HIVE Digital Technologies (HIVE) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $87.3 million, up 285% year-over-year, driven by Bitcoin mining and BUZZ HPC/AI cloud growth, with significant expansion in Paraguay and global hydro-powered data centers.

• Gross operating margin rose to $42.4 million (49%), up from $400,000 (2%) year-over-year, reflecting operational efficiency and fleet optimization.

• Adjusted EBITDA reached $31.5 million, but reported a net loss of $15.8 million due to non-cash charges, including accelerated depreciation and investment losses.

• Maintained a strong balance sheet with up to $136.7 million in digital assets and $25.7 million in strategic investments, supporting disciplined expansion.

• Achieved 25 EH/s operational hashrate in November 2025, with a path to 35 EH/s by Q4 2026.

Financial highlights

• Revenue for Q2 2026 was $87.3 million, up from $22.6 million in Q2 2025 and $45.6 million in Q1 2026, driven by increased exahash capacity and higher Bitcoin prices.

• Produced 719 Bitcoin equivalent in Q2, up from 406 in the prior period.

• Gross operating margin improved to 49% in Q2 2026 from 2% in Q2 2025 and 35% in Q1 2026.

• Adjusted EBITDA was $31.5 million in Q2 2026, compared to $12 million in Q2 2025 and $44.6 million in Q1 2026.

• Net loss of $15.8 million in Q2 2026, compared to nil in Q2 2025 and net income of $35.5 million in Q1 2026, mainly due to non-cash investment losses and accelerated depreciation.

Outlook and guidance

• Targeting $750 million ARR by end of 2026, with $550 million from Bitcoin mining (35 exahash) and $225 million from BUZZ AI cloud and hyperscaler colo.

• Plans to double GPU AI cloud capacity from 5,000 to 11,000 GPUs by end of 2026, with incremental ARR targets of $140–$225 million.

• Additional 100 MW of green energy approved in Paraguay, enabling potential expansion to 35 exahash and further margin improvement.

• Strategic focus on disciplined capital allocation and maintaining best-in-class ROIC.

• Bitcoin mining revenue run-rate approaching $400 million at a 50% operating margin after electrical costs.