CleanSpark Q1 2026 Earnings Call Insights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy CLSK?
Source: seekingalpha
- Revenue and Margin Changes: CleanSpark reported over $180 million in revenue for Q1, despite a $43 million decline quarter-over-quarter primarily due to Bitcoin price volatility and rising network difficulty, with gross margins decreasing from 57% to 47%, reflecting market challenges.
- AI Infrastructure Expansion: The company acquired 271 acres in Texas along with 285 megawatts of contracted power, planning to establish a Houston-area AI data center hub with nearly 900 megawatts of aggregate potential capacity, marking a significant step in its transition to digital infrastructure.
- Capital Operations and Share Buybacks: CleanSpark completed a $1.15 billion convertible offering and repurchased $460 million in shares, bringing total buybacks to over $600 million since December 2024, reducing outstanding shares by approximately 20%, thereby enhancing shareholder value.
- Future Outlook and Market Demand: Management expects to shift from portfolio formation to commercialization milestones, emphasizing that the AI data center business will provide stable cash flows and high margins, and remains confident in signing contracts despite Bitcoin market volatility.
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Analyst Views on CLSK
Wall Street analysts forecast CLSK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CLSK is 23.50 USD with a low forecast of 14.00 USD and a high forecast of 27.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
10 Buy
0 Hold
0 Sell
Strong Buy
Current: 10.220
Low
14.00
Averages
23.50
High
27.00
Current: 10.220
Low
14.00
Averages
23.50
High
27.00
About CLSK
CleanSpark, Inc. is a bitcoin mining company. The Company independently owns and operates data centers across the United States with locations in Georgia, Mississippi, Tennessee and Wyoming for a total contracted power capacity of approximately 853 megawatts (MW). The Company designs its infrastructure to responsibly secure and support the bitcoin network. Its operating mining units are capable of producing over 40 exahashes per second (EH/s) of computing power. The Company operates approximately 188,500 bitcoin mining machines, with a hashrate capacity of approximately 27.6 EH/s and a fleetwide efficiency of 21.94 joules per terahash (J/TH). The Company's subsidiaries include ATL Data Centers LLC, CleanBlok, Inc., CleanSpark DW, LLC, CleanSpark GLP, LLC, CSRE Properties Washington, LLC, CSRE Properties Dalton, LLC, CSRE Property Management Company, LLC, and CSRE Properties Norcross, LLC, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
CleanSpark's Q1 Revenue Misses Analyst Expectations
- Quarterly Revenue Growth: CleanSpark reported Q1 revenue of $181.2 million, reflecting an 11.6% year-over-year increase, yet falling short of the analyst estimate of $187.73 million, indicating competitive pressures in the market.
- Asset and Liability Overview: As of the end of the quarter, the company held total assets of $3.3 billion, including $1 billion in bitcoin and $867.4 million in mining assets, showcasing its significant investment in the cryptocurrency sector.
- Widening Core Losses: The company reported an adjusted core loss of $295.4 million, a stark contrast to the $321.6 million profit recorded in the same period last year, and significantly below Wall Street's expectation of $70.44 million profit, highlighting a severe deterioration in profitability.
- Market Sentiment Shift: On Stocktwits, retail sentiment around CLSK stock shifted from 'bearish' to 'extremely bearish', with message volume increasing from 'low' to 'high', reflecting growing investor concerns about the company's future performance.
See More
CleanSpark Shares Decline Amid Market Turmoil Ahead of Earnings
- Earnings Expectations: Analysts forecast CleanSpark will report earnings per share (EPS) of $0.09 for Q1 FY2026, amidst increased volatility in the cryptocurrency market that has pressured mining stocks across the sector.
- Market Sentiment Decline: Bitcoin has dropped 7.49% in the last 24 hours to $67,015.29, and is down 20.93% over the past week, indicating extreme fear among market participants as reflected by the Crypto Fear and Greed Index.
- Technical Analysis Indicates Weakness: CleanSpark's stock is currently trading 25.9% below its 20-day simple moving average and 34.9% below its 100-day SMA, showing significant short-term weakness with a 10.81% decline over the past year.
- Analyst Ratings and Targets: Despite the current stock price of $9.68, analysts have an average price target of $23.16, indicating undervaluation potential, although Keefe, Bruyette & Woods has lowered its target to $18.00, reflecting cautious sentiment regarding future performance.
See More
CleanSpark Q1 2026 Earnings Call Insights
- Revenue and Margin Changes: CleanSpark reported over $180 million in revenue for Q1, despite a $43 million decline quarter-over-quarter primarily due to Bitcoin price volatility and rising network difficulty, with gross margins decreasing from 57% to 47%, reflecting market challenges.
- AI Infrastructure Expansion: The company acquired 271 acres in Texas along with 285 megawatts of contracted power, planning to establish a Houston-area AI data center hub with nearly 900 megawatts of aggregate potential capacity, marking a significant step in its transition to digital infrastructure.
- Capital Operations and Share Buybacks: CleanSpark completed a $1.15 billion convertible offering and repurchased $460 million in shares, bringing total buybacks to over $600 million since December 2024, reducing outstanding shares by approximately 20%, thereby enhancing shareholder value.
- Future Outlook and Market Demand: Management expects to shift from portfolio formation to commercialization milestones, emphasizing that the AI data center business will provide stable cash flows and high margins, and remains confident in signing contracts despite Bitcoin market volatility.
See More
CleanSpark Reports $378.7 Million Loss in Q1
- Financial Loss: CleanSpark reported a loss of $378.7 million in its fiscal Q1 2023, translating to a per-share loss of $1.35, which did not meet Wall Street expectations, indicating significant financial strain in the current market environment.
- Adjusted Loss: After accounting for non-recurring costs and asset impairments, the adjusted loss was $0.10 per share, which was worse than the analysts' forecast of $0.08 per share, highlighting ongoing challenges in the company's profitability.
- Revenue Shortfall: The company generated revenue of $181.2 million during the quarter, falling short of the $185.1 million expected by analysts, suggesting that weak market demand may have impacted sales performance.
- Market Expectations Missed: Given that the financial results did not align with analyst expectations, CleanSpark's stock price may face downward pressure, leading investors to question the company's future profitability and market strategies.
See More
CleanSpark Q1 Earnings Miss Expectations, Shares Drop
- Revenue Miss: CleanSpark reported Q1 revenue of $181.18 million, falling short of analyst expectations of $195.54 million, although it showed an 11.6% year-over-year increase, indicating a potential disconnect between growth and market expectations.
- Wider Loss Per Share: The company posted a loss of $1.35 per share, significantly worse than the anticipated loss of $0.15, highlighting challenges in cost management and profitability that could impact future funding capabilities.
- Stock Price Decline: CleanSpark shares fell 9.26% in after-hours trading to $7.50, nearing a 52-week low of $6.46, reflecting strong market reactions to the disappointing financial results and prompting investors to reassess their positions.
- Future Outlook: Despite the current financial setbacks, CleanSpark executives noted that their Bitcoin mining operations continue to generate durable cash flows, which are being redeployed into long-term infrastructure opportunities aimed at driving significant shareholder value over time.
See More
CleanSpark Reports Q1 Earnings Miss
- Earnings Miss: CleanSpark's Q1 GAAP EPS of -$1.35 fell short by $1.10, indicating significant challenges in profitability that could undermine investor confidence and affect stock performance.
- Revenue Growth Lags: The reported revenue of $181.2 million, while up 11.6% year-over-year, missed expectations by $6.53 million, suggesting that despite year-over-year growth, the company failed to meet market forecasts, potentially putting pressure on its stock price.
- Bitcoin Production Decline: CleanSpark produced fewer bitcoins in January, highlighting operational efficiency issues in the current market environment, which may impact future profitability and competitive positioning.
- Cautious Market Reaction: Following the earnings miss and decline in bitcoin production, the market is adopting a cautious stance towards CleanSpark's future performance, leading investors to reassess their strategies and potentially increasing stock price volatility.
See More
CleanSpark's Q1 Revenue Misses Analyst Expectations
- Quarterly Revenue Growth: CleanSpark reported Q1 revenue of $181.2 million, reflecting an 11.6% year-over-year increase, yet falling short of the analyst estimate of $187.73 million, indicating competitive pressures in the market.
- Asset and Liability Overview: As of the end of the quarter, the company held total assets of $3.3 billion, including $1 billion in bitcoin and $867.4 million in mining assets, showcasing its significant investment in the cryptocurrency sector.
- Widening Core Losses: The company reported an adjusted core loss of $295.4 million, a stark contrast to the $321.6 million profit recorded in the same period last year, and significantly below Wall Street's expectation of $70.44 million profit, highlighting a severe deterioration in profitability.
- Market Sentiment Shift: On Stocktwits, retail sentiment around CLSK stock shifted from 'bearish' to 'extremely bearish', with message volume increasing from 'low' to 'high', reflecting growing investor concerns about the company's future performance.
See More
CleanSpark Shares Decline Amid Market Turmoil Ahead of Earnings
- Earnings Expectations: Analysts forecast CleanSpark will report earnings per share (EPS) of $0.09 for Q1 FY2026, amidst increased volatility in the cryptocurrency market that has pressured mining stocks across the sector.
- Market Sentiment Decline: Bitcoin has dropped 7.49% in the last 24 hours to $67,015.29, and is down 20.93% over the past week, indicating extreme fear among market participants as reflected by the Crypto Fear and Greed Index.
- Technical Analysis Indicates Weakness: CleanSpark's stock is currently trading 25.9% below its 20-day simple moving average and 34.9% below its 100-day SMA, showing significant short-term weakness with a 10.81% decline over the past year.
- Analyst Ratings and Targets: Despite the current stock price of $9.68, analysts have an average price target of $23.16, indicating undervaluation potential, although Keefe, Bruyette & Woods has lowered its target to $18.00, reflecting cautious sentiment regarding future performance.
See More
CleanSpark Q1 2026 Earnings Call Insights
- Revenue and Margin Changes: CleanSpark reported over $180 million in revenue for Q1, despite a $43 million decline quarter-over-quarter primarily due to Bitcoin price volatility and rising network difficulty, with gross margins decreasing from 57% to 47%, reflecting market challenges.
- AI Infrastructure Expansion: The company acquired 271 acres in Texas along with 285 megawatts of contracted power, planning to establish a Houston-area AI data center hub with nearly 900 megawatts of aggregate potential capacity, marking a significant step in its transition to digital infrastructure.
- Capital Operations and Share Buybacks: CleanSpark completed a $1.15 billion convertible offering and repurchased $460 million in shares, bringing total buybacks to over $600 million since December 2024, reducing outstanding shares by approximately 20%, thereby enhancing shareholder value.
- Future Outlook and Market Demand: Management expects to shift from portfolio formation to commercialization milestones, emphasizing that the AI data center business will provide stable cash flows and high margins, and remains confident in signing contracts despite Bitcoin market volatility.
See More
CleanSpark Reports $378.7 Million Loss in Q1
- Financial Loss: CleanSpark reported a loss of $378.7 million in its fiscal Q1 2023, translating to a per-share loss of $1.35, which did not meet Wall Street expectations, indicating significant financial strain in the current market environment.
- Adjusted Loss: After accounting for non-recurring costs and asset impairments, the adjusted loss was $0.10 per share, which was worse than the analysts' forecast of $0.08 per share, highlighting ongoing challenges in the company's profitability.
- Revenue Shortfall: The company generated revenue of $181.2 million during the quarter, falling short of the $185.1 million expected by analysts, suggesting that weak market demand may have impacted sales performance.
- Market Expectations Missed: Given that the financial results did not align with analyst expectations, CleanSpark's stock price may face downward pressure, leading investors to question the company's future profitability and market strategies.
See More
CleanSpark Q1 Earnings Miss Expectations, Shares Drop
- Revenue Miss: CleanSpark reported Q1 revenue of $181.18 million, falling short of analyst expectations of $195.54 million, although it showed an 11.6% year-over-year increase, indicating a potential disconnect between growth and market expectations.
- Wider Loss Per Share: The company posted a loss of $1.35 per share, significantly worse than the anticipated loss of $0.15, highlighting challenges in cost management and profitability that could impact future funding capabilities.
- Stock Price Decline: CleanSpark shares fell 9.26% in after-hours trading to $7.50, nearing a 52-week low of $6.46, reflecting strong market reactions to the disappointing financial results and prompting investors to reassess their positions.
- Future Outlook: Despite the current financial setbacks, CleanSpark executives noted that their Bitcoin mining operations continue to generate durable cash flows, which are being redeployed into long-term infrastructure opportunities aimed at driving significant shareholder value over time.
See More
CleanSpark Reports Q1 Earnings Miss
- Earnings Miss: CleanSpark's Q1 GAAP EPS of -$1.35 fell short by $1.10, indicating significant challenges in profitability that could undermine investor confidence and affect stock performance.
- Revenue Growth Lags: The reported revenue of $181.2 million, while up 11.6% year-over-year, missed expectations by $6.53 million, suggesting that despite year-over-year growth, the company failed to meet market forecasts, potentially putting pressure on its stock price.
- Bitcoin Production Decline: CleanSpark produced fewer bitcoins in January, highlighting operational efficiency issues in the current market environment, which may impact future profitability and competitive positioning.
- Cautious Market Reaction: Following the earnings miss and decline in bitcoin production, the market is adopting a cautious stance towards CleanSpark's future performance, leading investors to reassess their strategies and potentially increasing stock price volatility.
See More
