Key Highlights

  • Revenue was USD 48.99 million against a USD 47.25 million estimate, and diluted EPS was USD 0.38 against USD 0.64.
  • Digital infrastructure leasing Revenue was USD 43.884 million, while Cryptocurrency Mining revenue was USD 5.082 million against USD 37.096 million.
  • Net income was USD 17.438 million, including a USD 73.15 million cryptocurrency gain and a USD 65.901 million Warrant charge.
  • Cash was USD 381 million, 2,954 Bitcoin were valued at USD 247 million, and no borrowings were outstanding.

How did Ionic Digital (NASDAQ:IOND) arrive at diluted EPS of USD 0.38 in the third quarter? Revenue was USD 48.989 million, against USD 37.096 million a year earlier and an estimate of USD 47.25 million, and Net Income included a USD 73.15 million non-cash gain on the Fair Value of cryptocurrency, offset by a USD 65.901 million non-cash charge on warrants issued in June 2026. The company's diluted EPS compares with an estimate of USD 0.64 and a loss of USD 0.12 a year earlier.

Revenue: Leasing Replaces Mining

Digital infrastructure leasing revenue was USD 43.884 million, and cryptocurrency mining revenue was USD 5.082 million, against USD 37.096 million of mining revenue in the prior-year quarter. Leasing represented approximately 90% of total revenue, and the Chief Financial Officer said USD 7 million of the leasing revenue was on a cash basis, with cash rent ramping through February 2028. Nine-month revenue was USD 149.076 million, against USD 115.369 million.

Cost of mining revenues, excluding depreciation, was USD 5.046 million, against USD 26.579 million. Gross Profit was USD 39.263 million, against a gross loss of USD 6.7 million, and adjusted gross profit was USD 43.74 million, against USD 10.517 million.

Profit, Gains and the Warrant Charge

General and administrative expenses were USD 25.753 million, against USD 10.114 million, and direct listing fees and expenses were USD 12.288 million. Operating Income was USD 86.707 million, against an operating loss of USD 5.728 million. The change in fair value of warrant liabilities was a charge of USD 65.901 million, and the provision for income taxes was USD 6.671 million.

Net income was USD 17.438 million, against a net loss of USD 4.505 million, and net income available to common stockholders was USD 16.548 million after USD 0.89 million allocated to Series A Preferred Stock. Adjusted EBITDA was USD 34.988 million, against USD 0.154 million, which management tied to the shift toward leasing. Stock-based compensation was USD 4.908 million.

Cash, Bitcoin and Outlook

Cash and cash equivalents were USD 381.422 million at September 30, and 2,954 bitcoin were valued at USD 246.893 million, which the company described as approximately USD 630 million of Liquidity with no debt. Since quarter end it sold approximately 25% of its bitcoin for approximately USD 62 million. Capital expenditures were USD 7 million, mainly for substation equipment at Ward County.

Management reaffirmed its 2026 outlook: leasing revenue of USD 175 million, mining revenue of USD 15 million to USD 20 million, total revenue of USD 190 million to USD 195 million, adjusted EBITDA of USD 137.5 million to USD 142.5 million and capital expenditures of USD 45 million to USD 60 million. The provisional Batch Zero Baseload Pathway (b) classification from ERCOT covers a 466 gross MW request at Ward County, with final classification scheduled for December and energization of the Ward County capacity targeted for late 2027.

Figures Worth Comparing

Revenue of USD 48.989 million sits alongside adjusted EBITDA of USD 34.988 million, cash of USD 381.422 million and a 2026 total revenue range of USD 190 million to USD 195 million.

CEO Andy Stewart named leasing the remaining capacity across the Ward County and Midland sites as the priority, with about 500 gross MW of near-term power pipeline remaining. Dated items include ERCOT's final classification in December, energization at Ward County in late 2027 and the cash rent ramp through February 2028.