AI Takeaway
CleanSpark (CLSK) reported a net loss of $757.1M in Q1 2026, a dramatic reversal from $108.0M net income a year ago, driven by a massive surge in long-term debt (+178.6% YoY to $1.79B) and accelerating operating cash burn of $297.0M, while cash on hand more than doubled to $260.3M.
Cost of Revenue
$81.69M
-4.37% YoY
Operating Income
$-345.68M
-150.45% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Operating income collapsed from +$72.0M in Q1 2025 to -$662.2M in Q1 2026, a deterioration of over $734M YoY (-1020.4%), signaling significant cost escalation or large non-cash charges (e.g., impairments or depreciation) that overwhelmed revenue-side performance.
Source: Source: 10-Q Income Statement
D&A rose 53.1% YoY to $222.2M, up from $145.1M, indicating CleanSpark has been aggressively deploying capital into mining infrastructure, which is now flowing through the income statement as non-cash charges and pressuring reported earnings.
Source: Source: 10-Q Cash Flow Statement
Long-term debt surged 178.6% YoY to $1.79B from $641.7M, while total liabilities jumped 151.4% to $1.93B, reflecting aggressive debt-financed expansion. This has caused stockholders' equity to fall 47.8% to $986.2M.
Source: Source: 10-Q Balance Sheet
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Upgrade to unlockLong-term debt surged 178.6% YoY to $1.79B, pushing the debt-to-equity ratio to 1.95x. With operating cash flow deeply negative at -$297.0M, the company's ability to service this debt relies heavily on continued access to capital markets. A tightening credit environment or declining Bitcoin prices could severely impair debt serviceability.
Source: Source: 10-Q Balance Sheet & Cash Flow Statement
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Upgrade to unlockReported EPS of $-1.52 versus the $-0.58 analyst consensus — a -164.0% miss for Q2 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Cost of Revenue | $81.69M | $85.42M | -4.37% |
Operating Income | $-345.68M | $-138.02M | -150.45% |
Net Income | $-378.34M | $-138.79M | -172.60% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $2.91B | $2.66B | +9.65% |
Current Assets | $1.1B | $947.49M | +15.99% |
Total Liabilities | $1.93B | $766.51M | +151.44% |
Current Liabilities | $133.07M | $109.31M | +21.73% |
Stockholders' Equity | $986.16M | $1.89B | -47.84% |
Cash & Equivalents | $260.29M | $96.98M | +168.39% |
Long-Term Debt | $1.79B | $641.74M | +178.65% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $-296.96M | $-231.74M | -28.15% |
Investing Cash FlowYTD | $48.99M | $-315.88M | +115.51% |
Financing Cash FlowYTD | $465.01M | $523.75M | -11.22% |
Share BuybacksYTD | $460M | $145M | +217.24% |
D&AYTD | $222.19M | $145.13M | +53.10% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
ROE | -38.4% | — | — |
ROA | -13.0% | — | — |
Current Ratio | $8.259 | — | — |
Debt to Equity | $1.954 | — | — |
CleanSpark reported a net loss of $757.1M in Q1 2026, a dramatic reversal from $108.0M net income in Q1 2025, driven by a -$662.2M operating loss and surging long-term debt that nearly tripled YoY to $1.79B. On the positive side, cash on hand more than doubled to $260.3M, supported by $465.0M in financing inflows, and the current ratio remains healthy at 8.26x.
The $757.1M net loss appears driven by large non-cash charges — D&A alone surged 53.1% YoY to $222.2M — combined with the interest burden from $1.79B in long-term debt and ongoing operational cash burn of $297.0M. The Bitcoin halving in April 2024 also structurally reduced mining rewards, compressing revenue potential while costs continued to rise.
While CleanSpark's operating losses and debt load are concerning, the company maintains a strong current ratio of 8.26x and $260.3M in cash, suggesting adequate short-term liquidity. However, the long-term picture is more challenging, with total liabilities of $1.93B, negative ROE of -76.8%, and operating cash burn of $297.0M per quarter that relies on continued access to capital markets.
CleanSpark repurchased $460.0M in shares in Q1 2026, up 217.2% YoY, despite generating -$297.0M in operating cash flow — a capital allocation decision funded by debt and equity financing activities. This may reflect management's view that the stock is undervalued or an effort to offset dilution from equity issuances, but it raises questions about prioritization given the company's negative cash generation.
CleanSpark's long-term debt surged 178.6% YoY to $1.79B from $641.7M, pushing total liabilities up 151.4% to $1.93B and the debt-to-equity ratio to 1.95x. This aggressive debt-financed expansion has eroded stockholders' equity by 47.8% to $986.2M and will generate significant ongoing interest expense that further pressures the income statement.