Ionic Digital (IOND) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $49.0M, up 32% YoY; leasing contributed ~90% as operations shifted from cryptocurrency mining.

• Adjusted EBITDA rose to $35.0M from less than $1M YoY, reflecting the shift to higher-margin leasing.

• Focus remains on contracting Ward County and Midland capacity, with customer discussions and site preparation advancing.

• Development strategy prioritizes risk-adjusted returns, credible execution, strong counterparties and contract terms that protect capital returns.

Financial highlights

• Q3 revenue was $49.0M: $43.9M digital infrastructure leasing and $5.1M cryptocurrency mining.

• Gross profit was $39.3M and adjusted gross profit was $43.7M; net income was $17.4M and diluted EPS was $0.38.

• Adjusted EBITDA was $35.0M, with a 71% margin; nine-month Adjusted EBITDA was $108.0M.

• G&A was $26M, including $12.3M in direct-listing costs and $4.9M in stock-based compensation; excluding both, G&A was ~$9M.

• Q3 CapEx was $7M, including $6M at Ward County and $1M at Midland; most spending supported Ward County substation expansion.

Outlook and guidance

• FY2026 revenue guidance was reaffirmed at $190M–$195M: $175M leasing and $15M–$20M mining; midpoint revenue is $192.5M.

• FY2026 Adjusted EBITDA guidance is $137.5M–$142.5M, with a 72%–73% margin; CapEx guidance is $45M–$60M, excluding potential new-site acquisitions.

• Mining revenue is expected to meet or exceed the guidance midpoint, with near-break-even margins in Q4; mining equipment upgrades have stopped as sites are prepared for data center conversion.

• Cash rent is expected to reach $23M in Q4 2026 and $30M for FY2026, rising to $135M in 2027 and a $183M annualized run rate by February 2028, before escalators.

• Ward County's 377 MW available for development could be monetized in early 2028 as a turnkey build; a powered shell could be completed by late 2027, depending on customer structure and execution.