Key financial results
- Riot reported total revenue of $181 million for the third quarter of 2026, which was up 1% year-over-year.
For the third quarter of 2026, Riot reported total revenue of $181 million, up 1% year-over-year
- The company reported GAAP net income of $4 million, or $0.01 per diluted share, and adjusted EBITDA of $191 million.
We reported GAAP net income of $4 million or $0.01 per diluted share and adjusted EBITDA of $191 million.
- Net income included $124 million of depreciation and amortization, $21 million of stock-based compensation, an $18 million noncash impairment, and an offset by a $172 million gain on the change in fair value of Bitcoin.
- The company ended the quarter with $950 million of total liquidity, consisting of $748 million of cash, including restricted cash, and $202 million of Bitcoin.
ended the quarter with $950 million of total liquidity, consisting of $748 million of cash, including restricted cash and $202 million of Bitcoin.
Business segment results
- Data Center segment: The Data Center segment generated $18 million of total segment revenue, which included $8 million of operating lease revenue at an 80% operating lease gross margin and $10 million of tenant fit-out.
- Bitcoin Mining segment: The Bitcoin Mining segment produced 1,637 Bitcoin in the third quarter, averaging 17.8 Bitcoin per day.
produced 1,637 Bitcoin in the third quarter or 17.8 Bitcoin per day
- Bitcoin Mining segment: Deployed hash rate at the end of the quarter was 44.9 exahash per second, with an average operating hash rate of 36.2 exahash.
- Bitcoin Mining segment: Summer curtailment under the power strategy generated $25 million of power credits, bringing the net cost of power to $0.032 per kilowatt hour and resulting in a direct cost to mine of $39,265 per Bitcoin.
- Bitcoin Mining segment: Riot held 2,418 Bitcoin valued at $202 million at the end of the quarter.
We ended the quarter holding 2,418 Bitcoin valued at $202 million at the September 30 closing price
- Engineering segment: The Engineering segment delivered $47 million of revenue at a 15% gross margin, with a backlog of $142 million.
Capital allocation
- Riot sold down the majority of its Bitcoin treasury, selling 20,264 Bitcoin year-to-date for $1.5 billion.
Year-to-date, we have sold 20,264 Bitcoin for $1.5 billion
- The company fully repaid its $200 million Coinbase credit facility, releasing all 5,821 pledged Bitcoin.
repaid our $200 million Coinbase facility in full and released all 5,821 pledged Bitcoin
- Management stated that Riot has raised no equity capital in 2026 and does not currently anticipate issuing equity to fund any announced projects.
Industry trends and dynamics
- Management noted that the current credit market is tighter, characterized by a higher interest rate environment and credit-led spread widening since September.
in a tighter credit market, characterized by higher interest rate environment, credit-led spread widening since September
- Lenders are currently doing deeper diligence on tenant credit, power, and delivery track records.
lenders doing deeper diligence on tenant credit, power and delivery track record.
Competitive landscape
- Management stated that Riot has secured approximately $38 billion of contracted data center revenue across 1,151 megawatts of critical IT capacity in 2026.
In 2026, Riot has secured approximately $38 billion of contracted data center revenue across 1,151 megawatts of critical IT capacity
Macroeconomic environment
- The call did not discuss macroeconomic environment beyond comments regarding the tighter credit market and higher interest rate environment.
Growth opportunities and strategies
- Riot signed a 15-year triple-net powered land lease with a leading Frontier AI Lab for the entirety of the Corsicana campus, representing 910 megawatts of critical IT capacity.
- Future growth will be pursued across five verticals, including expanding capacity at existing sites, acquiring grid-powered land, self-generation behind-the-meter, corporate acquisitions, and strategic partnerships.
additional growth will come from new development capacity, which we are pursuing across 5 verticals
Financial guidance and outlook
- Management expects the executed leases to generate $2.2 billion of average annual net operating income at an unlevered yield on cost of approximately 28%.
we expect these leases to generate $2.2 billion of average annual net operating income at an unlevered yield on cost across our lease portfolio of approximately 28%.
- Lease revenue is projected to grow from approximately $23 million in 2026 to $250 million in 2027, $1.8 billion in 2028, and $2.3 billion in 2029.
lease revenue grows from approximately $23 million this year to approximately $250 million in 2027, $1.8 billion in 2028 and $2.3 billion in 2029
Corsicana and Rockdale Project Execution
- At Corsicana, total project capital is estimated at approximately $6 million per IT megawatt, consisting of $2 million of site work and infrastructure and $4 million of reimbursement to the tenant.
- Full deployment of the first phase at Corsicana is expected in September 2027, with the full campus delivered by July 2028.
- At Rockdale, the 191-megawatt Frontier AI Lab deployment is on schedule, with the first 96 megawatts on track for ready-for-service in December 2027 and the remaining 95 megawatts in June 2028.
the first 96 megawatts on track for ready-for-service in December 2027 and the remaining 95 megawatts in June 2028.
- The AMD 50-megawatt expansion at Rockdale remains on track to be ready-for-service in May 2027.
the full 50 megawatts remain on track to be ready-for-service in May 2027.
Q3 FY2026 results
| Metric | Result | Change |
|---|---|---|
| Total Revenue | $181 million | up 1% year-over-year |
| GAAP Net Income | $4 million | Not stated |
| Diluted EPS | $0.01 per share | Not stated |
| Adjusted EBITDA | $191 million | Not stated |
| Total Liquidity | $950 million | Not stated |
How management sounded
Positive (+45 on our -100 to +100 scale). Management expressed strong confidence following the largest lease in the company history and a solid financial position without the need for equity raises. Management sounded more upbeat than on 62% of the 302 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Read the analyst Q&A summary and guidance and outlook for this call.
What to watch before the next call
- Execution of the Corsicana campus delivery phases starting in September 2027.
- Progress on the Rockdale and Corsicana project financing facilities.
- Delivery of the next 10 megawatts for AMD online in May 2027.
Earlier calls
- Q2 2026 (Aug 10, 2026), tone Positive: Riot reported $174 million in total revenue for the second quarter and secured a major 191-megawatt data center lease at Rockdale expected to generate $9.1 billion in revenue.
