Breaking Down CleanSpark, Inc. (CLSK) Financial Health: Key Insights for Investors

You're looking at CleanSpark, Inc. (CLSK) right now and wondering if the post-halving volatility is masking a deeper opportunity-and honestly, that's the right question to ask. The numbers for fiscal year 2025 are defintely showing a massive inflection point, but the story is complex. Analysts are projecting full-year revenue to hit around $775.56 million, translating to estimated earnings of $1.36 per share, a massive turnaround from the prior year. Here's the quick math: the company already posted a record Q3 2025 with $257.4 million in net income, driven by efficient mining and a growing Bitcoin treasury that currently holds 13,033 Bitcoin. But this estimate hides the near-term risk: the pivot. CleanSpark secured $1.15 billion in non-dilutive capital to accelerate its shift into the High-Performance Computing (HPC) and Artificial Intelligence (AI) data center market, a move that secures future growth but introduces execution risk. We need to see if their operational hashrate of 50 exahash per second (EH/s) can consistently fund this new, capital-intensive venture.

Revenue Analysis

You need a clear picture of where CleanSpark, Inc. (CLSK) is making its money right now, and the short answer is simple: it's Bitcoin mining, but a significant strategic shift is underway. The company is successfully executing a high-growth strategy in the digital asset space, evidenced by its record-breaking performance in the third quarter of fiscal year 2025.

CleanSpark, Inc.'s primary revenue stream is derived almost entirely from its core business as an American Bitcoin Miner®. This revenue is generated by mining Bitcoin (BTC) and is directly tied to two key factors: the company's operational hashrate (the computing power dedicated to mining) and the market price of Bitcoin. For the three months ended June 30, 2025 (Fiscal Q3), CleanSpark reported a quarterly revenue of $198.6 million. That's a massive jump. Here's the quick math: this represents a 91% year-over-year revenue growth rate compared to the $104.1 million reported in the same period last year.

The growth is defintely a result of scaling operations and favorable market conditions. The company produced 2,012 Bitcoin in Q3 2025, which was a 28% increase year-over-year, and the average revenue per Bitcoin mined was approximately $99,000, a 50% increase from the prior year. This shows strong operational efficiency, which is crucial in a post-halving environment where mining rewards are cut in half.

While Bitcoin mining is the dominant segment, a major change is the strategic pivot into the data center business for Artificial Intelligence (AI) and High-Performance Computing (HPC). This move is designed to diversify and de-risk the company's future revenue streams, creating a second engine of growth that extends beyond the cyclical nature of crypto prices.

In October 2025, CleanSpark, Inc. acquired a 271-acre site in Austin County, Texas, with 285 MW of power specifically for its first dedicated AI data center. This is not just talk; it's a concrete investment in a new business segment. The current revenue contribution from this new segment is minimal, but analysts are watching it closely, as this diversification positions CleanSpark, Inc. to capitalize on the multi-trillion-dollar AI market.

For the full fiscal year 2025, analysts are projecting total revenue to hit approximately $770.6 million, with Q4 2025 revenue estimated at $232.3 million. This anticipated Q4 figure would represent a projected year-over-year growth of 167.4%.

You can see the revenue picture clearly in the table below, mapping the actual Q3 results against the full-year projections:

What this estimate hides is the execution risk in standing up the AI data center business, but the core Bitcoin mining operation is currently a powerhouse.

The key takeaways for your investment decision are:

• Bitcoin mining is the current engine, driving 91% Q3 revenue growth.
• The new AI data center segment is the future hedge and growth catalyst.
• Full-year revenue is tracking toward $770.6 million.

If you want to dig deeper into the institutional interest driving this valuation, check out Exploring CleanSpark, Inc. (CLSK) Investor Profile: Who's Buying and Why?

Next step: Look at the cost of revenue to see how profitable this growth really is.

Profitability Metrics

You're looking for a clear signal on CleanSpark, Inc. (CLSK)'s financial strength, and the numbers from the 2025 fiscal year tell a compelling story of operational efficiency separating it from the pack. The direct takeaway is this: CleanSpark has successfully navigated the post-halving environment with best-in-class cost management, translating into significantly higher margins than most competitors.

For the Trailing Twelve Months (TTM) ending June 30, 2025, CleanSpark's core profitability metrics are strong. The Gross Profit Margin stood at 52.1%, and the Operating Margin was a healthy 52.93% as of November 2025. This shows that after covering the direct costs of mining (like electricity and hosting), the company is retaining over half of its revenue, and even after accounting for selling, general, and administrative expenses, the operating profit remains robust. That's a huge shift from the volatility of previous years.

The Net Profit Margin for the TTM ending June 30, 2025, was 46.36%. To be fair, quarterly net income in this industry can be wildly volatile, often showing massive non-cash gains or losses due to the accounting treatment of Bitcoin holdings (changes in the fair value of digital assets). For example, in the third quarter of fiscal year 2025 alone, CleanSpark reported $257.4 million in Net Income on $198.6 million in revenue, resulting in an over 100% net margin-a clear sign of a one-time accounting boost from a rising Bitcoin price. That's why the TTM figure gives you a much cleaner view of true, sustained profitability.

When you look at industry comparisons and operational efficiency, CleanSpark shines. The average cash cost to produce one Bitcoin among publicly listed miners in late 2025 reached around $74,600. CleanSpark's marginal cost per coin was dramatically lower, at approximately $34,000 in Q1 FY2025 and still a very competitive $44,806 in Q3 FY2025. This cost advantage is the single most important driver of their superior margins.

Here's the quick math on their operational edge:

• CleanSpark's Q3 FY2025 Gross Margin: 54.6%
• Riot Platforms' Gross Profit Margin: 35.6%
• Core Scientific's Gross Profit Margin: 8.6%

This efficiency is a direct result of their vertically integrated model and their focus on energy-efficient hardware, driving their fleet efficiency down to 16.15 J/Th in Q1 FY2025. This is not just a good number; it's a structural advantage. CleanSpark's Gross Profit Margin of 54.6% in Q3 2025 is defintely a standout performance in a post-halving world where margins are naturally squeezed. This is where the rubber meets the road for a mining company, and CleanSpark is proving its model works exceptionally well. You can dive deeper into the full financial picture in the full post: Breaking Down CleanSpark, Inc. (CLSK) Financial Health: Key Insights for Investors.

Next Step: Focus your due diligence on the sustainability of their low energy costs and their capital expenditure plan for maintaining that best-in-class fleet efficiency.

Debt vs. Equity Structure

CleanSpark, Inc. (CLSK) maintains a relatively conservative balance sheet, especially when compared to the broader, highly-leveraged Bitcoin mining sector. Your direct takeaway is this: as of the end of fiscal Q3 2025, CleanSpark, Inc.'s Debt-to-Equity (D/E) ratio stood at approximately 0.38, indicating a healthy reliance on shareholder capital over debt to finance its operations and aggressive expansion plans.

This D/E ratio is a critical measure of financial leverage, showing that for every dollar of equity, the company has only $0.38 in debt. Here's the quick math on the components from the June 30, 2025, balance sheet:

• Total Stockholders' Equity: approximately $2.14 Billion
• Total Debt (Short-Term and Long-Term): approximately $820.3 Million

The total debt breaks down into a manageable mix of short-term and long-term obligations. Specifically, long-term debt, net of discounts and issuance costs, was around $643.9 Million, with short-term debt and capital lease obligations at approximately $176.4 Million as of June 2025. This low leverage profile is a deliberate strategic choice, offering a significant buffer against the volatility inherent in the crypto market, unlike many peers who have historically run D/E ratios well above 2.0, a level often considered unsustainable in this industry.

The company's financing strategy is a clear balancing act between debt and equity, designed to fund its pivot into high-performance computing (HPC) and AI data centers. In November 2025, CleanSpark, Inc. completed a transformative financial move: the issuance of $1.15 Billion in 0.00% Convertible Senior Notes due 2032. This debt, which carries zero interest, provides a substantial, non-dilutive capital injection to fund expansion into new energy and land portfolios, and to repay outstanding Bitcoin-backed credit lines.

To be fair, convertible notes introduce potential dilution risk, as they can be converted into common stock. But, CleanSpark, Inc. simultaneously repurchased approximately 30.6 million shares of common stock for about $460 Million. This share buyback directly offsets a significant portion of the potential dilution, showing management's confidence in the stock's current valuation and their commitment to managing shareholder value while raising growth capital. This dual action is a sophisticated way to use debt for growth while using equity to manage the resulting dilution risk. You can read more about the strategic direction that requires this capital in our Mission Statement, Vision, & Core Values of CleanSpark, Inc. (CLSK).

The industry context is crucial here: total debt among Bitcoin miners has surged to an estimated $12.7 billion as of October 2025, as firms race to fund next-gen hardware and AI infrastructure. CleanSpark, Inc.'s D/E ratio of 0.38, even after the new debt issuance, still positions the company as one of the most financially disciplined players, prioritizing a strong balance sheet over maximum leverage. They are using debt as a tool for accelerated, strategic growth, not as a crutch for survival.

Liquidity and Solvency

You want to know if CleanSpark, Inc. (CLSK) has the cash to cover its near-term debts while fueling its aggressive expansion. The short answer is yes, but the composition of their liquid assets is what really matters here. As of the close of fiscal Q3 2025 (June 30, 2025), the company's liquidity position is exceptionally strong, driven by its massive Bitcoin treasury.

The company's current assets totaled $1.21 billion against current liabilities of $276.8 million. This results in a Current Ratio (current assets divided by current liabilities) of approximately 4.37. This ratio is a clear sign of excellent short-term health, meaning CleanSpark, Inc. could cover its immediate obligations more than four times over. The Quick Ratio, which is often a more stringent test, is nearly identical at 4.37.

Here's the quick math on why those ratios are so high:

• The Bitcoin treasury is valued at $1.08 billion as of June 30, 2025, and is highly liquid for a Bitcoin miner.
• Working capital (current assets minus current liabilities) stood at a robust $933.3 million.

This liquidity is a significant strength, allowing the company to navigate the capital-intensive nature of the Bitcoin mining industry without relying on distressed sales or high-interest debt.

Cash Flow: The Full Picture

When you look at the cash flow statement, you see the dynamics of a high-growth, asset-heavy business. While the GAAP (Generally Accepted Accounting Principles) operating cash flow (OCF) for Q3 2025 was a negative $109.89 million, this figure is often distorted by non-cash items like depreciation and non-cash Bitcoin gains/losses typical for miners.

A more operational view shows the strength: CleanSpark, Inc. reported generating $78 million in cash from its mining operations, net all cash expenses, in Q3 2025. This highlights that the core business is self-funding its operations, which is defintely a critical milestone for a scaling miner. Still, the Investing Cash Flow (CFI) is a significant outflow, as the company continues to spend heavily on new mining equipment and data centers to hit its hashrate targets.

The Financing Cash Flow (CFF) for Q3 2025 was a positive $172.76 million. This inflow was largely capital raised to fund the aforementioned expansion. More recently, in November 2025, the company closed a major CFF event: a $1.15 billion offering of zero-coupon convertible senior notes. This structure avoids regular cash interest payments, preserving operating cash flow, and a significant portion-$460 million-was used to repurchase common stock, mitigating potential shareholder dilution. This move is a clear, decisive action to secure long-term growth capital while managing the equity side of the balance sheet.

For a complete, in-depth analysis of these figures, you can read the full post here: Breaking Down CleanSpark, Inc. (CLSK) Financial Health: Key Insights for Investors.

Valuation Analysis

Is CleanSpark, Inc. (CLSK) overvalued or undervalued? The short answer is that traditional trailing-twelve-month (TTM) metrics suggest it's pricey right now, but a look at forward earnings shows a significant potential for being undervalued, especially when you factor in the strong analyst consensus.

As a seasoned analyst, I look past the sticker shock of a high Price-to-Earnings (P/E) ratio, which measures the current stock price relative to trailing earnings. CleanSpark's TTM P/E ratio sits at about 49.9 as of November 2025, which is high and signals a growth stock where investors are pricing in massive future earnings. But here's the quick math: the Forward P/E, based on next year's expected earnings, drops sharply to just 11.55. That's a fundamentally different story, suggesting a huge earnings ramp-up is anticipated. A low forward P/E like that makes the stock look defintely cheap relative to its expected profit.

Other key metrics provide a clearer picture of the balance sheet's health. The Price-to-Book (P/B) ratio, which compares the stock price to the company's book value (assets minus liabilities), is a modest 1.75. For a high-growth technology and energy company, that's a reasonable number, telling you that the market isn't wildly inflating the value of the physical assets. Also, the Enterprise Value-to-EBITDA (EV/EBITDA) ratio-a measure of total company value to its operating cash flow before non-cash charges-is only 8.18. This is a very healthy figure for a company in a capital-intensive sector like Bitcoin mining, suggesting a solid, efficient operation.

• TTM P/E: 49.9 (High, typical for a growth play).
• Forward P/E: 11.55 (Low, signals strong expected earnings growth).
• P/B Ratio: 1.75 (Reasonable valuation on assets).
• EV/EBITDA: 8.18 (Efficient use of capital for the sector).

The stock price trend over the last 12 months has been a roller coaster, which is standard for the Bitcoin mining space. The stock has decreased by 27.68% over the past year, with a sharp drop of 47.69% in the last month alone, bringing the price to around $10.87 as of November 2025. The 52-week range shows the volatility, trading between a low of $6.45 and a high of $23.61. This recent sell-off, while painful, is what creates the potential opportunity, pushing the stock to the lower end of its historical trading range.

You won't find a dividend here, so don't look for passive income. CleanSpark, Inc. does not currently pay a regular dividend, with the TTM dividend payout being $0.00 and the dividend yield at 0.00%. This is normal for a company aggressively reinvesting its capital into growth-they're focused on expanding their mining capacity, not returning cash to shareholders yet. The focus remains on accretive growth, which is what you want to see in this industry.

Wall Street analysts are clearly bullish on the future, despite the recent price action. The consensus rating from analysts is a 'Moderate Buy' or 'Strong Buy'. The average analyst price target for CleanSpark, Inc. is around $24.23, implying a substantial upside of over 122% from the current price. The range is wide, from a low of $14.00 to a high of $30.00, but the average target is well above the current trading level, indicating a strong belief in the company's ability to execute on its expansion plans and capitalize on the Bitcoin market. For a deeper dive into the company's strategic position, you can check out Breaking Down CleanSpark, Inc. (CLSK) Financial Health: Key Insights for Investors.

Risk Factors

You're looking at CleanSpark, Inc. (CLSK) because the growth story is compelling, but every high-growth sector, especially Bitcoin mining, comes with a clear set of risks. The direct takeaway is that while management has been proactive in mitigating operational risks like power costs, the company remains highly exposed to market volatility and specific financial reporting challenges tied to its capital structure.

The most significant external risk is the price of Bitcoin itself. CleanSpark holds a substantial Bitcoin treasury, valued at over $1.08 billion as of June 30, 2025. Here's the quick math: a mere 10% drop in Bitcoin's market price could wipe out approximately $135 million from the fair value of that treasury. That's a massive swing, and it's why the stock often tracks the coin's volatility with a high beta.

Operational risks are also a constant headwind. The Bitcoin Halving has intensified the industry's focus on efficiency, and rising energy costs are a material threat. Costs of revenues jumped to $90.1 million in the second quarter of fiscal year 2025, up significantly from $45.2 million in the prior year period, largely due to higher energy prices. Still, the company is fighting this with superior fleet efficiency, which improved to below 17 joules per terahash by April 2025. That's defintely a competitive advantage.

From a financial and strategic standpoint, two specific risks stand out:

• Convertible Note Dilution: The recent $1.15 billion capital raise via 0.00% convertible senior notes is a double-edged sword. While it fully funds their expansion, the potential for future shareholder dilution is real, even with the high conversion premium.
• Accounting Complexity: The accounting treatment of the 2030 Notes-a long-term debt obligation-is a technical but crucial risk. This treatment has the potential to artificially lower reported income and Earnings Per Share (EPS), which can spook the market despite strong operational performance.

To be fair, management has clear mitigation strategies. They are diversifying operations across four states to manage regional power cost spikes and securing equipment in advance to counter potential tariff impacts. Plus, the strategic pivot into the AI and High-Performance Computing (HPC) data center market, funded by the new capital, is a long-term play to diversify revenue beyond pure Bitcoin mining. You can read more about the full financial picture in our deep dive, Breaking Down CleanSpark, Inc. (CLSK) Financial Health: Key Insights for Investors.

The table below summarizes the key financial and operational risks and the company's stated counter-measures, based on fiscal year 2025 data:

The next step for you is to monitor the execution of the AI/HPC pivot and the actual impact of the 2030 Notes accounting on the upcoming Q4 2025 report. Finance: track the debt-to-equity ratio against the convertible note conversion price by the end of the year.

Growth Opportunities

You're looking for the next leg up for CleanSpark, Inc. (CLSK), and honestly, the story has moved beyond just Bitcoin mining. The company is executing a smart, two-pronged strategy: doubling down on their core competency while pivoting into the booming Artificial Intelligence (AI) and High-Performance Computing (HPC) data center market. It's a classic case of leveraging existing infrastructure-their power and land portfolio-to tap into a secular growth driver that is less cyclical than crypto alone.

The near-term numbers for the 2025 fiscal year (FY2025) tell a story of significant scale-up. The Zacks Consensus Estimate projects full-year revenue for CleanSpark, Inc. (CLSK) to hit approximately $769.59 million, a massive jump from the prior year, with earnings per share (EPS) anticipated to be around $0.82 per share. This operational strength is underpinned by their success in Bitcoin mining, where they achieved a 50 exahash per second (EH/s) operational hashrate in June 2025, a key milestone for self-operated facilities.

The real shift, and the biggest opportunity, is the move into AI infrastructure. This is their second engine of growth. They are converting from a pure-play miner to a diversified digital infrastructure company.

• AI Data Center Expansion: Acquired a 271-acre site in Austin County, TX, which includes 285 megawatts (MW) of power capacity specifically for their first dedicated AI data center campus (October 2025).
• Strategic Partnership: Formed a collaboration with Submer to design and build efficient AI data centers using immersion cooling technology, a critical innovation for high-density computing.
• Capital Fuel: Completed a $1.15 billion offering of 0.00% Convertible Senior Notes due 2032 in November 2025, securing growth capital for the foreseeable future.

Here's the quick math on future revenue: Analysts are projecting CleanSpark, Inc. (CLSK)'s revenue to climb to $1.04 billion for fiscal year 2026, which would represent a 34.2% year-over-year increase. That growth is defintely predicated on successfully deploying that new capital into the AI and Bitcoin expansion projects.

What this estimate hides is the execution risk in a new business line, but the competitive advantages are clear. CleanSpark, Inc. (CLSK) already owns a portfolio of more than 1.3 GW of power and land across the U.S.. Monetizing this low-cost, high-reliability energy by producing compute for both Bitcoin and AI gives them a structural cost advantage over rivals who have to build from scratch or pay higher energy rates. Plus, their marginal cost to mine Bitcoin was already low at about $34,000 per coin at their owned facilities in Q1 FY2025.

To be fair, they are using a large capital raise to fund this, but they also used about $460 million of the proceeds to repurchase approximately 30.6 million shares of common stock, mitigating some of the potential dilution from the convertible notes. This shows management's confidence and a commitment to boosting earnings per share (EPS) for remaining shareholders. For a deeper look at the balance sheet that makes this expansion possible, check out our full report: Breaking Down CleanSpark, Inc. (CLSK) Financial Health: Key Insights for Investors.

The company's strategic moves, like the acquisition of GRIID Infrastructure to strengthen their Tennessee footprint, show a disciplined 'land and expand' approach that has worked for them before. This is a company that has proven it can scale fast. Your next step is to monitor the deployment timeline for the Texas AI data center; that will be the key indicator of whether the market-diversification bet pays off.