Cleanspark Stock (CLSK) Great Growth and Undervalued (Q3 2025 Earnings)

In Q3 2025 which ended in June 2025, CleanSpark (NASDAQ: CLSK) delivered earnings that have startled many analysts and investors. The bitcoin miner and infrastructure operator turned in far stronger revenue growth, profitability, and forward guidance than many expected, suggesting that the market may be underappreciating its potential. For investors seeking exposure to bitcoin mining with improving operational efficiency, CleanSpark’s recent performance makes a compelling case. In this article we will dive into CleanSpark recent earnings, stock performance & valuation, growth potential, and the risks investor should consider.

About CleanSpark

CleanSpark is a U.S.-based company engaged primarily in bitcoin mining and operating infrastructure/data centers. It was originally incorporated in 1987, under a different name (Stratean), and rebranded to CleanSpark in November 2016. Its operations include mining bitcoin, power infrastructure, data center operations, and managing its bitcoin treasury. It strives to combine scale, efficient operations, and power contracts to drive margins, while holding a portion of bitcoin mined (“the huddle” or treasury) rather than selling everything immediately. CleanSpark operates in several U.S. states and has invested heavily in increasing its hash rate, improving fleet efficiency, and lowering its energy and operational costs.

CleanSpark Financial Performance

In the third quarter of 2025, which ended in June 2025, CleanSpark reported revenue of $198.64 million, a sharp increase of 90.81% compared to $104.11 million in the same quarter of 2024. Earnings per share (EPS) also improved significantly, reaching $0.78 versus a loss of $1.03 in Q3 2024, representing a remarkable 175.73% turnaround. On a trailing twelve-month (TTM) basis, revenue climbed to $631.94 million, up 84.66% from $342.21 million a year earlier, while TTM EPS rose to $0.98 compared to a loss of $0.85, reflecting a robust 215.29% increase. The company also demonstrated strong profitability and efficiency, with a gross profit margin of 52.05%, net profit margin of 47.98%, return on assets (ROA) of 7.14%, and return on equity (ROE) of 17.09%, supported by a conservative debt-to-equity ratio of 0.38.

Over the past five years, CleanSpark has grown its revenue at a 151.2% CAGR, with net income turning positive this year alongside a high net profit margin, while free cash flow continues to be heavily negative as the company invests heavily in Bitcoin mining infrastructure.

CleanSpark Fiscal 2025 Financial Forecast

Looking ahead, analysts forecast revenue of $782.64 million for 2025, representing a 106.52% increase from $378.97 million in 2024, alongside a projected EPS of $1.57, a staggering 327.54% improvement from the prior year’s –$0.69. Reflecting this momentum, Wall Street analysts have assigned CleanSpark a Strong Buy rating, with a consensus price target of $20.16 implying a 94.78% potential upside and the highest target of $25, which suggests an even greater 141.06% upside potential from current levels.

CLSK Stock Price Performance and Valuation

At the time this article was written, the stock was trading at $10.35 per share, CleanSpark’s stock has gained 11.8% over the past year, which underperformed the S&P 500’s 17.5% increase during the same period. Looking at a longer horizon, the stock is up 10.3% over the past five years, while the S&P 500 delivered a much stronger 98.8% gain, showing that CleanSpark has lagged broader market returns. 

Despite this underperformance, the company’s valuation suggests significant upside potential. CleanSpark is trading at a price-to-sales (P/S) ratio of 4.49 on a trailing twelve-month basis, with a more attractive forward P/S of 3.72. Its price-to-earnings (P/E) ratio stands at 10.55 TTM, with a projected forward P/E of just 6.61. These figures indicate that while the stock has not kept pace with the broader market historically, its rapid revenue expansion, rising profitability, and discounted forward multiples position it as an attractive investment opportunity for growth-oriented investors seeking undervalued exposure to the bitcoin mining sector.

CleanSpark Growth Potential

CleanSpark growth prospect remains robust, driven by several factors.

• Dominant Hashrate Scale and Market Leadership
  CleanSpark achieved a historic milestone by reaching 50 EH/s operational hashrate in June 2025, becoming the first public Bitcoin mining company to accomplish this entirely through self-operated American infrastructure. This achievement represents a 9.6% month-over-month increase while improving fleet energy efficiency to 16.15 J/Th. The company now controls 5.8% of the global Bitcoin hashrate and has established itself as America's leading pure-play Bitcoin miner.
  With over 1 GW of power under contract and an additional 179 megawatts of power capacity secured to support more than 10 EH/s of incremental hashrate, CleanSpark is well-positioned for continued expansion. The company's strategic geographic diversification across multiple U.S. states provides operational resilience and access to low-cost energy sources, creating sustainable competitive advantages that enable profitable scaling while maintaining operational control and margin protection in the volatile Bitcoin mining sector.
• Substantial Bitcoin Treasury and Capital Strategy Evolution
  CleanSpark's Bitcoin treasury has grown substantially, now holding 12,703 BTC valued at over $1.08 billion, doubling year-over-year and ranking seventh among publicly traded companies globally. This impressive growth stems entirely from self-mining operations, with no equity offerings since November 2024, underscoring operational strength. The company has shifted from a pure HODL to an advanced capital management strategy by launching an institutional-grade Digital Asset Management team with derivatives capabilities.
  Their actively managed spot sales program delivered positive returns, with June Bitcoin sales averaging $105,860 per BTC $446 above the volume-weighted average price. This strategic approach enables CleanSpark to maintain "escape velocity," self-funding operations and expansion through cash flow. Additionally, a $200 million Bitcoin-backed credit facility from Coinbase Prime supports non-dilutive growth, enhancing treasury management and shareholder value creation.
• Vertically Integrated Infrastructure and Energy Advantage
  CleanSpark’s vertically integrated model grants full operational control as the sole large-scale Bitcoin miner owning and operating all infrastructure. The company controls its data centers, mining hardware, and secures long-term energy contracts, resulting in superior cost management with $985.9 million in mining assets and competitive energy costs despite market pressures. CleanSpark prioritizes low-carbon energy, partnering with nuclear, hydro, and renewables to appeal to ESG-focused investors and meet regulatory demands.
  Their advanced immersion-cooling technology and cutting-edge facility designs drive industry-leading energy efficiency. With 987 megawatts of contracted power, CleanSpark supports growth beyond 60 EH/s hashrate. This infrastructure foundation enables scalable expansion with operational flexibility and cost advantages, directly boosting profitability and market share in the Bitcoin mining industry.

Risks to Consider

While CleanSpark looks attractive, we should be mindful of potential risks.

• Bitcoin Price Volatility
  CleanSpark's revenue and asset values are directly linked to Bitcoin's market price, which can fluctuate wildly due to macroeconomic factors, investor sentiment, and global events. A prolonged downturn in Bitcoin prices could reduce mining profitability, devalue the company's self-mined BTC holdings (currently over 12,000 BTC), and strain cash flows, especially since the firm balances holding and selling BTC to fund operations.
• Energy Cost Fluctuations and Supply Risks
  As a power-intensive operation, CleanSpark relies on competitive, often renewable energy sources to maintain low mining costs (around 16 J/TH efficiency). However, rising electricity prices, supply disruptions, or challenges in securing power purchase agreements (PPAs) could erode margins. The company's aggressive expansion into new sites heightens exposure to regional energy market swings and availability issues.
• Operational Disruptions and Execution Challenges
  Scaling mining infrastructure involves risks such as equipment failures, integration issues from acquisitions, or delays in hashrate growth targets. CleanSpark's pivot toward high-performance computing (HPC) alongside Bitcoin mining introduces higher execution risks compared to traditional colocation models, potentially leading to downtime, increased capital expenditures, or failure to meet efficiency goals during market downturns.

Read More: Marvell Technology Stock (MRVL) Great Growth and Good Value (Q2 2026 Earnings)

Conclusion

CleanSpark’s Q3 2025 results highlight a company that is rapidly growing, turning profitable, and trading at attractive valuations. With revenue nearly doubling year over year, strong margins, and analyst forecasts pointing to continued acceleration, CLSK stands out as an undervalued player in the bitcoin mining sector. Although risks remain from bitcoin volatility and regulatory shifts, the company’s efficiency, solid balance sheet, and strong analyst price targets suggest significant upside potential, making CleanSpark a compelling buy opportunity.