CleanSpark Gears Up to Report Q1 Earnings: What's in the Offing?

CleanSpark CLSK is slated to release its first-quarter fiscal 2026 results on Feb. 5.

The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $186.66 million, suggesting a 15% year-over-year rise.

The consensus mark for the bottom-line loss is currently pegged at 10 cents per share, widened by 3 cents over the past 30 days. This represents a sharp year-over-year deterioration from a loss of 7 cents.

In the trailing four quarters, CleanSpark’s earnings performance has been inconsistent, delivering a negative surprise of 93.06%, on average.

Cleanspark, Inc. Price and EPS Surprise

Cleanspark, Inc. price-eps-surprise | Cleanspark, Inc. Quote

Let us see how things are shaping up for the upcoming announcement.

Key Factors to Note Ahead of CLSK’s Q1 Results

CleanSpark’s transition toward AI and high-performance computing data centers significantly increases capital intensity, as these facilities require far higher investment per megawatt than traditional Bitcoin mining infrastructure. With most projects still in the development phase, the company is absorbing substantial upfront construction and equipment costs without corresponding revenue contributions. This capital-heavy shift likely pressured liquidity and reduced near-term financial flexibility. As a result, heavy capital requirements are likely to have affected profitability and cash generation in the first quarter of fiscal 2026.

CleanSpark derives the majority of its revenues from Bitcoin mining, which inherently ties its results to volatile cryptocurrency prices and rising hash-rate competition. Post-halving reward reductions further magnify the downside risk from weaker Bitcoin pricing or lower mining efficiency. This operating leverage to adverse market conditions likely constrained profitability during the period. Therefore, instability in mining economics is expected to have hurt the company’s operating performance in the quarter under review.

CLSK’s expanded debt position following its recent convertible note issuance has increased vulnerability to fluctuations in Bitcoin prices and operational disruptions. While the notes carry zero interest, the enlarged leverage profile heightens financial risk in periods of weaker cash generation. This reduced financial cushion likely limited flexibility during the quarter. Hence, higher leverage is expected to have negatively influenced results in first-quarter fiscal 2026.

CleanSpark’s newly implemented Digital Asset Management strategy, which includes Spot Plus transactions along with yield calls and put options, has begun to generate meaningful incremental cash flow. The program produced $9.3 million in premiums in the fourth quarter of fiscal 2025, effectively raising realized Bitcoin sales prices above prevailing spot levels. Activity accelerated further in October 2025, with more than $5 million in premiums generated in a single month, indicating stronger momentum entering the new fiscal year.

What Our Model Says About CLSK Stock

Our proven model does not conclusively predict an earnings beat for CleanSpark this time around. Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, this is not the case here, as you can see below.

CleanSpark currently has an Earnings ESP of -68.42% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat earnings in their upcoming releases:

S&P Global, Inc. SPGI currently has an Earnings ESP of +1.14% and carries a Zacks Rank #2. SPGI shares have returned 2.7% in the trailing 12 months. SPGI is set to report its fourth-quarter 2025 results on Feb. 10, 2026. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cincinnati Financial CINF has an Earnings ESP of +7.23% and a Zacks Rank #3 at present. CINF shares have gained 19.8% in the trailing 12 months. CINF is set to report its fourth-quarter 2025 results on Feb. 9, 2026.

Robinhood Markets HOOD presently has an Earnings ESP of +3.32% and a Zacks Rank #3. HOOD shares have surged 71.3% in the trailing 12 months. HOOD is slated to report its fourth-quarter 2025 results on Feb. 10, 2026.

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This article originally published on Zacks Investment Research (zacks.com).

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