88 million for the quarter, compared to the consensus estimate of $209.44 million. Marathon Digital had a negative net margin of 429.71% and a negative return on equity of 22.55%. The business’s quarterly revenue was down 26.7% compared to the same quarter last year. During the same quarter last year, the firm posted $1.84 earnings per share.

Here are the key takeaways from Marathon Digital’s conference call:

• MARA expects its power portfolio to reach approximately 4.8 gigawatts after completing the Long Ridge transaction and securing the Matagorda County, Texas site, which could support up to 2 gigawatts subject to approvals.
• The company said Long Ridge is expected to contribute approximately $144 million in annualized EBITDA, with roughly 70% of its power output covered by long-term contracts. MARA also said tenant demand for its AI infrastructure sites has exceeded initial expectations and that it remains confident of signing at least two leases by year-end.
• Second-quarter revenue fell to $174.9 million from $238.5 million a year earlier, while MARA reported a $611.3 million net loss, primarily reflecting lower Bitcoin prices and a $343 million unrealized digital-asset mark-to-market loss.
• MARA expanded borrowings by $600 million through Bitcoin-backed credit facilities at a weighted average cost of 7.56% and expects to assume about $900 million of Long Ridge debt. The financing is non-dilutive but increased the share of its Bitcoin holdings pledged as collateral to 54%.
• Mining efficiency continued to improve: energized hashrate rose 22% year over year to 70.3 exahash per second, while daily operating cost per petahash declined 4% to $27.7. The company expects the expiration of hosted-mining agreements beginning in 2027 to reduce third-party hosting costs over time.

Marathon Digital Trading Down 5.3%

Shares of NASDAQ MARA traded down $0.56 during mid-day trading on Friday, reaching $10.09. The company had a trading volume of 56,436,030 shares, compared to its average volume of 47,364,900. The stock has a market cap of $3.85 billion, a price-to-earnings ratio of -1.10 and a beta of 5.40. Marathon Digital has a 52 week low of $6.66 and a 52 week high of $23.45. The business’s 50-day moving average is $12.81 and its 200-day moving average is $11.03. The company has a current ratio of 1.84, a quick ratio of 1.84 and a debt-to-equity ratio of 0.99.

Key Stories Impacting Marathon Digital

Here are the key news stories impacting Marathon Digital this week:

• Positive Sentiment: AI and data-center expansion offers a potential catalyst. MARA said it is targeting at least two artificial-intelligence/high-performance-computing leases by year-end and has doubled its power capacity to 4.8 gigawatts. Needham cited stronger tenant demand through MARA’s Starwood partnership, although it withheld a price target pending more detail on the venture’s economics. MARA targets AI/HPC leases
• Positive Sentiment: Some analysts still see substantial upside. Rosenblatt reaffirmed a “buy” rating with a $15 price target, while Cantor Fitzgerald maintained an “overweight” rating despite reducing its target to $12. Both targets remain above the current trading level. Analyst rating updates
• Neutral Sentiment: Options activity was unusually elevated. Traders purchased approximately 250,000 MARA call options, about 14% above average daily call volume. This may indicate speculative bullish positioning, but it does not necessarily represent sustained investor conviction.
• Negative Sentiment: Second-quarter results missed expectations. MARA reported a $611.3 million net loss, revenue of $174.9 million versus roughly $209.4 million expected, and a year-over-year revenue decline of about 27%. Per-share results also came in below consensus, reinforcing concerns about profitability. MARA reports Q2 loss
• Negative Sentiment: Bitcoin production and holdings remain pressure points. MARA’s Bitcoin holdings reportedly fell 29% year over year to 35,577 Bitcoin. Investors are concerned that weaker mining economics and large quarterly losses could limit the benefit of higher Bitcoin prices. MARA Bitcoin holdings and Q2 loss
• Negative Sentiment: Price-target reductions added to selling pressure. The broader Bitcoin-mining group declined as analysts cut targets and investors prioritized Q2 losses over Bitcoin’s rebound. MARA’s high volatility amplifies the impact of disappointing results and analyst revisions. MARA stock and price-target cuts

Analyst Ratings Changes

Several research analysts recently weighed in on the stock. Weiss Ratings downgraded shares of Marathon Digital from a “sell (d)” rating to a “sell (d-)” rating in a report on Tuesday, May 12th. BTIG Research restated a “buy” rating and issued a $27.00 price objective on shares of Marathon Digital in a research report on Monday, June 1st. Piper Sandler dropped their price objective on Marathon Digital from $16.00 to $13.00 and set an “overweight” rating for the company in a research note on Friday, July 17th. Cantor Fitzgerald lowered their price target on Marathon Digital from $14.00 to $12.00 and set an “overweight” rating on the stock in a report on Friday. Finally, Rosenblatt Securities restated a “buy” rating and issued a $15.00 price target on shares of Marathon Digital in a research note on Friday. Eight equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, Marathon Digital presently has a consensus rating of “Moderate Buy” and an average price target of $18.72.

Insider Activity at Marathon Digital

In other Marathon Digital news, Director Douglas K. Mellinger sold 7,000 shares of the stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $16.00, for a total transaction of $112,000.00. Following the transaction, the director directly owned 231,618 shares in the company, valued at $3,705,888. This represents a 2.93% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Salman Hassan Khan sold 16,000 shares of the business’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $12.00, for a total transaction of $192,000.00. Following the completion of the transaction, the chief financial officer directly owned 425,066 shares of the company’s stock, valued at $5,100,792. This trade represents a 3.63% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 109,260 shares of company stock valued at $1,452,756 over the last 90 days. 0.97% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. State Street Corp boosted its holdings in shares of Marathon Digital by 1.4% in the 2nd quarter. State Street Corp now owns 13,455,176 shares of the business services provider’s stock valued at $210,977,000 after acquiring an additional 191,380 shares during the last quarter. UBS Group AG lifted its position in Marathon Digital by 104.1% during the third quarter. UBS Group AG now owns 12,098,686 shares of the business services provider’s stock valued at $220,922,000 after purchasing an additional 6,172,110 shares during the period. Marex Group plc lifted its position in Marathon Digital by 2.6% during the fourth quarter. Marex Group plc now owns 10,137,713 shares of the business services provider’s stock valued at $91,037,000 after purchasing an additional 259,210 shares during the period. Voloridge Investment Management LLC purchased a new stake in Marathon Digital in the third quarter valued at $93,066,000. Finally, Charles Schwab Investment Management Inc. boosted its holdings in Marathon Digital by 8.3% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 4,390,797 shares of the business services provider’s stock valued at $39,429,000 after purchasing an additional 337,704 shares during the last quarter. Institutional investors own 44.53% of the company’s stock.

Marathon Digital Company Profile

Marathon Digital Holdings, Inc is a digital asset technology company specializing in the mining and acquisition of bitcoin. Headquartered in Las Vegas, Nevada, the firm employs high-performance application-specific integrated circuit (ASIC) miners and proprietary software to secure the Bitcoin network and expand its crypto-mining footprint. Marathon Digital focuses on operational efficiency and scalability, while maintaining rigorous standards for regulatory compliance and corporate governance.

The company operates multiple large-scale mining facilities throughout North America, including sites in Texas, Montana and New York.