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

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

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 Stock Down 5.3%

Shares of MARA stock traded down $0.56 during mid-day trading on Friday, hitting $10.09. The stock had a trading volume of 56,436,030 shares, compared to its average volume of 47,364,900. Marathon Digital has a 12-month low of $6.66 and a 12-month high of $23.45. The company has a debt-to-equity ratio of 0.99, a current ratio of 1.84 and a quick ratio of 1.84. The firm’s 50-day moving average is $12.81 and its two-hundred day moving average is $11.03. The firm has a market capitalization of $3.85 billion, a P/E ratio of -1.10 and a beta of 5.40.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on the company. BTIG Research reiterated a “buy” rating and set a $27.00 target price on shares of Marathon Digital in a research report on Monday, June 1st. Morgan Stanley cut their price target on shares of Marathon Digital from $7.00 to $5.50 and set an “underweight” rating on the stock in a report on Wednesday, July 8th. Cantor Fitzgerald reduced their price target on shares of Marathon Digital from $14.00 to $12.00 and set an “overweight” rating on the stock in a research note on Friday. Citizens Jmp assumed coverage on shares of Marathon Digital in a report on Wednesday, June 24th. They set a “market outperform” rating and a $24.00 price objective for the company. Finally, Rosenblatt Securities reissued a “buy” rating and issued a $15.00 price objective on shares of Marathon Digital in a research report on Friday. Eight analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, Marathon Digital has a consensus rating of “Moderate Buy” and an average price target of $18.72.

Insider Transactions at Marathon Digital

In other Marathon Digital news, CEO Frederick G. Thiel sold 27,505 shares of the stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $14.25, for a total transaction of $391,946.25. Following the transaction, the chief executive officer directly owned 4,562,009 shares in the company, valued at $65,008,628.25. This represents a 0.60% 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 firm’s stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $12.00, for a total transaction of $192,000.00. Following the transaction, the chief financial officer directly owned 425,066 shares in the company, valued at $5,100,792. This trade represents a 3.63% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 109,260 shares of company stock worth $1,452,756. Corporate insiders own 0.97% of the company’s stock.

Hedge Funds Weigh In On Marathon Digital

Hedge funds and other institutional investors have recently modified their holdings of the business. MML Investors Services LLC purchased a new stake in shares of Marathon Digital during the fourth quarter valued at about $110,000. PCM Encore LLC purchased a new position in shares of Marathon Digital in the 4th quarter worth approximately $119,000. CI Investments Inc. grew its position in shares of Marathon Digital by 17.1% in the 4th quarter. CI Investments Inc. now owns 12,563 shares of the business services provider’s stock worth $113,000 after buying an additional 1,830 shares during the last quarter. J.W. Cole Advisors Inc. bought a new position in shares of Marathon Digital during the 4th quarter worth approximately $137,000. Finally, NewEdge Advisors LLC raised its stake in shares of Marathon Digital by 42.0% during the 3rd quarter. NewEdge Advisors LLC now owns 9,242 shares of the business services provider’s stock worth $169,000 after acquiring an additional 2,735 shares in the last quarter. 44.53% of the stock is currently owned by institutional investors.

Marathon Digital News Roundup

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

About Marathon Digital

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.