MARA (NASDAQ:MARA) Announces Earnings Results, Beats Expectations By $1.67 EPS

MARA (NASDAQ:MARA) issued its quarterly earnings results on Monday. The business services provider reported $1.28 earnings per share for the quarter, topping the consensus estimate of ($0.39) by $1.67, FiscalAI reports. MARA had a negative net margin of 429.71% and a negative return on equity of 26.05%. The company had revenue of $164.23 million for the quarter, compared to the consensus estimate of $183.24 million.

Here are the key takeaways from MARA’s conference call:

• Q3 revenue fell to $164.2 million from $252.4 million a year earlier, mainly because the average Bitcoin price was 37% lower. Net income of $632.1 million included an $885.3 million unrealized digital-asset gain, so reported profit was substantially boosted by a non-cash item.
• MARA received FERC approval for the Long Ridge acquisition and expects to close in the coming weeks. The plant currently operates at 485 MW, has about 70% of output hedged under long-term contracts, and has historically generated more than $140 million in annualized Adjusted EBITDA; the site also offers data-center development potential.
• The company is targeting two AI/HPC lease signings before year-end, but said timing could slip into next year as prospective tenants complete their processes. MARA described tenant discussions as advanced, but has not yet signed those leases.
• MARA said it has reduced debt by $1.4 billion, or 37%, since the start of the year, including repaying $750 million of Bitcoin-backed borrowing after quarter-end. The repayment released 18,750 pledged Bitcoin, and the board also authorized a discretionary share-repurchase program of up to $500 million.
• Exaion signed a four-year, $79 million GPU-as-a-service agreement with a U.S. customer under 100% take-or-pay terms. Management cited a pipeline exceeding $3 billion in total contract value, while noting that the pipeline is not contracted and roughly $1 billion is targeted for delivery by the end of 2027.

MARA Trading Up 4.6%

Shares of MARA stock opened at $6.64 on Tuesday. The stock has a market cap of $2.57 billion, a price-to-earnings ratio of -0.72 and a beta of 5.23. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 1.15. The company’s 50-day moving average price is $9.80 and its 200-day moving average price is $10.66. MARA has a twelve month low of $5.69 and a twelve month high of $16.62.

Wall Street Analysts Forecast Growth

MARA has been the subject of several research reports. JPMorgan Chase & Co. cut shares of MARA from an “overweight” rating to an “underweight” rating and decreased their price objective for the company from $13.00 to $11.00 in a research note on Monday, September 14th. Rosenblatt Securities cut their price objective on shares of MARA from $15.00 to $11.00 and set a “buy” rating on the stock in a research note on Tuesday. Weiss Ratings cut shares of MARA from a “sell (d)” rating to a “sell (d-)” rating in a report on Friday, October 23rd. Cantor Fitzgerald decreased their target price on shares of MARA from $14.00 to $12.00 and set an “overweight” rating for the company in a research report on Friday, August 7th. Finally, HC Wainwright assumed coverage on shares of MARA in a report on Friday, September 11th. They issued a “buy” rating and a $20.00 price target on the stock. Seven investment analysts have rated the stock with a Buy rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $17.33.

Insider Buying and Selling at MARA

In other MARA news, CEO Frederick Thiel sold 27,505 shares of MARA stock in a transaction on Monday, November 2nd. The stock was sold at an average price of $6.79, for a total value of $186,758.95. Following the sale, the chief executive officer owned 4,149,585 shares in the company, valued at $28,175,682.15. The trade was a 0.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Zabi Nowaid sold 8,376 shares of the company’s stock in a transaction on Friday, August 21st. The shares were sold at an average price of $12.00, for a total value of $100,512.00. Following the completion of the transaction, the general counsel directly owned 898,780 shares in the company, valued at approximately $10,785,360. This trade represents a 0.92% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 134,396 shares of company stock worth $1,311,490 over the last quarter. 0.97% of the stock is currently owned by company insiders.

Key Stories Impacting MARA

Here are the key news stories impacting MARA this week:

• Positive Sentiment: MARA sold 13,597 Bitcoin for about $1.1 billion and used $750 million to repay all its Bitcoin-backed loans, reducing debt and collateral risk. MARA sells Bitcoin and repays loans
• Positive Sentiment: The company is positioning its power assets for AI demand: it operates about 1 GW and targets a portfolio exceeding 4 GW, with two lease signings expected before year-end. A reported $79 million GPU contract adds a near-term commercial opportunity. MARA AI power capacity plans
• Neutral Sentiment: MARA authorized a $500 million share repurchase, potentially supporting the stock, though investors may weigh buybacks against the company’s significant Bitcoin sales and AI investment needs. MARA buyback authorization
• Negative Sentiment: Third-quarter revenue of $164.2 million missed analyst expectations. Bitcoin mining revenue fell 34% year over year despite production rising 5% to 2,247 BTC, while purchased energy costs increased 12%. The reported earnings beat appears less reflective of core mining performance, as Bitcoin valuation effects affected results. Mining revenue and costs
• Negative Sentiment: MARA says it may sell more Bitcoin to fund AI infrastructure, convertible notes, and buybacks. While this could finance diversification, continued sales reduce its Bitcoin holdings and exposure to potential price gains. MARA plans additional Bitcoin sales

About MARA

MARA Holdings, Inc, formerly known as Marathon Digital Holdings, is a digital energy and infrastructure company focused primarily on Bitcoin mining. It develops and operates data-center infrastructure and specialized computing systems used to validate transactions on the Bitcoin network and earn bitcoin rewards.

The company also works on energy-related strategies to support its computing operations, including using energy sources and infrastructure that can help power data centers. Its operations are concentrated in the United States, with expansion into international markets.

Marathon Patent Group, the company’s predecessor, was founded in 2010 and later shifted its focus to digital assets and Bitcoin mining.