Back to top

Image: Bigstock

HIVE Q2 Loss Increases Year Over Year, Revenues Rise, Shares Fall

Read MoreHide Full Article

Key Takeaways

  • HIVE's Q2 revenue jumped on stronger digital mining and expanding HPC services.
  • Revenue growth was fueled from higher hash rate capacity, Paraguay Phase 3, and rising Bitcoin output.
  • HPC gains reflected AI cloud expansion, new contracts, Bell Canada ties, and Tier-3 upgrades.

HIVE Digital Technologies’ (HIVE - Free Report) shares have declined 2.2% since the company reported its second-quarter fiscal 2026 results on Nov. 17. The decline can be attributed to fluctuations in Bitcoin prices.

In the second quarter of fiscal 2026, HIVE reported a loss per share of 7 cents, which was wider than a loss of 6 cents reported in the year-ago quarter.

In the second quarter of fiscal 2026, revenues increased 285% year over year to $87.3 million. Sequentially, revenues increased 91%. The increase in revenues was primarily driven by digital currency mining and high-performance computing (HPC) services.

HIVE Top-Line Details

Digital currency mining revenues (94.1% of revenues) increased 295.2% year over year to $82.1 million. Sequentially, revenues increased 101.2%.  The growth was driven by the expanded hash rate capacity and the completion of Phase 3 in Paraguay. The growth was also driven by an 86.2% increase in average hashrate to 16.2 EH/s and slightly higher Bitcoin prices.

The Paraguay expansion contributed to higher Bitcoin production. In the reported quarter, HIVE produced 719 Bitcoin, up from 406 Bitcoin in the second quarter of fiscal 2025.

High performance computing (5.9% of total revenues) increased 7.6% quarter over quarter and 175% year over year to $5.2 million. Revenues increased as a result of growth in its AI cloud business, the deployment of more than 5,000 GPUs, new long-term AI compute contracts, collaboration with Bell Canada, and upgrades to Tier-3 data centers that boosted capacity, utilization and service demand.

HIVE Q2 Operating Details

HIVE reported a gross operating margin of $42.4 million, a substantial increase from $1.2 million in the year-ago quarter.

In the second quarter of fiscal 2026, Selling, General, and Administrative expenses totaled $7.80 million compared with $3.38 million in the year-ago quarter.

Income from loss of operations was $14.7 million compared to an operating income of $0.39 million in the year-ago quarter.

Adjusted EBITDA was $31.5 million compared with $5.6 million in the year-ago quarter.

HIVE Balance Sheet Details

As of Sept. 30, 2025, HIVE had cash of $22.6 million compared with $24.6 million as of June 30, 2025.

In the second quarter of fiscal 2026, net cash used in operating activities was $384,000 compared to net cash provided in operating activities of $10.22 million in the previous quarter.

Zacks Rank & Stocks to Consider

HIVE currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Finance sector are NerdWallet (NRDS - Free Report) , Ponce Financial Group (PDLB - Free Report) , and Leading Club (LC - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for NerdWallet’s fourth-quarter 2025 earnings is pegged at 17 cents per share, implying year-over-year growth of 1600%. NRDS shares have gained 2.1% in the year-to-date period.

The Zacks Consensus Estimate for Ponce Financial Group’s fourth-quarter 2025 earnings is pegged at 28 cents per share, indicating a year-over-year increase of 133.33%. PDLB shares have gained 16% in the year-to-date period.

The Zacks Consensus Estimate for Leading Club’s fourth-quarter 2025 earnings is pegged at 34 cents per share, indicating a year-over-year increase of 209.09%. LC shares have lost 1.3% in the year-to-date period.

Published in