SOS (SOS) H2 2024 earnings summary

Executive summary

• Total revenue for FY 2024 reached $231.4 million, up from $92.4 million in FY 2023, driven by a surge in commodity trading which now accounts for 92.6% of total revenue.

• Cryptocurrency mining revenue declined to $9.3 million from $18.9 million in FY 2023 due to a temporary shutdown of the Texas mining facility for upgrades.

• Operating loss widened to $21.6 million in 2024 from $4.8 million in 2023, with net loss from continuing operations at $16.2 million, compared to $6.4 million in 2023.

• The company completed a $7.1 million F1 offering and a $16.99 million private placement in 2024, supporting liquidity and operations.

• As of December 31, 2024, cash and cash equivalents stood at $239.5 million, down from $279.2 million at the end of 2023.

Financial highlights

• Commodity trading revenue soared to $214.3 million in FY 2024, up from $68.4 million in FY 2023.

• Hosting service revenue increased to $6.5 million in 2024 from $2.4 million in 2023.

• Cost of revenues rose to $224.4 million in 2024 from $78.2 million in 2023, reflecting higher trading volumes.

• Operating expenses increased to $28.6 million in 2024 from $19.0 million in 2023, mainly due to higher depreciation and share-based compensation.

• Net cash used in operating activities was $63.6 million in 2024, compared to net cash generated of $9.7 million in 2023.

Segment performance

• Commodity trading accounted for 92.6% of total revenue in 2024, with significant growth in product portfolio and domestic demand.

• Cryptocurrency mining contributed 4.0% of revenue, down from 20.4% in 2023, impacted by facility upgrades and regulatory shifts.

• Hosting services represented 2.8% of revenue, reflecting the ramp-up of the Wisconsin supercomputing center.

• Legacy data mining and insurance business continued to decline, contributing only 0.6% of revenue.