0001104659-25-104466
SEC filingRevenue doubled YoY driven by higher bitcoin prices and hashrate growth; net income turned positive despite a $158M contract settlement loss.
For the three months ended September 30, 2025, total revenue increased to $180.2 million from $84.8 million in the prior year, a 112% YoY increase. Bitcoin Mining revenue was the primary driver, rising 138% to $160.8 million, supported by higher average bitcoin prices ($114,361 vs. $61,133) and a 27.4% increase in bitcoin production to 1,406. Net income swung to $104.5 million from a loss of $154.4 million, benefiting from a $133.1 million gain on bitcoin fair value adjustments and a $28.9 million gain on equity method investments. However, the operating environment included a $158.1 million loss on contract settlement (Rhodium) and a $15.3 million impairment related to Corsicana Facility reallocation. Adjusted EBITDA improved to $197.2 million from a loss of $3.6 million, reflecting operational efficiency and $30.6 million in power curtailment credits.
Bitcoin Mining remains the dominant segment, contributing 89% of total revenue. The 138% revenue growth outpaced the 86% increase in cost of revenue (to $95.8 million), indicating margin expansion. The segment mined 4,362 bitcoin in the nine-month period, up 31.7% YoY, despite the April 2024 halving. Engineering revenue grew 52% to $19.1 million, largely from the E4A Solutions acquisition and faster project completions. Cost of revenue for Engineering was flat at $13.7 million, suggesting improved gross margins.
Management's MD&A outlines strategic priorities: expanding the Corsicana Facility to 1 GW for data center (AI/HPC) applications, scaling the Kentucky Facility to 160 MW, and executing on a disciplined capital allocation strategy. The Bitcoin Treasury Strategy retains most mined bitcoin to benefit from appreciation. Power curtailment programs (ERCOT, MISO) remain a key cost mitigation tool. No explicit financial guidance is provided, but the company expects to continue funding growth through ATM offerings and debt, with $854.0 million in total debt outstanding and $330.7 million cash on hand. Key risks include global network hash rate competition, regulatory developments, and supply chain constraints.
As of September 30, 2025, Riot Platforms reported cash and cash equivalents of $330.7 million and total debt of $839.7 million, a significant increase from $584.6 million at year-end 2024. The debt growth was primarily driven by the new $200 million credit facility with Coinbase (fully drawn) and borrowings under revolving credit facilities. Shareholders' equity stood at $3.50 billion, supported by ATM equity issuances and retained earnings. The company also held $1.82 billion in Bitcoin (unrestricted) and $376.4 million in restricted Bitcoin, contributing to a strong asset base.
Purchase commitments total $117.2 million, consisting of $105.4 million for miner purchases under the MicroBT master agreement (expected through first half of 2026) and $11.8 million for water supply infrastructure at the Corsicana Facility (through 2026). Additionally, contingent consideration liabilities of $9.2 million are recorded for the Block Mining and E4A acquisitions, with potential earn-out payments based on EBITDA milestones.
During the nine months ended September 30, 2025, Riot raised $195.2 million net through its August 2024 ATM program (16.1 million shares at $12.42 average). As of quarter-end, $162.6 million remained available under the program. There were no share repurchases or dividends. Capital expenditures totaled $118.9 million (24% of revenue), primarily for property and equipment, excluding deposits on miners. The company also acquired land for future data center expansion for $50.9 million.
Riot operates two reportable segments: Bitcoin Mining and Engineering. For Q3 2025, Bitcoin Mining generated external revenue of $160.8 million (up 138% YoY) with a gross profit of $65.0 million. Engineering contributed $19.1 million in external revenue (up 51% YoY), but segment revenue including intersegment was $25.9 million, yielding a gross profit of $12.2 million. The remaining performance obligations for Engineering totaled $161.6 million. Bitcoin Mining operations are concentrated in ERCOT (Texas) and MISO (Kentucky).
Riot reported net income of $27.6M for the nine months ended September 30, 2025, yet operating cash flow was deeply negative at -$467.4M. The divergence stems from large non-cash adjustments: $395.9M gain from change in fair value of bitcoin, $444.5M revenue recognized from bitcoin mined (non-cash under new accounting rules), and $92.6M stock-based compensation. These were partially offset by depreciation ($244.1M) and other items. Working capital changes used $21.4M.
Capex of $118.9M (purchases of property and equipment) plus $138.1M in deposits on equipment indicate continued heavy investment, though lower than prior period. Free cash flow is not explicitly stated but would be deeply negative given CFO and capex.
Investing activities generated $78.6M, largely due to $291M in bitcoin proceeds and $106M from sale of equity method investments, which offset equipment purchases and land acquisition.
Financing activities provided $443.8M, including $199.6M from ATM offerings, $200M from a credit facility, and $61M from revolving credit facilities, partly offset by debt repayments and $3.2M in share repurchases for tax withholding.
Overall, the company remains reliant on capital markets and bitcoin sales to fund operations and investment, with operating cash flow not yet covering cash needs.