A month has gone by since the last earnings report for Marathon Digital Holdings, Inc. (MARA Quick QuoteMARA - Free Report) . Shares have added about 4.6% in that time frame, outperforming the S&P 500.

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

MARA Holdings Reports Q1 Loss

Marathon Digital Holdings reported unimpressive first-quarter 2026 results, with both earnings and revenues missing the Zacks Consensus Estimate.

MARA’s first-quarter 2026 loss per share was 61 cents, wider than the Zacks Consensus Estimate of a loss of 46 cents and the year-ago loss of 40 cents per share. Revenues of $174.6 million missed the consensus mark of $192.7 million and declined 18.4% year over year.

The weaker results reflected lower bitcoin prices, higher operating expenses and unfavorable mark-to-market adjustments on digital assets. During the quarter, MARA increased its energized hashrate (EH) 33% year over year to 72.2 EH/s and mined 2,247 bitcoins (BTC).

MARA Expands Hashrate Amid Mining Pressure

MARA continued scaling its mining platform despite a tougher pricing environment. Energized hashrate rose to 72.2 EH/s from 54.3 EH/s in the year-ago quarter, while average daily bitcoin production reached 25 BTC.

The company won 653 blocks in the quarter, down 2% year over year. Higher global network difficulty offset gains from fleet expansion and reduced bitcoin mined per unit of energy consumed. MARA deployed roughly 5,000 new miners and acquired 2.4 EH of next-generation used Application-Specific Integrated Circuit miners to improve fleet efficiency at lower capital costs.

Marathon Revenues Fall on Bitcoin Weakness

Marathon’s revenues decreased to $174.6 million from $213.9 million in the prior-year quarter. Management attributed most of the decline to an 18% drop in average bitcoin prices, which reduced revenues by approximately $33.1 million.

Bitcoin production declined modestly from the year-ago period, contributing additional pressure on sales. Other revenues fell $3.7 million, primarily due to lower contributions from digital asset hosting services and other digital assets. Bitcoin holdings were 35,303 BTC at quarter-end, down from 47,531 BTC a year earlier.

MARA Costs Rise Despite Efficiency Gains

MARA’s purchased energy costs increased to $44.7 million from $43.5 million in the prior-year quarter, reflecting expanded owned mining operations and higher power usage. Purchased energy cost per bitcoin increased to $40,047 from $35,728 a year ago due to growth in network difficulty outpacing hashrate expansion.

Operating and maintenance expenses climbed to $30.6 million from $19.8 million due to higher miner repair costs, maintenance spending and labor expenses tied to a larger operational footprint. Third-party hosting and other energy costs rose to $70 million.

Despite these pressures, cost per petahash per day improved 3% year over year to $27.6. Management noted that the metric has improved 42% over the last 11 quarters, supported by operational efficiencies and hardware optimization.

Marathon Pursues AI Infrastructure Expansion

Marathon accelerated its transition toward digital infrastructure and AI-focused operations during the quarter. The company advanced its strategic partnership with Starwood to develop AI and critical IT infrastructure across powered sites.

Per management, around 90% of MARA’s non-hosted capacity is being evaluated for AI and critical IT conversion opportunities. The partnership structure is designed to monetize the company’s power and land portfolio while limiting incremental capital requirements.

The company also announced a definitive agreement to acquire Long Ridge Energy and Power after quarter-end. The asset includes a 505 MW combined-cycle gas turbine facility and 1,600 acres of land adjacent to MARA’s Hannibal operations. The acquisition is expected to expand MARA’s owned and operational capacity by roughly 65% and create a scalable AI and high-performance computing campus.

MARA Strengthens Balance Sheet, Cuts Debt

MARA reported a net loss of $1.3 billion compared with a loss of $533.4 million in the prior-year quarter. The wider loss primarily reflected a $1 billion unfavorable fair-value adjustment tied to declining bitcoin prices and restructuring charges of $45.9 million.

Adjusted EBITDA was negative $1 billion compared with negative $483.6 million a year ago. General and administrative expenses, excluding stock-based compensation, increased to $57.7 million from $36.9 million due to integration costs, higher personnel expenses and expansion initiatives.

The company reduced its workforce by 15%, a move expected to generate annualized savings of $12 million. During the quarter, MARA sold approximately $1.5 billion of bitcoin and used the proceeds to repurchase more than $1 billion of convertible debt at a discount and reduce outstanding borrowings. Combined cash and bitcoin holdings totaled approximately $2.9 billion at quarter-end.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

VGM Scores

Currently, Marathon Digital has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock has a grade of F on the value side, putting it in the bottom 20% quintile for value investors.

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

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, Virtu Financial (VIRT Quick QuoteVIRT - Free Report) , a stock from the same industry, has gained 5.2%. The company reported its results for the quarter ended March 2026 more than a month ago.

Virtu Financial reported revenues of $786.53 million in the last reported quarter, representing a year-over-year change of +58.2%. EPS of $2.24 for the same period compares with $1.30 a year ago.

Virtu Financial is expected to post earnings of $1.49 per share for the current quarter, representing a year-over-year change of -2.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +5.3%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Virtu Financial. Also, the stock has a VGM Score of D.