A month has gone by since the last earnings report for Marathon Digital Holdings, Inc. (MARA Quick QuoteMARA - Free Report) . Shares have lost about 4.2% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Marathon Digital due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

MARA Holdings Reports Q2 Loss

MARA Holdings reported a quarterly loss of 81 cents per share, wider than the Zacks Consensus Estimate of a loss of 53 cents. In comparison, the company had reported a loss of $0.24 per share in the same quarter last year.

On a GAAP basis, however, MARA Holdings reported EPS of $1.84, a swing from a loss of 72 cents a year ago and a huge beat compared to the consensus expectation of a 19-cent loss. This profit was boosted in part by a $1.2 billion gain from the fair value of digital assets, signaling the power of MARA’s Bitcoin holdings amid rising crypto prices.

Net income exploded to $808.2 million, up 505% year over year, making this the company’s most profitable quarter ever. Adjusted EBITDA surged to $1.25 billion, reversing last quarter’s loss of $483.6 million and dwarfing the $125.5 million loss in the year-ago quarter.

Mining Milestones Cement MARA’s Operational Strength

MARA’s revenues surged 64% year over year to $238.5 million, handily beating estimates and setting a new all-time high for the company. This jump was fueled by mining 2,358 BTC during the quarter — up 3% from the first quarter — and significantly more than the year-ago quarter. The company’s block production also saw a dramatic 52% increase, hitting 694 blocks, including the most blocks ever mined in a single month in May.

Efficiency gains were equally striking. The energized hashrate grew to 57.4 exahashes per second (EH/s), an 82% increase from 31.5 EH/s a year ago, and up 6% sequentially. MARA deployed 30,000 new miners with top-tier energy efficiency of 18.3 joules per terahash (J/TH), reinforcing its focus on scaling sustainably.

Cost metrics improved across the board. The cost per petahash per day dropped 24% year over year to $28.7, while purchased energy cost per Bitcoin declined by 5.6% since the first quarter, to $33,735. Notably, energy cost per kWh at MARA’s owned sites stood at just $0.04, reflecting the company’s operational discipline.

In short, MARA is proving it’s not just about owning assets, it’s about running them with relentless efficiency.

MARA’s Balance Sheet Bolstered for Expansion

Marathon ended the quarter with a massive 49,951 BTC, which includes Bitcoin loaned, actively managed, and pledged as collateral. Coupled with unrestricted cash and equivalents, MARA’s total liquidity stood at an impressive $5.4 billion, a war chest that gives it room to maneuver aggressively in the crypto economy.

Further strengthening its financial position, MARA closed a $950 million upsized 0.00% Convertible Senior Notes offering due in 2032 and repurchased $19.4 million in 1% Senior Notes due 2026 at a discount. These moves show prudent capital structuring and opportunistic financing to support both short-term flexibility and long-term growth.

The company’s trailing 12-month adjusted Return on Capital Employed came in at 27%, highlighting its efficient capital reinvestment strategy. As a crypto miner with an asset-light monetization model, MARA’s ability to generate high returns on capital while maintaining operational agility is a key competitive advantage.

Looking ahead, the added funds position MARA to strategically invest in more Bitcoin, M&A opportunities, and potential debt buybacks, laying the foundation for sustained expansion, even in unpredictable market conditions.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 15.32% due to these changes.

VGM Scores

At this time, Marathon Digital has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, the stock has a grade of F on the value side, putting it in the lowest quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Marathon Digital has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Marathon Digital is part of the Zacks Financial - Miscellaneous Services industry. Over the past month, Bread Financial Holdings (BFH Quick QuoteBFH - Free Report) , a stock from the same industry, has gained 5.8%. The company reported its results for the quarter ended June 2025 more than a month ago.

Bread Financial reported revenues of $929 million in the last reported quarter, representing a year-over-year change of -1.1%. EPS of $3.14 for the same period compares with $2.66 a year ago.

For the current quarter, Bread Financial is expected to post earnings of $2.08 per share, indicating a change of +13% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.7% over the last 30 days.

Bread Financial has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.