HUT earnings analysis
What we found in HUT's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Hut 8 delivered strong Q2 revenue growth to $74.932 million, with Compute revenue more than doubling year over year and gross margin holding near 64%. However, the company swung to a $177.142 million net loss and a $206.330 million operating loss, primarily reflecting a $138.597 million Bitcoin mark-to-market loss, substantially higher stock compensation, depreciation, and interest expense. Liquidity was transformed by $7.7 billion of project financing, but operating cash flow was negative $32.845 million for the first six months and capital expenditures reached $616.2 million as the company moves into large-scale data-center execution.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Compute drove 81% revenue growth
- Q2 revenue increased 81.4% year over year to $74.932 million from $41.299 million, led by Compute revenue of $72.471 million, up $38.176 million. Gross margin was 64.1% ($48.041 million gross profit), versus 47.3% a year earlier and roughly 64.0% in Q1 2026.
- Mining volumes more than tripled
- Compute revenue rose as Bitcoin mined increased to approximately 935 from approximately 308, more than offsetting the decline in average revenue per Bitcoin to approximately $71,905 from approximately $98,320. Vega commenced ASIC operations in August 2025 and Drumheller was re-energized in March 2026.
- Core adjusted EBITDA improved
- Adjusted EBITDA excluding Hut 8 digital-asset mark-to-market was positive $10.449 million, improving from $4.191 million in Q2 2025. This contrasts with adjusted EBITDA including digital-asset marks of negative $94.582 million.
- Beacon Point campus fully contracted
- Beacon Point Phase 2 adds 352 MW of critical IT capacity and has estimated base contract value of approximately $9.8 billion over its 15-year initial term, with expected average annual NOI of approximately $655.0 million. Together with Phase 1, Beacon Point has 704 MW of contracted critical IT capacity and approximately $19.6 billion of aggregate base contract value.
- Project financing funded major builds
- The company raised $7.7 billion in gross proceeds from senior secured notes and a term loan during the first six months, including $4.25 billion of 6.129% Beacon Point notes and $3.25 billion of 6.192% River Bend notes. Both project-note structures are described as non-recourse to the parent.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Bitcoin marks drove a large GAAP loss
- GAAP net loss was $177.142 million, versus net income of $137.483 million a year earlier, as a $138.597 million digital-asset loss replaced a $217.640 million gain. Bitcoin declined from approximately $68,222 to approximately $59,847 during Q2.
- Operating expenses sharply outpaced revenue
- Operating loss was $206.330 million, compared with operating income of $187.859 million in Q2 2025. General and administrative expense rose $45.922 million to $76.080 million, including a $43.6 million increase in share-based compensation.
- Financing materially increased interest burden
- Interest expense increased to $51.160 million from $8.396 million after construction financing, while the company issued $7.50 billion of River Bend and Beacon Point senior secured notes in April and June. Although project-level and non-recourse, debt service depends principally on future lease cash flows.
- Capex intensity and cash use remain high
- Six-month operating cash flow remained negative $32.845 million and property-and-equipment purchases were $616.2 million, versus $108.7 million in the prior-year period. The company says River Bend and Beacon Point each require multi-billion-dollar capital investment.
- Non-Compute segments contracted
- Power revenue fell $4.316 million to $1.176 million following the February 2026 Far North JV divestiture, while Digital Infrastructure revenue declined $0.227 million to $1.285 million due to CPU customer churn and the terminated Vega colocation agreement.
What they reported.
What the company itself reported, taken out of the document.
- Gross margin
- 64.1%
- Operating margin
- -275.4%
- Segment
- Power: $1.176 million revenue, down $4.316 million year over year from $5.492 million
- Segment
- Digital Infrastructure: $1.285 million, down $0.227 million year over year from $1.512 million
- Segment
- Compute: $72.471 million, up $38.176 million year over year from $34.295 million
What they said about what is next.
The 10-Q provides no numeric revenue or EPS guidance. Management expects River Bend and Beacon Point to require multi-billion-dollar capital investment, expects project-level financing and cash flows under long-term triple-net leases to support construction and debt service, and says Beacon Point Phase 2 initial delivery is expected to begin in Q2 2028.
The filing reads worse than the one before it.
What came before.
- 10-Q · May 6, 2026
- In Q1 2026, Hut 8 Corp reported a significant revenue of $71 million, a substantial increase from $21.8 million in the same period last year. However, losses continued with a net loss of $253.1 million, worsened by a…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing HUT makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever