Soluna Holdings, Inc. (SLNH) AI Stock Analysis

• Market Cap: $9.76M
• Dividend Yield: N/A
• Average Volume (3M): 660.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.29
• Revenue Growth: 163.50%
• EPS Growth: 84.70%
• Country: US
• Employees: 40
• Sector: Technology
• Sector Strength: 45
• Industry: Software
• EPS (TTM): -9.55
• Shares Outstanding: 10,607,020
• 10 Day Avg. Volume: 602,286
• 30 Day Avg. Volume: 660,431
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.19
• Price to Cash Flow (P/CF): 31.60
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Soluna Holdings' stock score reflects ongoing financial challenges despite strong revenue growth. Technical analysis indicates a lack of clear upward momentum, while valuation metrics suggest caution. Positive corporate events provide some optimism, but the overall financial instability remains a significant concern.

Soluna Holdings, Inc. Business Overview & Revenue Model

Company Description

Mechanical Technology, Inc. engages in supplying if precision linear displacement solutions, vibration measurement and balancing systems, and wafer inspection tools. Its products consists electronic gauging instruments for position, displacement and vibration applications . The company was founded in 1961 and is headquartered in Albany, NY.

How the Company Makes Money

Soluna Holdings, Inc. generates revenue primarily through the operation and management of renewable energy-powered data centers. These facilities provide computing services to clients who require high-performance computing capabilities for various applications such as cryptocurrency mining, machine learning, and scientific research. The company earns money by leasing its data center capacity to these clients, charging for the energy usage and computing power provided. Additionally, Soluna may engage in partnerships with renewable energy producers to secure stable and cost-effective energy supplies, further enhancing its profitability. The focus on sustainable and renewable energy solutions not only reduces operational costs but also appeals to environmentally conscious customers, thereby driving demand for its services.

Soluna Holdings, Inc. Financial Statement Overview

Summary

Soluna Holdings is experiencing robust revenue growth; however, it continues to struggle with profitability and financial stability. The company faces significant operational and financial challenges, evidenced by negative profit margins, high leverage, and ongoing negative cash flows. While revenue growth is a positive sign, the company needs to focus on improving operational efficiency and financial management to enhance profitability and ensure long-term sustainability.

Income Statement

Soluna Holdings has shown revenue growth over the TTM (Trailing-Twelve-Months) period, with a significant increase to $39.87 million from $21.07 million in the prior year, indicating a positive growth trajectory. However, the company continues to face profitability challenges, with negative EBIT and net income margins, which highlight ongoing operational inefficiencies. The gross profit margin has improved to 26.48% in the TTM period, up from a negative margin in the previous year, but the net profit margin remains deeply negative.

Balance Sheet

The balance sheet reveals moderate leverage with a debt-to-equity ratio of 1.25 as of the TTM period, indicating potential financial risk. The equity ratio of 21.45% suggests a relatively low reliance on equity financing. The return on equity is negative, reflecting the company's ongoing losses. While the company has maintained a reasonable level of cash and short-term investments, the financial stability remains a concern due to high liabilities and negative equity performance.

Cash Flow

Cash flow from operations remains negative, posing a risk to the company's financial health. The free cash flow has improved slightly in the TTM period, but it is still negative at -$6.20 million. The operating cash flow to net income ratio is not meaningful due to negative figures, and the company is heavily reliant on financing activities to cover its cash shortfalls.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
39.87M	21.07M	28.55M	14.35M	9.60M	6.57M
	Gross Profit
10.55M	14.70M	-7.96M	6.28M	6.53M	4.37M
	EBIT
-14.55M	-20.24M	-84.79M	-4.48M	1.45M	259.00K
	EBITDA
-6.27M	-12.41M	-71.77M	-762.00K	-1.46M	346.00K
	Net Income Common Stockholders
-30.02M	-29.20M	-107.02M	-6.39M	1.95M	323.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.17M	6.37M	1.14M	10.26M	2.63M	2.51M
	Total Assets
5.60M	91.28M	84.96M	117.69M	8.65M	5.75M
	Total Debt
731.00K	19.77M	22.88M	8.54M	1.21M	947.00K
	Net Debt
-687.00K	13.41M	21.74M	-1.72M	-1.42M	-1.56M
	Total Liabilities
1.90M	37.92M	38.69M	26.71M	2.73M	1.92M
	Stockholders Equity
3.71M	26.51M	41.87M	90.99M	5.92M	3.83M
Cash Flow		Free Cash Flow
-6.20M	-15.69M	-69.51M	-51.72M	787.00K	206.00K
	Operating Cash Flow
-2.00M	-2.99M	-5.75M	5.55M	1.62M	289.00K
	Investing Cash Flow
-7.25M	-10.33M	-45.63M	-57.30M	-1.58M	-83.00K
	Financing Cash Flow
11.39M	21.86M	38.16M	59.38M	83.00K	-3.47M

Soluna Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLNH, the sentiment is Negative. The current price of 0.89 is below the 20-day moving average (MA) of 1.22, below the 50-day MA of 1.74, and below the 200-day MA of 3.40, indicating a bearish trend. The MACD of -0.26 indicates Negative momentum. The RSI at 29.08 is Positive, neither overbought nor oversold. The STOCH value of 11.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLNH.

Soluna Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RIOT	63 Neutral	$2.70B	22.42	4.35%	―	34.20%	―
Sector *	58 Neutral	$21.35B	9.96	-19.72%	2.38%	5.03%	-22.83%
MARA	55 Neutral	$4.61B	9.55	18.84%	―	69.38%	30.30%
SLNH	43 Neutral	$9.76M	―	-121.02%	―	163.50%	84.70%
ARBK	37 Underperform	$31.32M	―	242.25%	―	―	―

Soluna Holdings, Inc. Corporate Events

Soluna Holdings Discusses Strategy and Projects in AMA

Soluna Holdings, Inc. recently hosted an ‘Ask Me Anything’ session on January 16, 2025, where management addressed various operational topics. Key discussions included the company’s approach to resuming dividend payments based on cash flow evaluations, and their financing strategies for HPC data center projects. Updates were provided on projects like Project Grace and Project Kati, with tentative timelines and cost structures discussed. The session also highlighted the company’s strategy to optimize sustainable power access and data center development, aiming to enhance its value and industry position.

Soluna Holdings Advances with Key Projects and AI Deals

Soluna Holdings, Inc. has announced several corporate and operational developments including a milestone achievement of monetizing over 100 GWh of curtailed energy at Project Dorothy, equivalent to powering approximately 11,500 H100s for a year. The company has signed AI deals, completed convertible notes payoff, launched flexible financing for AI enterprises, and appointed a new advisory board member. Key project updates include the near completion of customer deployments at Project Dorothy, progress in substation interconnection planning for Project Dorothy 2, and ongoing design and negotiation efforts for Project Kati. Additionally, Soluna is expanding its AI and Bitcoin hosting capabilities and has reached agreements for further deployments with key customers.

Soluna Holdings Reduces Debt, Focuses on Growth

Soluna Holdings, Inc. announced the completion of converting and paying off its outstanding convertible notes, eliminating $772,000 of debt from its balance sheet. This strategic move enhances Soluna’s financial stability, allowing it to concentrate on advancing AI, renewable energy, and computing infrastructure projects, thereby positioning itself as a leader in sustainable high-performance computing.

Soluna Holdings Reports Record Revenue Growth and Expansion

Soluna Holdings, Inc. has reported significant growth with a $18.8 million increase in year-to-date revenue, reaching a record $29.7 million. The company, known for co-locating data centers with renewable energy plants, continues to expand its projects including new deployments and partnerships in Bitcoin mining and AI cloud services. Recent updates highlight progress in large-scale projects like Project Dorothy and new initiatives like Project Grace, demonstrating Soluna’s commitment to integrating renewable energy with computing resources.

Soluna Holdings Approves Stock Issuance and Plan Amendments

At a Special Meeting, stockholders approved the issuance of additional Common Stock under a Standby Equity Purchase Agreement and amendments to a Securities Purchase Agreement, potentially exceeding 20% of the total shares, while also amending the 2021 Stock Incentive Plan to alter stock award calculations. The proposals received significant support, reflecting investor confidence in these strategic financial moves.

Soluna Holdings Announces New Projects and Equity Agreement

Soluna Holdings, Inc., a pioneer in green data centers for Bitcoin mining and AI, has announced significant corporate and project developments in its latest update. The company has made progress towards accessing a $25 million equity agreement and introduced new projects like Grace and Ada, focusing on AI and renewable energy. Key upgrades in their sites, such as Project Dorothy and Project Sophie, highlight Soluna’s commitment to sustainable and efficient computing solutions. These advancements underline Soluna’s mission to harness renewable energy for high-performance computing applications.