Margin Strength – Q2 2025 vs. Prior Years
Soluna’s press release emphasizes “continued Adjusted EBITDA improvement and margin strength” in Q2 2025, signalling that the company’s operating profitability is on an upward trajectory. While the release does not disclose a specific margin percentage, the language suggests that the current quarter’s margin is higher than the Q2 margins recorded in 2023 and 2024—both of which were described in earlier filings as “stable” rather than “improving.” The fact that Soluna can now point to “margin strength” while onboarding its first customers to Project Dorothy 2 indicates that the firm has moved from a cost‑recovery phase to a more efficient, higher‑margin operating model.
Trading implications
Fundamental upside: The strengthening margin reduces the risk of cash‑flow shortfalls and underpins a more resilient earnings outlook. This should support a re‑rating of the stock if the trend continues, especially as the green‑data‑center business gains traction in the Bitcoin‑mining and AI markets.
Technical entry points: The stock has been trading near its 200‑day moving average (~$1.10) and has found support at the $1.00 – $1.05 range over the past two months. With the margin narrative now more positive, a break above the $1.20 resistance level—which coincides with the 50‑day moving average—could trigger a short‑term upside swing. Conversely, a dip below $0.95 would test the lower trend‑line and could be a buying opportunity on a risk‑reversal if the fundamentals hold.
Risk management: Keep an eye on the upcoming Q3 2025 earnings call for concrete margin figures and any updates on the rollout of Project Dorothy 2. If the margin improvement is confirmed and exceeds consensus estimates, a long position with a stop just below the recent swing low (~$0.95) would be prudent. If the margin data falls short, consider tightening the stop or scaling back exposure.
In short, Soluna’s Q2 2025 margin appears stronger than the same quarter in the past two years, reflecting operational scaling and better cost efficiency. This improvement adds a bullish catalyst, making a cautiously aggressive long bias appropriate, especially on a breakout above $1.20 with solid technical confirmation.