HIVE’s QQ1 2026 results show a material step-up in revenue to USD 45.61 million, up 34.58% year-over-year and 52.69% quarter-over-quarter, underscoring continued scale in its cryptocurrency mining operations. However, gross profit remains negative at USD -6.19 million, with gross margin of -13.58%, as cost of revenue exceeded revenue in the period. The EBITDA figure stands at USD 57.96 million and the EBITDAR ratio is 1.27, driven largely by sizable other income, which implies a meaningful non-operating component to earnings in this period. Operating income is USD 6.84 million (operating margin ~14.99%), while net income is USD 35.02 million (net margin ~76.77%), aided by USD 28.83 million of total other income/expenses net. Earnings per share (diluted) is USD 0.18, with a weighted average diluted share count of 192.8 million.
From a cash flow perspective, operating cash flow was USD 10.23 million, but free cash flow ended negative at USD -37.13 million due to substantial investing activity (capex of USD -47.36 million) and other investing activities. Net cash provided by financing activities was USD 52.85 million, including equity issuances (common stock issued) of USD 68.02 million, facilitating a net increase in cash to USD 24.60 million at period end. The balance sheet shows a robust equity base (Total stockholders’ equity USD 560.52 million) with total assets USD 628.73 million and total liabilities USD 68.21 million. Net debt stands at USD 15.62 million, reflecting modest leverage given the capital-intensive mining footprint.
Overall, the QQ1 2026 quarter demonstrates significant revenue growth and a favorable EBITDA/operating income profile, supported by a strong balance sheet and funding activity. Investors should monitor crypto price volatility, miners’ operating efficiency, capital expenditure cadence, and the sustainability of non-operating income that materially boosted reported net income in this period.
Liquidity and cash flow:
- Net cash provided by operating activities: USD 10.23 million
- Capital expenditures: USD -47.36 million; Free cash flow: USD -37.13 million
- Net cash used in investing activities: USD -61.96 million; Net cash provided by financing activities: USD 52.85 million
- Change in cash: USD 1.23 million; Ending cash: USD 24.60 million
Balance sheet health:
- Total assets: USD 628.73 million; Total liabilities: USD 68.21 million; Total equity: USD 560.52 million
- Cash and cash equivalents: USD 24.60 million; Short-term investments: USD 33.69 million; Total cash & ST investments: USD 58.30 million
- Current assets: USD 180.65 million; Current liabilities: USD 52.81 million; Current ratio ~3.42x
- Net debt: USD 15.62 million (Debt: USD 40.23 million; Cash: USD 24.60 million; net debt after cash): modest leveraging given mining capex cycle
Key metrics (YoY/QoQ comparisons) follow the company-provided data: Revenue YoY +34.58%, QoQ +52.69%; Gross Profit YoY -82.22%, QoQ +48.83%; Operating Income YoY +210.83%, QoQ +133.85%; Net Income YoY +1113.78%, QoQ +2663.69%; EPS YoY +585.93%, QoQ +1819.19%.
Note: The period shows a substantial non-operating income component driving net income and an elevated EBITDA figure; management commentary on the drivers of this non-operating income is not included in the supplied data.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
45.61M
34.58%
52.69%
Gross Profit
-6.19M
-82.22%
48.83%
Operating Income
6.84M
210.83%
133.85%
Net Income
35.02M
1 113.78%
2 663.69%
EPS
0.19
585.93%
1 819.19%
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript highlights not provided in the data set. No direct management quotes or thematic summaries from the QQ1 2026 earnings call are available within the supplied materials. If you can provide the earnings call transcript or management slides, I can extract key themes (strategy, operations, market conditions) and quotes.
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Forward Guidance
There is no explicit forward guidance in the provided data. Based on the QQ1 2026 performance, several qualitative factors warrant close monitoring:
- Crypto market sensitivity: Revenue and asset value in crypto mining are highly sensitive to BTC/ETH price dynamics and network difficulty. Investors should track crypto price trends and network hash rate relative to HIVE’s mining capacity additions.
- Capex cadence: Capex of USD 47.36 million in QQ1 2026 supports scale-out of mining facilities in Canada, Sweden, and Iceland. The sustainability of this spending depends on the return profile of new mining hardware and any potential regulatory or tax changes affecting depreciation and asset utilization.
- Non-operating income reliance: Net income benefited from USD 28.83 million of other income/expenses net. Assess whether this is sustainable (e.g., crypto-specific gains, FX effects, or one-time accounting items) or recurring in future quarters.
- Liquidity runway: Ending cash of USD 24.60 million amid ongoing capex and a USD 52.85 million net financing inflow implies continued reliance on external funding to support expansion. Watch for debt maturities, financing terms, and potential equity dilution as a funding mechanism.
- Competitive positioning: The company’s equipment footprint and multi-jurisdiction mining strategy could offer resilience against localized regulatory risk but faces competition from other miners with potentially lower cost bases. Industry benchmarks on cost per hash, energy efficiency, and uptime will be critical going forward.
Recommendation: Given the strong EBITDA and healthy balance sheet, HIVE appears to be in a solid liquidity position to continue its growth path, provided crypto-market volatility is managed and non-operating income does not represent a material recurring driver.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
HIVE.V Focus
-13.58%
N/A
N/A
N/A
HUT.TO
1.21%
1.63%
-13.90%
-2.23%
DMGI.V
93.60%
-21.20%
-2.74%
-5.16%
FLT.V
-10.13%
-17.57%
-23.90%
-7.17%
CSTR.V
-9.37%
-36.00%
-7.16%
-6.75%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Moderate-to-positive longer-term investment thesis supported by a strong equity base, ongoing capacity expansion, and positive revenue momentum. However, the near-term earnings quality appears dependent on non-operating income and capital-intensive growth requires continued access to financing.
Key Investment Factors
Growth Potential
Scale-out of mining operations across Canada, Sweden, and Iceland; positive revenue trajectory YoY/QoQ supports a longer-term capacity expansion thesis if crypto prices stabilize and hash-rate growth remains favorable.
Profitability Risk
High dependence on crypto prices and network difficulty; potential regulatory changes impacting mining operations; dependence on non-operating income for net earnings in this quarter may not be repeatable; capex intensity could pressure near-term free cash flow.
Financial Position
Robust equity base and solid liquidity cushion (Total equity USD 560.52m; cash + ST investments USD 58.30m) with moderate net debt (USD 15.62m). Balance sheet supports continued investment in mining infrastructure.
Strong balance sheet with USD 560.52m in equity and low liabilities relative to assets.
Diversified geographic footprint across Canada, Sweden, and Iceland reducing single-market risk.
Healthy operating income and high EBITDA driven by non-operating income, suggesting potential for value-add from crypto holdings or one-time items.
Weaknesses
Negative gross profit in QQ1 2026 (USD -6.19m) signaling cost of revenue pressure or crypto-price-related dynamics.
Reliance on non-operating income to propel net income raises questions about sustainability of earnings quality.
Significant capex in the period (~USD 47.36m) with free cash flow negative (-USD 37.13m) may stress near-term liquidity if financing conditions tighten.
Opportunities
Further mining capacity additions could drive higher revenue and scale efficiencies.
Potential upside from crypto market recoveries and favorable mining economics (energy costs, hash-rate access, and technology upgrades).
Threats
Crypto price volatility impacting revenue and asset values.
Regulatory risk related to cryptocurrency mining and energy use in multiple jurisdictions.
Competition from other miners with lower costs or more favorable energy prices could compress margins if non-operating income normalizes.