Cipher Digital Q4 Loss Wider Than Expected, Revenues Down Sequentially

Cipher Digital CIFR reported a fourth-quarter 2025 loss of $1.92 per share, significantly wider than the 12-cent loss projected by the Zacks Consensus Estimate.

Cipher Digital reported a GAAP loss of $1.85 per share, which represents a sharp year-over-year deterioration from earnings of 5 cents. On an adjusted basis, the company posted a loss of 14 cents per share, deteriorating sequentially from earnings of 10 cents.

CIFR reported revenues of $59.7 million for the fourth quarter of 2025, marking a significant decrease of 16.7% from $71.7 million reported in the previous quarter. The sequential decline was primarily caused by reduced mining capacity following the decommissioning of Black Pearl and the divestiture of joint venture sites as part of the mining exit strategy. The figure missed the Zacks Consensus Estimate by 23.31%.

Cipher Digital officially rebranded from Cipher Mining to Cipher Digital, reflecting a full pivot from bitcoin mining to high-performance computing (HPC) data center development.

CIFR's Q4 Operating Details

In the fourth quarter of 2025, total costs and operating expenses rose sharply to $360.3 million, up from $109.3 million in the prior quarter.

The company reported a net loss of $734.2 million in the fourth quarter, compared with a modest loss of $3.3 million in the previous quarter. A major driver of the quarterly loss was the $410.3 million change in fair value of warrant liability, a non-cash accounting adjustment.

On an adjusted basis, Cipher Digital reported a loss of $54.5 million, marking a substantial quarter-over-quarter deterioration from $40.7 million in adjusted earnings.

Cipher Digital reported an operating loss of $300.6 million in the fourth quarter, widening sharply from a $37.6 million loss in the prior quarter.

Adjusted EBITDA reported a loss of $38.9 million in the fourth quarter, marking a sharp sequential deterioration of $40.8 million.

CIFR's Q4 in Detail

In the fourth quarter of 2025, the company completed the sale of its 49% ownership interests in the Alborz, Bear and Chief joint venture sites, marking a decisive step in exiting non-core mining assets.

In parallel, Black Pearl was fully decommissioned from bitcoin mining operations in February 2026. The company has secured 600 MW of total contracted HPC capacity to date across two long-term leases, including a 15-year, 300 MW agreement with AWS and a 10-year, 300 MW lease with Fluidstack and Google.

As part of the wind-down, the company recorded losses related to miners held for sale, asset impairments and disposal of mining equipment during the fourth quarter of 2025. Cipher Digital is strategically monetizing its bitcoin holdings, with approximately 1,166 BTC being managed down as part of its transition plan.

In the fourth quarter of 2025, total operating hashrate declined to roughly 11.6 EH/s from 23.6 EH/s in the third quarter of 2025, reflecting the decommissioning of Black Pearl and divested joint venture sites.

CIFR's Balance Sheet Details

As of Dec. 31, 2025, Cipher Digital had cash and cash equivalents of $628.3 million compared with $1.2 billion as of Sept. 30, 2025.

As of Dec. 31, 2025, total assets expanded to $4.29 billion, up from $2.84 billion as of Sept. 30, 2025.

The company reported $2.04 billion in restricted cash, including $1.76 billion classified as current and $275.1 million as noncurrent, largely tied to project-level financing.

CIFR’s Zacks Rank & Stocks to Consider

Cipher Digital currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the broader Zacks Business Services sector are APi Group APG, Amprius Technologies AMPX and DLocal Limited DLO. Each stock carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

APi Group shares have surged 68.7% over the past year. APG is set to report its fourth-quarter 2025 results on Feb. 25.

Amprius Technologies shares have soared 289.9% over the past year. AMPX is set to report its fourth-quarter 2025 results on March 5.

DLocal Limited shares have declined 11.4% over the past year. DLO is set to report its fourth-quarter 2025 results on March 18.

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

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