Hut 8 Stock Before Q4 Earnings Release: Should You Hold or Fold?

Hut 8 Corp. HUT is scheduled to report its fourth-quarter 2025 results on Feb. 25, 2026.

The Zacks Consensus Estimate for fourth-quarter loss is pegged at 12 cents per share, narrowed by 5 cents over the past 30 days. However, this marks a sequential decline from a loss of 7 cents.

The Zacks Consensus Estimate for revenues is pegged at $97.5 million, reflecting 16.8% sequential growth.

The company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters while missing the same on one occasion, the average surprise being 4.31%.

Earnings Whispers for HUT Stock

Our proven model does not conclusively predict an earnings beat for Hut 8 this time. 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.

HUT has an Earnings ESP of +126.09% at present 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.

Factors to Note Ahead of HUT’s Q4 Results

Hut 8’s fourth-quarter 2025 performance is expected to have been impacted by its significant exposure to Bitcoin price movements and fair value accounting for digital assets. Under this treatment, unrealized gains and losses from Bitcoin holdings are recognized directly in earnings each quarter, making reported profitability highly sensitive to short-term market volatility rather than purely operational execution. With 13,696 Bitcoin valued at roughly $1.6 billion as of Sept. 30, 2025, the company’s balance sheet remains heavily concentrated in crypto assets. Any weakness in Bitcoin prices during the quarter is likely to have reduced fair value gains or resulted in mark-to-market losses, thereby pressuring profitability and increasing earnings volatility in the period under review.

Hut 8’s aggressive capital deployment strategy remains a structural headwind, as significant investments in Bitcoin accumulation and infrastructure expansion have materially reduced liquidity. During the first nine months of 2025, the company used $451.8 million in investing activities, including $287.8 million for Bitcoin purchases and $147.9 million for property and equipment. With expansion initiatives ongoing, constrained liquidity and sustained funding needs are expected to have weighed on financial flexibility and pressured fourth-quarter 2025 performance.

Hut 8’s Power segment has faced a structural revenue decline following the wind-down of its higher-margin Managed Services agreement with Ionic Digital. In the previous quarter, segment revenues fell sharply year over year to $8.4 million from $26.2 million, as modest growth in Power Generation only partially offset the loss. The absence of recurring, higher-margin service revenues significantly reduced the segment’s contribution. With the lower revenue base continuing into the fourth quarter and new revenue sources still uncertain, the Power segment is likely to have pressured consolidated results in fourth-quarter 2025.

Hut 8 has strategically shifted its business model away from merchant exposure toward long-term contracted revenues, enhancing earnings visibility and reducing exposure to spot market volatility. In the third quarter, the company expanded its Managed Services agreement with American Bitcoin to 325 MW, marking the largest contracted capacity in its history. Additionally, more than 85% of Energy Capacity Under Management was commercialized under agreements with terms of one year or longer. This greater emphasis on recurring, contracted revenues is expected to have strengthened revenue stability and margin predictability, likely benefiting overall financial performance in fourth-quarter 2025.

HUT’s Stock Price Performance & Valuation

Over the past three months, HUT has gained 37% against the industry’s decline of 11.5%. It has also outperformed peers like Riot Platforms RIOT, Futu Holdings FUTU and Bitcoin Depot Inc. BTM. During the same timeframe, Riot Platforms has climbed 12.9%, while Futu Holdings and Bitcoin Depot have fallen 9.5% and 38.8%, respectively.

Despite its recent outperformance, HUT remains risky due to its aggressive capital deployment, rising leverage tied to miner purchases and development projects, and heavy operational concentration in American Bitcoin, which heightens execution risk and financial sensitivity even if the stock has recently rallied.

HUT 3-Month Stock Performance

From a valuation perspective, HUT appears overvalued, as suggested by the Value Score of F. It trades at a forward 12-month price-to-sales ratio of 12.91X, significantly above the industry average of 2.81X and median of 8.39X. In comparison, peers trade at more moderate multiples, with Riot Platforms at 8.32X, Futu Holdings at 6.81X, and Bitcoin Depot at just 0.12X.

HUT Forward 12-Month P/S Ratio

Investment Considerations for HUT Stock

Hut 8 presents a high-risk, high-reward investment profile. While the company has demonstrated strong revenue growth and is building a sizable development pipeline to support long-term scalability, its fundamentals remain volatile. Profitability has been meaningfully influenced by digital asset gains, leverage has increased and significant capital deployment has reduced financial flexibility. Additionally, operational concentration in American Bitcoin heightens execution and earnings sensitivity. Although the long-term infrastructure strategy is compelling, elevated balance sheet risk and earnings volatility warrant a cautious investment approach.

End Note

Despite solid revenue growth and recent stock momentum, Hut 8 remains a high-risk investment. Elevated valuation, increasing leverage and tighter liquidity constrain financial flexibility, while earnings continue to depend heavily on Bitcoin price swings. With ongoing capital spending and valuation concerns, the risk-reward profile appears unfavorable ahead of the fourth-quarter earnings release.

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

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