AI Takeaway
CLSK reported a net loss of $378.7M in Q1 FY2025, a dramatic reversal from $246.8M net income a year ago, driven by surging costs and a massive 178.6% increase in long-term debt, while cash on hand rose 65.6% to $458.1M through aggressive financing activity.
Cost of Revenue
$95.62M
++36.04% YoY
Operating Income
$-316.55M
-250.76% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Operating income swung from a gain of $210.0M in Q1 FY2024 to a loss of $316.6M in Q1 FY2025, a deterioration of $526.5M YoY (-250.8%), signaling significant cost escalation or non-cash charges outpacing revenue-side gains.
Source: Source: 10-Q Income Statement
Cost of revenue rose 36.0% YoY to $95.6M from $70.3M, reflecting higher operational expenses likely tied to expanded mining infrastructure, energy costs, and depreciation as the company scales its bitcoin mining capacity.
Source: Source: 10-Q Income Statement
Long-term debt surged 178.6% YoY to $1.79B from $641.4M, and total liabilities jumped 156.6% to $1.94B, indicating CLSK is financing its growth heavily through debt, which has compressed stockholders' equity by 31.6% to $1.38B.
Source: Source: 10-Q Balance Sheet
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Upgrade to unlockLong-term debt increased 178.6% YoY to $1.79B, pushing the debt-to-equity ratio to 1.41. This level of leverage increases CLSK's vulnerability to interest rate changes and refinancing risk, especially if bitcoin prices decline and cash generation remains negative.
Source: Source: 10-Q Balance Sheet
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Upgrade to unlock| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Cost of Revenue | $95.62M | $70.29M | +36.04% |
Operating Income | $-316.55M | $209.98M | -250.76% |
Net Income | $-378.71M | $246.79M | -253.45% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $3.33B | $2.78B | +19.68% |
Current Assets | $1.47B | $1.23B | +20.03% |
Total Liabilities | $1.94B | $757.71M | +156.55% |
Current Liabilities | $139.5M | $96.68M | +44.29% |
Stockholders' Equity | $1.38B | $2.02B | -31.63% |
Cash & Equivalents | $458.1M | $276.6M | +65.62% |
Long-Term Debt | $1.79B | $641.43M | +178.56% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $-161.13M | $-119.45M | -34.90% |
Investing Cash Flow | $79.59M | $-255.95M | +131.10% |
Financing Cash Flow | $496.38M | $531.13M | -6.54% |
Share Buybacks | $460M | $145M | +217.24% |
D&A | $106.31M | $66.23M | +60.52% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
ROE | -27.4% | — | — |
ROA | -11.4% | — | — |
Current Ratio | $10.542 | — | — |
Debt to Equity | $1.406 | — | — |
CLSK reported a net loss of $378.7M in Q1 FY2025, a dramatic reversal from net income of $246.8M in Q1 FY2024. The swing was driven by a sharp deterioration in operating income, which fell from +$210.0M to -$316.6M YoY, alongside rising costs and interest expense from a rapidly expanding debt load.
CLSK's long-term debt surged 178.6% YoY to $1.79B, up from $641.4M a year ago, as the company aggressively financed its bitcoin mining expansion. Total liabilities rose 156.6% to $1.94B, and financing cash flows of $496.4M were the primary source of the company's cash growth during the quarter.
CLSK has strong short-term liquidity with a current ratio of 10.54 and $458.1M in cash, but its financial health is under pressure from a $378.7M net loss, -$161.1M in operating cash flow, and a debt-to-equity ratio of 1.41. The company is heavily reliant on capital markets rather than operations to fund its activities.
The biggest risks include the rapidly rising debt load (long-term debt up 178.6% to $1.79B), persistent negative operating cash flow (-$161.1M), and the dramatic swing to a $378.7M net loss. If bitcoin prices decline or capital markets tighten, CLSK's ability to service its debt and fund operations could be significantly challenged.
CLSK's cash and equivalents grew 65.6% YoY to $458.1M, up from $276.6M a year ago, primarily driven by $496.4M in financing cash flows. However, this cash growth is entirely debt- and equity-financing driven, as operating cash flow remained negative at -$161.1M.