HIVE’s QQ1 2026 results present a striking mix of elevated non-operating gains and stressed core mining economics. Revenue for the quarter was USD 45.61 million, up 41.5% year over year and 52.7% quarter over quarter, driven by the scale of its mining operations and crypto market activity. However, gross profit recorded a negative USD 6.19 million, yielding a gross margin of about -13.6%, underscoring that mining costs and/or crypto realizations did not align with revenue in the period. The headline profitability is amplified by a substantial contribution from total other income (USD 28.83 million), which, when combined with depreciation (USD 22.01 million) and stock-based compensation (USD 5.75 million), produced an EBITDA of USD 57.96 million and an operating income of USD 6.84 million. Net income reached USD 35.02 million with a diluted EPS of USD 0.18–0.19, reflecting a 974.8% YoY and 2,663.7% QoQ surge driven primarily by non-operating items rather than core mining profitability.
Liquidity and capital allocation actions were notable. Operating cash flow was USD 10.23 million, while capex totaled USD 47.36 million, contributing to a negative free cash flow of USD -37.13 million. Financing activity was a significant USD 52.85 million of net inflows, largely from a substantial equity issuance (USD 68.02 million in common stock issued), which supported capex and working capital needs but introduced meaningful share count growth (weighted average shares outstanding of 182.01 million; diluted 192.83 million). Cash and short-term investments at period end were USD 58.30 million in aggregate (cash USD 24.60 million), with total assets of USD 628.73 million against total liabilities of USD 68.21 million and stockholders’ equity of USD 560.52 million.
From an investor’s perspective, the key question is sustainability: can HIVE translate the current non-operating gains into durable, recurring cash flows while managing capex intensity and equity dilution? The QQ1 2026 performance signals that near-term earnings are highly sensitive to non-operating items and balance-sheet financing activity rather than a steady, mining-margin-driven trajectory. Management commentary (where available) and ongoing capital deployment will be critical to assess a longer-term path to profitability, balance-sheet strength, and return on invested capital.