Cipher Digital earnings beat, revenue misses as HPC starts up

Cipher Digital (CIFR) delivered a smaller-than-expected Q3 loss as the company's pivot to a high-performance compute business — parallel with a de-emphasis on bitcoin mining — proceeded.

The company reported revenue from its HPC business as its revenue from bitcoin mining tumbled.

Q3 GAAP EPS of -$0.22, beating the average analyst estimate of -$0.26, improved from -$0.65 in Q2 but declined from -$0.01 in last year's Q3.

Q3 revenue of $26.7M, trailing the $38.2M consensus, increased from $24.8M in the prior quarter and declined from $71.7M a year ago.

Revenue from bitcoin mining slumped to $20.9M from $24.8M in Q2 and $71.7M in the year-ago period. The company generated $5.85M in HPC leasing revenue, up from nothing in the prior quarter and a year ago.

Total costs and operating expenses declined to $98.6M from $103.4B in Q2 and $109.3M in last year's Q3.

That resulted in an operating loss of $71.9M vs. $78.5M in the previous quarter and $37.6M a year ago.

Adjusted EBITDA of -$9.96M, wider than the -$5.85M S&P Global Markets Intelligence consensus, compared with -$30.0M in Q2 and $40.8M in Q3 2025.

"Demand for compute is growing, and our relationships with leading hyperscalers and AI labs are deepening," said CEO Tyler Page. "We are adding new capacity to our pipeline, investing earlier in every project, and advancing design work before committing to new leases, so we are well positioned for our next phase of growth."

During Q3, Cipher Digital (CIFR) delivered first capacity at Black Pearl with additional capacity across all three of its campuses expected to come online in phases over the coming months.

The company also started development of lateral pipelines to support up to 2.5 gigawatts of potential on-site generation across multiple sites.

Cipher (CIFR) received conditional classifications across several pipeline sites through ERCOT’s Batch Zero process, including a conditional base load classification for 1 GW at Colchis and conditional studied load classifications with Provisional Controllable Load Resource designations for an additional 1.6 GW.

Furthermore, as previously announced, it expanded its Barber Lake lease to a 20-year term, increasing total contracted revenue at the location to ~$9.1B.

Cipher's (CIFR) wavered between gains and losses in premarket trading.