SLNH Q2 2026 - Post-Call Earnings Update
Verdict
- Revenue missed: $15.060m against $15.700m consensus, -4.1%. The CFO confirmed both readings of the top line — 145% reported, 73% excluding the gross-up presentation change, and 13% sequentially.
- EPS missed: GAAP basic and diluted loss of $(0.18) against $(0.11) consensus, -$0.07. No adjusted EPS was given on the call either.
- Still no financial guidance. No revenue, EBITDA or margin target for any period. Management guided to milestones instead: 206 MW operating by end of summer, formal Dorothy 3 tenant marketing in the fall.
- The one thing that matters: the call put the first hard numbers on the AI thesis and they are enormous relative to the company. A 100 MW build is $1.2-1.3bn of capex against $113.4m of cash, funded 70-80% by project-level debt management called "likely high yield notes" — debt that would be underwritten against a lease that has an LOI, no signature, no named tenant, and no timing. Everything now rests on that one document.
Consensus scorecard
| Metric / basis | Quartr actual | API Ninjas consensus | Beat/Miss | Beat/Miss % |
|---|---|---|---|---|
| Revenue (total revenue) | $15.060m | $15.700m | Miss -$0.640m | -4.1% |
| EPS (GAAP basic and diluted) | $(0.18) | $(0.11) | Miss -$0.07 | -63.6% |
Guidance & KPIs
| Item | New on the call | Prior guide | Prior-year actual |
|---|---|---|---|
| Operating capacity | 206 MW by end of summer; final 14 MW at Kati 1 ahead of schedule | 192 MW energised at Aug 1 | n/a |
| Kati 2 anchor lease | LOI signed, lease negotiations underway, no timing committed | LOI announced July | None |
| Lease signature to initial power (Kati 2) | ~15 months | Not previously disclosed | n/a |
| Dorothy 3 tenant process | Formal marketing begins in the fall; 397 acres under contract | Not previously dated | n/a |
| Illustrative 100 MW AI campus | $1.2-1.3bn capex, ~$180m stabilised annual NOI | Not previously disclosed | n/a |
| AI funding structure | 70-80% project debt / 20-30% equity, raised 8-12 weeks after a signed lease | Not previously disclosed | n/a |
Management commentary
- On when the Kati 2 lease actually signs, the CEO would not commit: "the answer to timing is stay tuned." He also declined to say whether the tenant under LOI is a hyperscaler or a neocloud.
- The $180m NOI figure was explicitly labelled illustrative and not a forecast, offered to justify spending ahead of a contract rather than to be modelled.
- On Texas, management framed Abbott's August 3 audit directive as a tailwind: roughly 146 MW of its Texas capacity is already energised, the audit targets new studied load, and the company was already submitted as batch load. It also conceded it "cannot make any promises" on the outcome.
- Asked for the single biggest risk over 18 months, both the CEO and the new CDO named execution capability and team-building — not power, demand or the ERCOT process. The CFO named capital access.
- The inherited Briscoe maintenance backlog was fixed deliberately and immediately, with the repair work completed in Q3.
Quality of earnings
- The sequential number is the honest one and it is the smallest. Reported growth of 145% becomes 73% year on year excluding the $4.4m gross-up of pass-through electricity costs, and 13% sequentially. Proprietary mining fell $1.1m or 40% on hash price compression from ~$51 to $34 and the deliberate conversion of Dorothy 1B from mining to hosting.
- The $53m wind farm lost money at the gross line in its first quarter of ownership. Briscoe posted a $787k gross loss on roughly $1.5m of turbine repairs and contributed just $366k of wind revenue net of intercompany elimination, against consolidated gross profit of $766k. Data hosting carried the quarter with $1.9m of segment gross profit.
- Almost the entire cost increase is non-cash. G&A rose $9.8m year on year, of which $7.5m is the increase in stock compensation; salaries added $1.1m and professional and legal fees $720k on the Briscoe transaction and financing work. Adjusted EBITDA loss of $1.6m improved 25% sequentially from $2.1m.
Gotchas & watch items
- The ERCOT audit freezes queue approvals against roughly 474 GW of pending requests, about 90% of them data centres. Management's exemption argument covers the ~146 MW already energised — but Kati 2 phase one is 100+ MW and Dorothy 3 is 300+ MW of capacity that still needs incremental power.
- On a 15-month build from signature, an immediate lease still produces no AI revenue before late 2027, while the pre-contract spend on design, long-lead equipment and land continues now.
- The funding plan depends on a high-yield project debt market accepting a first-time issuer at 70-80% loan-to-cost against a single tenant lease, formed inside an 8-12 week window after signing.
- The SEPA is now fully utilised and the ATM has continued past quarter-end, with ~18.8m shares issued for $23.6m; the Generate debt was reclassified to current and just over half was prepaid this week.
Event: https://web.quartr.com/companies/16135/events/673304/overview Retrieved: 2026-08-13T22:16:00Z Comparison mode: maximal · Scorecard contract: v1