CleanSpark to Report Q4 Earnings: What's in Store for the Stock?

CleanSpark CLSK is scheduled to report fourth-quarter fiscal 2025 results on Nov. 25.The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $238.8 million, suggesting a 167.4% year-over-year rise.The consensus mark for earnings is pegged at 5 cents per share, implying a robust improvement from the year-ago quarter’s loss of 27 cents. Estimates have remained unchanged over the past 30 days.Image Source: Zacks Investment ResearchCleanSpark’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed in the remaining two, delivering a negative earnings surprise of 54.1%, on average.Cleanspark, Inc. Price and EPS Surprise Cleanspark, Inc. price-eps-surprise | Cleanspark, Inc. QuoteLet us see how things have shaped up for the upcoming announcement.What Our Model Says About CLSK’s Q4 EarningsOur proven model does not conclusively predict an earnings beat for CleanSpark this season. According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the exact case here. You can see the complete list of today’s Zacks #1 Rank stocks here.Though CLSK carries a Zacks Rank #3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.Factors Likely to Influence CLSK’s Q4 ResultsCleanSpark’s fiscal fourth-quarter performance is expected to have benefited from its strategic investments in energy-efficient infrastructure. As of Sept. 30, the company had a total contracted power capacity of approximately 1,030 megawatts (MW) across the United States, spanning more than 33 locations in Georgia, Mississippi, Tennessee and Wyoming. This is an increase of 43 MW from 987 MW as of June 30.As of June 30, 2025, the company’s operating mining units could produce more than 45.3 exahash per second (EH/s) of computing power, up from 42.4 EH/s as of March 31, 2025. Hash rate is a measure of the computing and processing power and speed by which a mining computer mines and processes transactions on the Bitcoin network. CLSK hit a peak of 50 EH/s in the last quarter.Given the company’s sustained focus on expanding its power infrastructure, the upward momentum in mining units is likely to have continued in the to-be-reported quarter. In July, August and September, CleanSpark produced 671, 657 and 629 Bitcoins, respectively. At the end of September 2025, the company’s self-mined Bitcoin holding reached 13,011 from 12,608 as of June 30.CleanSpark’s transition from a nearly 100% HODL (hold-on-for-dear-life) Bitcoin treasury approach to a more balanced monetization strategy through selling a portion of mined Bitcoin to fund operations has been a key catalyst. The company sold 1,554.42 bitcoins in the to-be-reported quarter. CLSK’s focus on achieving low marginal cost per Bitcoin is expected to have benefited profitability in the fiscal fourth quarter.CleanSpark Stock Price Performance & ValuationShares of CleanSpark have risen 6.2% year to date, outperforming the Zacks Financial – Miscellaneous Services industry’s decline of 9.7%. Compared with peers, the company has outperformed MARA Holdings MARA while underperforming TeraWulf WULF and Riot Platforms RIOT. While MARA Holdings has declined 38.9% year to date, shares of TeraWulf and Riot Platforms have soared 104.3% and 25.2%, respectively.CleanSpark YTD Price Return PerformanceImage Source: Zacks Investment ResearchOn the valuation front, CleanSpark looks reasonably priced relative to the industry. The stock currently trades at a forward 12-month price-to-sales (P/S) ratio of 2.87, modestly below the Zacks industry average of 2.95.CleanSpark Forward 12-Month P/S RatioImage Source: Zacks Investment ResearchCleanSpark also trades at a lower P/S multiple compared with other listed Bitcoin miners, including TeraWulf, Riot Platforms and MARA Holdings. At present, TeraWulf, Riot Platforms and MARA Holdings have P/S multiples of 14.01, 6.44 and 3.54, respectively.Investment Consideration for CleanSparkCleanSpark is actively transforming its business from a pure-play Bitcoin miner into a broader digital infrastructure and artificial intelligence (AI) or high-performance computing (HPC) data center provider. The company is leveraging its existing assets, including power infrastructure and land portfolio, to build out sophisticated data centers for the rapidly accelerating AI and HPC industries.This diversification is a smart move that positions CleanSpark to tap into secular growth drivers that extend beyond the cyclical nature of Bitcoin prices. Having a dual exposure to both crypto mining and AI infrastructure gives CleanSpark more stable growth prospects over the long run. This strategic pivot helps de-risk the company's future revenue streams.Nonetheless, rising debt to fund power infrastructure and land portfolio expansion plans remains a major concern. The company recently raised $1.3 billion through issuing convertible senior notes, which raises earnings dilution concerns in the long run. Convertible senior notes can pressure a stock because they have the potential to be converted into new shares, which increases the total number of outstanding shares and dilutes the value of existing holdings.Conclusion: Hold CLSK Stock for NowCleanSpark offers a balanced risk-reward profile at this stage. Its growing Bitcoin mining capacity and early move into AI and HPC data centers support a constructive long-term view. At the same time, higher debt and dilution risk from convertible notes call for caution.Given these factors, it makes sense for existing investors to hold CLSK, while others should wait for earnings results to get a clear picture for making big portfolio changes.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marathon Digital Holdings, Inc. (MARA): Free Stock Analysis Report Riot Platforms, Inc. (RIOT): Free Stock Analysis Report Cleanspark, Inc. (CLSK): Free Stock Analysis Report TeraWulf Inc. (WULF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks