TLDR
- Hut 8 disclosed a Q4 net loss of $301.8M, reversing from a $152M gain in Q4 2024, primarily due to $401.9M in unrealized digital asset losses.
- Annual 2025 revenue increased 45% year-over-year to reach $235.1M, with gross margins expanding from 47% to 54%.
- Fourth quarter revenue totaled $88.5M, falling short of the $95.6M analyst estimate but exceeding Q3’s $83.5M.
- The firm is transitioning toward AI infrastructure and power generation, boasting a 9,520 MW energy development pipeline.
- HUT shares advanced approximately 2.4% following the earnings release despite underwhelming quarterly performance.
Hut 8 disclosed a significant net loss for Q4 2025, weighed down by substantial impairment charges on its cryptocurrency portfolio as Bitcoin depreciated roughly 25% during the period.
The company’s Q4 net income registered at -$301.8M, marking a stark contrast to the $50.1M profit achieved in Q3 and the $152M gain recorded in Q4 2024.
The primary driver behind this downturn was $401.9M in unrealized losses on digital assets. Notably, the same quarter one year prior saw the company book $308.2M in unrealized gains — representing a substantial year-over-year swing.
Quarterly revenue reached $88.5M, falling below the analyst consensus of $95.6M, though it represented growth from Q3’s $83.5M and Q4 2024’s $31.7M.
Despite the substantial reported loss, HUT shares increased 2.4% on Wednesday morning, indicating market participants viewed the results favorably beyond surface-level metrics.
For fiscal year 2025, Hut 8 achieved 45% revenue growth, reaching $235.1M compared to $162.4M in 2024. Gross margin performance also strengthened, expanding from 47% to 54%.
The full-year net loss totaled $248M, contrasting with 2024’s net income of $331.4M. This annual reversal stemmed largely from a $220M unrealized Bitcoin loss in 2025 versus a $509.3M unrealized gain in the previous year.
Adjusted EBITDA for the fourth quarter stood at -$347.8M, declining from $109M in Q3 and $310.6M in Q4 2024.
Compute Segment Drives Top-Line Expansion
The Compute division emerged as the primary growth driver, delivering $202.3M in fiscal 2025 revenue. This included $81.8M generated in Q4 alone, representing an increase from Q3’s $70M and Q4 2024’s $19.2M.
Compute revenue encompasses Bitcoin mining operations, GPU-as-a-Service offerings, and Data Center Cloud solutions — areas where the company is concentrating its strategic focus.
Power revenue declined to $4.97M in Q4, down from $8.37M in the previous quarter. Digital Infrastructure revenue similarly decreased to $1.64M from Q3’s $5.11M.
As of December 31, 2025, Hut 8’s combined cash and bitcoin holdings approximated $1.4B. This represents a decrease from the $1.6B market value reported on September 30, when the company possessed 13,696 BTC.
Massive 9,520 MW Energy Development Portfolio
CEO Asher Genoot highlighted Hut 8’s transformation toward a “power-first” operational model as the central narrative of 2025. The company divested its traditional ASIC compute operations and liquidated a 310 MW power generation asset portfolio.
Currently, the firm maintains a 9,520 MW energy development pipeline across multiple phases, including 330 MW actively under construction and 1,020 MW under active management.
River Bend, a significant facility within the pipeline, is projected to commence operations in Q2 2027.
Hut 8’s stock has appreciated 298% over the trailing twelve months, trading at a market capitalization of $6.4B, with a 52-week trading range spanning from $14.28 to $89.34.
Earnings per share registered at -$0.1101, surpassing analyst projections by 11.42%, though revenue fell short by 5.25%.
