Cleanspark Share Price Dips 8% Despite Strong Q3 Earnings Growth

Core Insights - Cleanspark (CLSK) shares have declined by 7.9% since the release of its Q3 fiscal 2025 results, primarily due to a challenging macroeconomic environment and tariff uncertainties [1] - The company reported earnings of $0.78 per share for Q3 fiscal 2025, a significant improvement from a loss of $1.03 per share in the same quarter last year [9] Revenue and Production - Revenues for Q3 fiscal 2025 reached $198.6 million, representing a 90.8% year-over-year increase and surpassing consensus estimates by 0.11% [2][9] - Bitcoin production increased by 28% year-over-year, totaling 2,012 Bitcoin, with an average revenue per Bitcoin of $99,000, a 50% increase YoY [2] Profitability Metrics - Gross profit for Q3 fiscal 2025 increased by approximately $50 million year-over-year, achieving a profit margin of 55% due to higher Bitcoin prices and lower energy costs [4] - Operating income was reported at $246.2 million, a turnaround from a loss of $249.1 million in the previous year [5][9] - Adjusted EBITDA for the quarter was $377.7 million, compared to an adjusted EBITDA loss of $12.6 million in the same period last year [6] Operating Expenses - Operating expenses rose by 20.9% year-over-year to $36 million, with professional fees and payroll expenses as a percentage of revenue declining [5] Balance Sheet Overview - As of June 30, 2025, Cleanspark had cash and cash equivalents of $34.55 million, down from $96.9 million as of March 31, 2025 [7] - Total long-term debt was reported at $643.9 million, with total debt approximately $820 million [7] Future Earnings Estimates - The Zacks Consensus Estimate for Q4 fiscal 2025 earnings is 8 cents per share, reflecting a 129.63% year-over-year increase [8] - For fiscal 2025, the earnings estimate is 82 cents per share, with revenues projected at $769.59 million, indicating a year-over-year increase of 103.08% [10]