Breaking Down Greenidge Generation Holdings Inc. (GREE) Financial Health: Key Insights for Investors

You're looking at Greenidge Generation Holdings Inc. (GREE) and seeing a confusing picture: a massive financial turnaround in Q3 2025, but a stock price that still looks shaky. Honestly, the headline numbers are impressive-the company flipped a year-ago loss into a net income of $11.96 million, driven by a 23.2% surge in total revenue to $15.22 million. That's a serious operational win, especially since their Power and Capacity revenue segment jumped 83% to $4.7 million, proving their vertical integration is defintely paying off beyond just Bitcoin mining.

But here's the quick math on the market's fear: despite this profitability, the stock still dropped over 28% month-to-date because investors are laser-focused on the remaining senior unsecured debt, which stands at about $38.0 million for the 2026 notes. You have a clear opportunity in the operational execution, but you also have a near-term risk in the capital structure (the debt they need to manage or restructure). We need to break down how sustainable that $11.96 million profit is and what actions you should take given the debt overhang and the new, landmark five-year air permit agreement that provides regulatory clarity.

Revenue Analysis

You're looking for the real story behind Greenidge Generation Holdings Inc. (GREE)'s top line, and the Q3 2025 results give us a clear, if still volatile, picture. The direct takeaway is that Greenidge's revenue is diversifying away from pure Bitcoin mining, with total revenue for the third quarter of 2025 hitting $15.22 million, a solid 23.2% jump year-over-year from the $12.35 million reported in Q3 2024.

That growth is defintely a win, but it's the shift in the revenue mix that matters most for long-term stability. Greenidge is a vertically integrated company, meaning it owns its power generation assets, and that's exactly where the major change is happening. The business now relies on three core segments, and the power generation side is rapidly gaining prominence. For the first nine months of 2025, total revenue reached $47.32 million, up from $44.74 million in the comparable 2024 period.

Here's the quick math on the Q3 2025 revenue breakdown, showing how the company is leveraging its power plant infrastructure in New York and other facilities to generate cash outside of the volatile cryptocurrency market:

• Datacenter Hosting: $6.30 million (approx. 41.4% of total revenue)
• Power and Capacity Sales: $4.74 million (approx. 31.1% of total revenue)
• Cryptocurrency Mining: $4.18 million (approx. 27.5% of total revenue)

The biggest change is in the Power and Capacity Sales segment, which includes selling electricity and capacity to the New York ISO (Independent System Operator) power grid. This segment saw a massive quarter-over-quarter surge, jumping 83% from Q2 2025 to Q3 2025. This is a crucial pivot, as it means the company can curtail its own energy-intensive mining operations during periods of high grid demand and sell the power for a higher margin instead. That's a smart way to de-risk the model. Datacenter hosting, where Greenidge provides infrastructure for other miners, also showed steady growth, hitting $6.3 million.

To be fair, the Cryptocurrency Mining segment, the company's self-mining operation, remained stable at $4.18 million in Q3 2025, but its relative contribution to the overall revenue mix is shrinking as the other two segments expand. This shift toward grid services and hosting makes Greenidge less of a pure-play Bitcoin miner and more of a diversified energy and technology company. This diversification is the core strategic move you need to track. For more on who is buying into this strategy, check out Exploring Greenidge Generation Holdings Inc. (GREE) Investor Profile: Who's Buying and Why?

What this estimate hides is the potential for power sales revenue to fluctuate wildly based on weather and grid pricing, but still, the segment mix is a clear sign of management's focus on non-crypto revenue. The table below illustrates the segment contributions for the quarter ended September 30, 2025.

Profitability Metrics

You're looking at Greenidge Generation Holdings Inc. (GREE) because the Q3 2025 headline numbers look incredible, but you need to know if that profitability is sustainable. The direct takeaway is this: Greenidge Generation Holdings Inc. delivered a massive GAAP net profit, but the core operational margins are razor-thin and significantly trail the industry average for pure-play Bitcoin miners.

The company reported total revenue of $15.22 million for Q3 2025, a 23.2% increase year-over-year. This growth, driven by datacenter hosting and power/capacity sales, reversed a prior-year loss, but the quality of that profit is what matters most for investors.

Gross, Operating, and Net Profit Margins

When we break down the Q3 2025 income statement, we see a stark difference between the top-line and bottom-line margins. This difference is critical for understanding the company's true operational efficiency versus its financial engineering success.

• Gross Profit Margin: At 27.6% ($\mathbf{\$4.2 \text{ million}}$ Gross Profit on $\mathbf{\$15.22 \text{ million}}$ Revenue), Greenidge Generation Holdings Inc.'s cost of revenue remains high, reflecting its vertically integrated model, which includes power generation.
• Operating Profit Margin: The margin drops sharply to a mere 2.0\% ($\mathbf{\$0.3 \text{ million}}$ Operating Income), indicating that selling, general, and administrative (SG&A) costs consume nearly all the gross profit.
• Net Profit Margin (GAAP): This surged to a phenomenal 78.6\% ($\mathbf{\$11.96 \text{ million}}$ Net Income). But here's the quick math: this was almost entirely due to an $11.5 \text{ million}$ non-recurring gain on a troubled debt restructuring.

Honestly, without that one-time financial gain, the operational net profit margin-what the business actually earned from its core activities-would have been closer to 3.0\% for the quarter. That's a defintely tight margin to manage against volatile energy and Bitcoin prices.

Profitability Trends and Industry Comparison

The trend in 2025 shows a move toward operational break-even, but the margins are not competitive with peers focused purely on mining. The industry average gross margin for publicly traded Bitcoin miners in Q1 2025 was around 53\%, with some peers reporting a Q3 2025 gross mining margin of 35\% to 56\%. Greenidge Generation Holdings Inc.'s $\mathbf{27.6\%}$ gross margin is substantially lower.

Here is a snapshot of the Q3 2025 performance against a representative industry average:

What this estimate hides is the value of Greenidge Generation Holdings Inc.'s diversified revenue streams. While the mining segment's profitability is low compared to peers, the power and capacity sales revenue surged 83\% to $\mathbf{\$4.7 \text{ million}}$ in Q3 2025, which gives the company a hedge against pure Bitcoin price risk.

Analysis of Operational Efficiency

The key to Greenidge Generation Holdings Inc.'s future profitability lies in cost management and leveraging its vertically integrated structure. The move to profitability, even with the non-recurring gain, suggests a successful debt restructuring strategy that reduced Senior Notes due 2026 to $\mathbf{\$38.4 \text{ million}}$. This debt reduction is a clear action that lowers future interest expense, which is a big deal.

Operational efficiency is also improving, as seen in the reduction of the active miner fleet's efficiency to 23.6 J/TH in Q2 2025, which means less power is used per unit of computing power. Still, the low 2.0\% operating margin shows that the non-cost of goods sold expenses-the overhead-are too high for the current revenue base. The company must either dramatically scale revenue or aggressively cut SG&A to make its operational margins competitive. You can dive deeper into the market's reaction to these moves by Exploring Greenidge Generation Holdings Inc. (GREE) Investor Profile: Who's Buying and Why?

Next step: Management needs to provide a clear roadmap for driving the Gross Profit Margin closer to the 40\% mark through increased power sales or lower mining energy costs.

Debt vs. Equity Structure

When you look at Greenidge Generation Holdings Inc. (GREE)'s capital structure, the first thing that jumps out is the negative shareholder equity, which makes their financing story complex. Simply put, the company has been focused on aggressive debt management to survive the volatility of the crypto and power markets, but the debt load remains substantial relative to their equity base.

The total debt on the balance sheet as of June 2025 stood at approximately $63.27 million USD. This is a mix of short-term and long-term obligations, but the most pressing element has been their senior unsecured notes.

• Total Debt (June 2025): $63.27M USD.
• Senior Unsecured Debt: Reduced to $44.6 million by Q2 2025.
• Debt-to-Equity Ratio: -1.03 as of June 30, 2025.

The Negative Equity Signal

The core issue is Greenidge Generation Holdings Inc.'s Debt-to-Equity (D/E) ratio, which was reported at -1.03 for the quarter ending June 30, 2025. A negative D/E ratio is a critical indicator, meaning the company has a deficit in shareholder equity-liabilities exceed assets. This is a much more precarious position than a high positive ratio.

Here's the quick math: a healthy power generation company (part of GREE's business model) might have a D/E ratio around 0.12, and a peer Bitcoin miner recently reported a D/E of 0.65. Greenidge Generation Holdings Inc. is not just highly leveraged; its equity cushion is gone. This is defintely a high-risk profile, forcing management to prioritize debt reduction over almost everything else.

Refinancing and Equity Strategy

To address this wall of debt, the company has been highly active in liability management. They successfully completed a tender and exchange offer for their 8.50% Senior Notes due 2026, with final results announced on November 6, 2025. This was a crucial move to push out their maturity schedule.

The exchange allowed holders to swap their old notes for a new series of 10.00% Senior Notes due 2030, extending the maturity by four years. This strategy bought them time, and the overall effort has reduced their debt obligations by $27.6 million since October 2024. That's a clear, positive action.

On the equity side, Greenidge Generation Holdings Inc. has been cautious about dilution. They reported no equity sales under their Equity Line of Credit (ELOC) during the first quarter of 2025, and they stated they have no current plans to use the ELOC to sell shares below $2.73 per share. This suggests a commitment to avoiding equity raises at distressed prices, but it limits their access to non-debt capital. The balance is clear: they are using debt restructuring to manage immediate risk while waiting for a higher share price to raise equity capital for growth. You can read more about this in the full post: Breaking Down Greenidge Generation Holdings Inc. (GREE) Financial Health: Key Insights for Investors.

Liquidity and Solvency

You need to know if Greenidge Generation Holdings Inc. (GREE) can cover its near-term obligations, and the hard numbers from the Q3 2025 fiscal year tell a story of tight liquidity, despite strategic debt reduction efforts. The company is operating with a working capital deficit, a situation driven by its capital structure and a significant debt maturity looming in 2026.

The most recent liquidity ratios, which measure the company's ability to pay short-term debts, are concerning. The Current Ratio, which compares current assets to current liabilities, is only 0.89. That's less than 1.0, meaning current liabilities exceed current assets. The Quick Ratio (acid-test ratio), which excludes less liquid assets like inventory, is even lower at 0.53. This is a red flag, honestly. It means Greenidge Generation Holdings Inc. (GREE) cannot cover its immediate obligations with its most liquid assets, like cash and accounts receivable.

Here's the quick math on what that 0.89 Current Ratio implies for working capital (Current Assets minus Current Liabilities): the company is running a negative working capital position. While this is not uncommon for companies with highly predictable cash flows, for Greenidge Generation Holdings Inc. (GREE), it highlights a capital management challenge, especially with a major debt hurdle ahead. This negative trend is a primary driver behind management's disclosure of 'substantial doubt about continuing as a going concern'.

The cash flow statement overview for the 2025 fiscal year shows the underlying pressure. Year-to-date operating cash flow through Q3 2025 was negative $(10.4) million. This means the core business activities-power generation, hosting, and mining-are not generating enough cash to fund themselves, forcing the company to rely on other activities to stay afloat. Investing activities, however, provided a significant cash inflow, largely due to asset sales, such as the $4.2 million received from the sale of the Mississippi facility.

Financing cash flow is where the company is actively managing its solvency risk. The primary concern is the $38.4 million principal outstanding on its 8.50% Senior Notes, which mature in October 2026. The company has been aggressive in reducing this debt, cutting its unsecured 2026 debt obligations by 47% through exchanges and tenders. This debt reduction is a clear, proactive action to extend the runway, but it's a temporary fix, not a permanent solution. You can read more about their long-term strategy in their Mission Statement, Vision, & Core Values of Greenidge Generation Holdings Inc. (GREE).

To be fair, the company ended Q3 2025 with $7.6 million in cash and $6.1 million in Bitcoin, which is a $3 million increase in total cash/Bitcoin holdings from the prior quarter. Still, the key risk is the massive debt maturity relative to that cash balance. They need to defintely execute their planned debt exchange strategies to extend that 2026 maturity, or the liquidity crunch will become a solvency crisis.

• Current Ratio: 0.89 (Q3 2025) signals negative working capital.
• Quick Ratio: 0.53 (Q3 2025) shows limited immediate cash to cover short-term debt.
• Operating Cash Flow: Negative $(10.4) million YTD 2025, indicating core business cash burn.
• Primary Concern: $38.4 million Senior Notes maturity in October 2026.

Next Step: Finance/Investor Relations: Monitor progress on the debt exchange offers and the finalization of the New York Title V Air Permit, as both are critical for long-term operational stability and investor confidence.

Valuation Analysis

Is Greenidge Generation Holdings Inc. (GREE) overvalued or undervalued? The short answer is that traditional metrics are nearly useless here because the company is unprofitable, but the analyst consensus points to a massive upside based on future growth, suggesting it's currently undervalued relative to its potential. The stock closed at around $1.32 on November 18, 2025, a steep decline of 51.15% over the last year, but the few analysts covering it see a path to over $4.00.

The Problem with Traditional Multiples

When a company is losing money, which is common in the capital-intensive Bitcoin mining and power generation space, you can't rely on the usual valuation tools. Greenidge Generation Holdings Inc. is a perfect example of this. Its Trailing Twelve Months (TTM) Earnings Per Share (EPS) is negative, at approximately -$0.0912, so its Price-to-Earnings (P/E) ratio is not applicable.

The Enterprise Value-to-EBITDA (EV/EBITDA) ratio, which strips out capital structure and taxes, also signals distress. As of September 2025, the EV/EBITDA stood at -135.16, driven by a negative TTM EBITDA of roughly -$0.60 USD.

Here's the quick math on the book value: The Price-to-Book (P/B) ratio for November 2025 is approximately -0.3866. A negative P/B means the company's liabilities exceed its assets, resulting in a negative shareholder equity (or book value), which is a serious red flag for financial health.

• P/E Ratio (TTM): N/A (Negative EPS)
• P/B Ratio (Nov 2025): -0.3866 (Negative Book Value)
• EV/EBITDA (Sep 2025): -135.16 (Negative EBITDA)

Stock Price Volatility and Dividend Status

The stock has been incredibly volatile over the last 52 weeks, which is typical for a crypto-adjacent company. The price has swung from a low of $0.58 to a high of $2.55, reflecting the market's wildly shifting sentiment on Bitcoin and the company's operational execution. That's a huge range. The stock's performance has defintely been a struggle, decreasing by over 50% in the past year.

As for income investors, Greenidge Generation Holdings Inc. is not a dividend stock. The TTM dividend yield as of October 31, 2025, is 0.00%, as the company is focused on reinvesting any capital back into operations or simply conserving cash, given its financial position.

Analyst Consensus and Price Targets

Despite the negative fundamental ratios, the few Wall Street analysts covering Greenidge Generation Holdings Inc. are highly optimistic, which is where the 'undervalued' argument comes from. The consensus rating is a 'Strong Buy' or 'Very Bullish.' This is a bet on a massive turnaround and future profitability, not current numbers.

The average 12-month price target is $4.00, with a high and low estimate that are both at $4.00, suggesting a potential upside of nearly +197.18% from the current price. What this estimate hides is the high-risk nature of the forecast; other technical analysis suggests a 'Strong Sell' with a price drop to $0.573. The risk is binary: huge upside if they hit their growth targets, or a steep drop if they fail to manage debt and operational costs.

You need to look past the current losses and decide if you believe their long-term strategy will pay off. For a deeper dive into the institutional interest, check out Exploring Greenidge Generation Holdings Inc. (GREE) Investor Profile: Who's Buying and Why?

Finance: Re-run a discounted cash flow (DCF) model using a $4.00 terminal value and a 15% discount rate to stress-test the analyst's optimism by next Friday.

Risk Factors

You need to look past the headline numbers on Greenidge Generation Holdings Inc. (GREE) because the core risks remain significant, particularly around debt maturity and the quality of recent profitability. While the company posted a strong Q3 2025 net income of $11.96 million, a closer look at the financials reveals substantial underlying pressure.

Honestly, the single biggest near-term risk is financial: the company's ability to continue as a going concern (a term for having enough cash to operate for the next year). Management itself has expressed substantial doubt about this, mostly because of the looming debt wall.

The October 2026 Debt Wall

The most immediate and material financial risk for Greenidge Generation Holdings Inc. is the maturity of its Senior Notes. As of September 30, 2025, the principal amount outstanding on the 8.50% notes due October 31, 2026, was still $38.4 million. The market is defintely reacting to this, which explains the stock's volatility even after a profitable quarter.

• Financial Risk: $38.4 million in Senior Notes principal matures in October 2026.
• Liquidity Strain: The company ended Q3 2025 with only $7.6 million in cash.
• Cash Flow Pressure: Year-to-date operating cash flow through Q3 2025 was a negative ($10.4) million.

To be fair, the company is actively working to mitigate this. They have reduced their debt and are pursuing public exchange offers and privately negotiated exchanges to push that maturity date out, plus they've already closed the sale of their Mississippi facility for $4.2 million. That's the clear action plan.

Quality of Earnings and Operational Risks

The Q3 2025 net income of $11.96 million was a massive swing, but it was not primarily driven by core operations. Here's the quick math: approximately $11.5 million of that net income came from a non-recurring gain on a troubled debt restructuring. That means the core operating income was a modest $0.3 million.

This reliance on non-operational gains is a red flag for sustainable profitability. Also, while they achieved a landmark agreement with the New York State Department of Environmental Conservation (NYSDEC) for a five-year Title V Air Permit, they still carry significant environmental liabilities totaling $30.4 million. This is a long-term operational and financial overhang that investors must track.

External and Industry-Specific Risks

The company is a vertically integrated power generator and Bitcoin miner, which exposes it to two volatile external factors: energy prices and cryptocurrency prices. Plus, the regulatory landscape for energy-intensive cryptocurrency mining is still evolving, even with the New York permit providing some local clarity.

The regulatory win with the five-year permit is a major mitigation strategy that stabilizes the New York operation. This is a huge deal for their long-term growth plans. Still, the stock's post-earnings action saw a 16.96% single-day drop, showing that market sentiment is still heavily influenced by the debt concerns, not just the operational improvements like the improved miner efficiency to 21.3 J/TH.

For a more comprehensive view of the company's financial standing, you should review the full analysis at Breaking Down Greenidge Generation Holdings Inc. (GREE) Financial Health: Key Insights for Investors.

Growth Opportunities

You're looking past the current stock volatility and asking the right question: what is the long-term growth story for Greenidge Generation Holdings Inc. (GREE)? The direct takeaway is that their future hinges less on pure Bitcoin mining volume and more on their strategic pivot to a diversified, vertically integrated power and hosting model, backed by significant debt reduction.

The company's fiscal 2025 third quarter results show this shift is working, with a dramatic turnaround to a net income of $11.96 million, a 287.8% reversal from the prior-year period loss. This is defintely a key data point. While the forecasted annual Earnings Before Interest and Taxes (EBIT) for the full year 2025 is still projected to be negative, around -$11 million, the momentum is clear.

Key Growth Drivers: Power and Hosting

The core growth driver isn't just mining; it's the power generation and datacenter hosting segments. Greenidge Generation Holdings Inc. is a vertically integrated company, meaning they own the power plants that run their datacenters and sell excess power back to the grid. This gives them a significant cost advantage over pure-play miners.

In Q3 2025, the power and capacity revenue segment saw an 83% jump to $4.7 million, showing heightened demand for their grid services. Plus, datacenter hosting revenue also grew to $6.3 million. This diversified revenue stream-power sales, hosting, and self-mining-is a competitive advantage that stabilizes earnings, especially when Bitcoin's price is volatile.

• Sell excess power to the grid during peak demand.
• Host other miners for predictable datacenter revenue.
• Reduce debt to free up future capital.

Strategic Initiatives and Financial De-risking

The company has been aggressively de-risking its balance sheet, which is crucial for long-term growth. They reduced their senior unsecured debt due in October 2026 to $38.0 million as of Q3 2025, a 47.2% reduction from the original principal. Here's the quick math: cutting debt that aggressively reduces future interest expense, making the path to sustained profitability much clearer.

Operationally, they are laser-focused on efficiency and asset optimization. They improved their active miner fleet efficiency by 10% to 21.3 J/TH (Joules per Terahash) in Q3 2025. They are also monetizing non-core assets, like the $3.9 million sale of a 7.5MW Mississippi mining facility, and exploring the sale of their 60MW South Carolina property to fund future, more efficient expansions.

Future Projections and Expansion

While near-term estimates can be tricky, the long view shows significant expected top-line growth. Analyst forecasts project Greenidge Generation Holdings Inc.'s annual revenue to hit approximately $263 million by the end of 2026. This is a substantial jump, driven by their strategy to acquire and develop new sites with low-cost power capacity.

The regulatory clarity at their flagship Dresden, New York facility is a major win. The historic agreement with the NYSDEC on a new five-year Title V Air Permit resolves a long-standing overhang and validates the facility as a model datacenter and power generation operation, positioning it for long-term stability. This is a big deal for investor confidence.

For a deeper dive into who is betting on this turnaround, you should check out Exploring Greenidge Generation Holdings Inc. (GREE) Investor Profile: Who's Buying and Why?

What this estimate hides, though, is the volatility of Bitcoin. The 2026 revenue projection assumes a stable or rising crypto market, but the diversified revenue streams offer a buffer. The company's new self-mined Bitcoin retention strategy, implemented in 2024, also means their balance sheet will increasingly reflect the value of the underlying asset, Bitcoin.