Abstract

Bitfarms Ltd. is scheduled to report its quarterly results Pre-Market on March 31, 2026, and investors will focus on whether revenue momentum can translate into margin stabilization and improved earnings per share after a weak prior quarter marked by negative gross margins and sizable net losses.

Market Forecast

Based on current-quarter projections, the market expects Bitfarms Ltd. to deliver revenue of 63.33 million US dollars, implying a year-over-year increase of 17.86%, with an estimated EPS of -0.04 reflecting a year-over-year change of -7.15% and an estimated EBIT of -23.31 million US dollars, a year-over-year change of -2.51%. Forward-looking disclosures do not include an explicit gross profit margin or net profit (or net margin) forecast, and thus margin expectations are being inferred by investors from the company’s cost actions and price realizations.

The company’s main business remains crypto mining, which accounted for 60.44 million US dollars last quarter, and near-term commentary points to incremental fleet and energy optimization as the key to restoring gross profitability trajectory. The most promising revenue contributor from a growth-optional standpoint remains crypto mining at scale, underpinned by the company’s installed capacity and power strategy; in the last quarter it generated 60.44 million US dollars, while segment-level year-over-year growth was not disclosed.

Last Quarter Review

Bitfarms Ltd. reported revenue of 69.25 million US dollars in the last quarter, with a gross profit margin of -4.16%, a GAAP net profit attributable to the parent company of -80.77 million US dollars for a net profit margin of -116.64%, and EPS of -0.15; year-over-year, revenue increased by 54.38%, EPS declined by 87.50%, and EBIT of -28.96 million US dollars reflected a year-over-year change of 34.03%. The combination of negative gross margin and significantly negative net margin suggests non-cash items and valuation-driven charges weighed on reported earnings, overshadowing the solid top-line expansion.

The main business highlights underscore how concentrated the revenue mix is: crypto mining contributed 60.44 million US dollars, energy sales contributed 4.95 million US dollars, crypto custody provided 2.74 million US dollars, and electrical services added 1.12 million US dollars; segment-level year-over-year comparisons were not disclosed, but the aggregate growth rate of 54.38% year-over-year demonstrates that the revenue engine continued to scale despite profit headwinds.

Current Quarter Outlook (with major analytical insights)

Core Mining Operations

All eyes are on the core mining operations, which provided 87%+ of last quarter’s revenue and remain the dominant driver of consolidated results. With the market expecting revenue of 63.33 million US dollars this quarter (up 17.86% year-over-year), the key question is whether higher realized prices for mined digital assets and incremental fleet efficiency gains can offset the lingering pressure that produced a negative gross margin of -4.16% last quarter. The company has guided toward incremental performance improvements in earnings drivers through better capacity utilization, disciplined energy management, and more efficient machines relative to legacy fleet averages, and the EPS projection of -0.04 implies modest sequential progress against the prior quarter’s -0.15.

On the operating line, the forecast EBIT of -23.31 million US dollars (a year-over-year change of -2.51%) signals that profitability remains under repair even as top-line growth persists. For the quarter to surpass expectations on earnings, two levers are likely decisive: unit economics per mined coin and the ratio of self-mined volumes to total volumes after curtailment or hedging, both of which affect revenue recognition timing and margin capture. The sensitivity of cash margins to realized selling prices and power costs means management’s execution on power purchasing and curtailment programs will be closely scrutinized, especially given that last quarter’s GAAP results embedded non-cash impacts that obscured the underlying cash-cost trend that investors care about.

Looking through the income statement, investors will be looking for signs that cash gross margin is turning positive and sustainably expanding, even if GAAP gross margin lags due to non-cash items. A return to positive gross margin would be a powerful signal that the company’s cost per unit is normalizing against realized price levels, and would set the stage for narrowing EBIT losses. The current quarter’s EPS forecast still implies a loss, but the magnitude—at a projected -0.04—suggests material progress versus the -0.15 last quarter if operating cost discipline and realized prices track favorably.

Energy Sales and Optimization Initiatives

Although not the largest revenue line, energy sales at 4.95 million US dollars last quarter play an outsize role in smoothing earnings volatility and supporting cost control. In periods of high power prices or unfavorable real-time economics for self-mining, surplus capacity can be directed to the grid, providing revenue and offsetting variable costs; this flexibility supports both liquidity and margin trajectory. The scalability of this contribution depends on power agreements and the timing of curtailment actions, which can change quarter to quarter, but from an investor’s perspective, a disciplined approach to energy market participation is a constructive hedge that can mitigate downside during unfavorable operating windows.

This quarter, the magnitude of energy sales will likely be influenced by local power price spreads and management’s curtailment decisions in response to intra-quarter variability in margin capture per unit of capacity. If realized selling prices for mined assets are favorable, the company may prioritize hashing over energy sales; if not, a higher proportion of energy sales could bolster revenue while protecting margin per megawatt-hour. The value of this operational lever is greatest when it demonstrably reduces the average cost of production for the mining fleet and narrows the gap between negative GAAP margins and positive cash margins that the market may anticipate as transitory.

From a valuation standpoint, consistent evidence that energy optimization measurably lowers net power costs per mined unit can improve investor confidence in the sustainability of gross margin recovery. The street will be parsing disclosures for explicit power cost per unit, curtailment revenue capture, and any new contracts that lock in more favorable pricing. These data points will help reconcile the path from last quarter’s -4.16% gross margin to a more balanced margin profile over the next few quarters.

Hosting/Custody and Services

The company’s smaller lines—crypto custody at 2.74 million US dollars and electrical services at 1.12 million US dollars last quarter—are not currently large enough to move consolidated revenue, but they can still improve the stability of quarterly cash flows. Hosting/custody contributes fee-based revenue that tends to have fewer balance-sheet revaluation effects than self-mining, and steady growth here would help smooth earnings variability. Electrical services revenue is modest, but serves as a capability enhancer that can support internal deployments and selective third-party work, potentially reducing capital intensity for infrastructure builds and enabling more cost-effective expansions.

In the current quarter, investors will look for qualitative commentary on pipeline visibility and contract durations within these ancillary areas. Any accretive growth here, even at low absolute levels, can improve operating leverage by absorbing fixed overhead and supporting the larger mining platform. While these segments will not overshadow core mining in the near term, their strategic role in supporting operational execution makes them important to monitor for incremental margin and cash-flow effects.

Key Stock Price Drivers This Quarter

Three factors are likely to dominate the stock’s near-term trading reaction to the release. The first is realized pricing and the company’s unit economics: if realized prices and cost per unit indicate the path back to positive gross margin is underway, the market will likely reward that evidence even if GAAP net income remains negative. The second is operating efficiency and capacity: details on hashrate, fleet efficiency, and utilization can influence how investors translate a revenue estimate of 63.33 million US dollars into forward earnings power, especially if management evidences reduced downtime and improved uptime across sites. The third is the magnitude of non-cash items such as impairments or revaluation losses that can widen GAAP losses; clear separation of cash costs and non-cash charges in management’s discussion will be important for the market’s interpretation of the EPS progression from last quarter’s -0.15 to an estimated -0.04.

Expectations embedded in the EBIT forecast of -23.31 million US dollars imply that operating losses are narrowing but not yet turning. If the release shows a faster-than-expected improvement in operating line items and a stabilization or improvement in gross margin from last quarter’s -4.16%, the stock could react favorably as investors revise forward margin assumptions. Conversely, if operating expenses or power costs surprise negatively and GAAP losses remain outsize due to non-cash charges, the market may question how quickly profitability can normalize, especially against the backdrop of a sequential revenue decline from 69.25 million US dollars last quarter to the 63.33 million US dollars now expected.

Analyst Opinions

Across previews published between January 1, 2026 and March 24, 2026, the balance of commentary has been bullish, with a clear majority emphasizing improving operating efficiency and the potential for margin recovery as the company executes on power optimization and fleet upgrades; a smaller minority remains cautious given the negative gross and net margins reported last quarter. The bullish camp highlights three pillars: the expected year-over-year revenue growth of 17.86% this quarter, the projected improvement in EPS from -0.15 last quarter to an estimated -0.04, and the company’s ability to deploy flexibility between self-mining and energy sales to manage power-cost volatility. This view argues that while GAAP losses remain, the trajectory of cash costs and operating metrics is improving sufficiently to support a re-rating as margin visibility increases.

Supportive analysts also point to the 54.38% year-over-year revenue growth in the last reported quarter as evidence that the revenue engine is scaling, even though profitability lagged due to non-cash items reflected in the net margin of -116.64%. Their near-term stance is that the EBIT outlook of -23.31 million US dollars and EPS of -0.04 are achievable if management continues to optimize hashing capacity and energy contracts, and that any incremental progress toward positive gross margin could drive upside versus conservative expectations. Furthermore, they contend that a disciplined approach to capital allocation, including pacing of fleet investments and selective capacity expansion anchored by cost-effective power, can compress operating losses faster than the market anticipates.

In framing upside and downside scenarios, proponents of the bullish view focus on operating leverage. If the company can improve gross margin by even several percentage points from the -4.16% level while maintaining revenue in line with the 63.33 million US dollars estimate, the flow-through to EBIT could be meaningful given a largely fixed cost base in the short term. They also emphasize the role of energy sales as an embedded hedge that can cushion quarters with tighter hashing economics, noting last quarter’s 4.95 million US dollars in energy revenue as a template for management optionality. In their view, the combination of top-line growth, improving efficiency, and power-market flexibility outweighs the temporary drag of non-cash accounting items on reported GAAP margins.

The minority, more cautious perspective centers on the depth of the GAAP net loss in the prior quarter and the risk that non-cash items continue to mask underlying progress, creating headline volatility that could cap near-term multiple expansion. However, even among cautious voices, there is acknowledgement that the move from -0.15 EPS last quarter to an estimated -0.04 this quarter would mark a notable sequential improvement. On balance, the majority bullish view expects continued progress on cash cost per unit, incremental uptime gains across sites, and stable to improving realized prices to translate into narrowing operating losses and a constructive setup for the next several quarters.

Overall, the dominant sell-side takeaway is that Bitfarms Ltd. is positioned to show year-over-year revenue expansion this quarter with a pathway toward better margins, and if management demonstrates tangible improvement in gross margin off last quarter’s -4.16% level while keeping EBIT near or better than the -23.31 million US dollars estimate, upside to sentiment and valuation is plausible. As a result, consensus leans to the bullish side going into the March 31, 2026 Pre-Market print, contingent on evidence that the company’s efficiency and power strategies are translating into measurable financial progress at the gross and operating line.