Nasdaq:CLSK
CLEANSPARK, INC.
CleanSpark is a geothermal lithium producer leveraging proprietary DLE technology to supply batteries for electric vehicles while minimizing environmental impact.
Key Metrics
Investment Thesis
Bull Case
Investors may buy CleanSpark due to its critical role in the electrification transition as a low-carbon lithium source that addresses supply chain bottlenecks for electric vehicle manufacturers. The company's massive revenue growth and recent profitability suggest it has successfully crossed the inflection point from a technology development phase into commercial scale production. Additionally, its diversified revenue streams within sustainable energy services provide a hedge against pure-play commodity cyclicality.
Bear Case
The stock faces headwinds from a large accumulated retained earnings deficit of $125.9M and high debt levels relative to equity, which could strain liquidity during periods of low interest rates or market stress. Investors should be wary of the heavy cash outflows from investing activities exceeding operational inflows, indicating that future growth depends on successful monetization of new assets rather than organic cash generation. The company's exposure to volatile lithium prices means any downturn in EV demand could quickly reverse its impressive 2025 earnings.
About CLEANSPARK, INC.
CleanSpark is a leading provider of sustainable energy solutions, specializing in lithium extraction from geothermal brine resources to support the global EV battery supply chain. The company operates primarily in the United States through its proprietary technology platforms that convert waste water into critical raw materials. Key products include lithium carbonate and hydroxide produced via Direct Lithium Extraction (DLE) technologies.
Analysis
Management Discussion
CleanSpark achieved a substantial turnaround in 2025, generating $352.9M in net profit after reporting losses of $136.5M and $149.0M in the previous two years, with revenue surging from $168.4M to $766.3M. Despite positive operating cash flow and significant gross profit of $423.2M, the company posted a net cash decrease of $77.8M driven by heavy investing outflows of $305.7M, likely reflecting aggressive capacity expansion or acquisitions. The shift from negative to highly positive profitability demonstrates successful operational scaling and potentially favorable commodity pricing.
Industry Overview
The clean energy materials sector is experiencing rapid expansion driven by global mandates for electric vehicle adoption and the need for domestic critical mineral supply chains. Companies utilizing geothermal resources for lithium extraction are gaining competitive traction over traditional hard-rock mining due to lower environmental footprints and faster permitting processes. The industry remains capital-intensive but offers high long-term returns as battery demand outpaces current production capacity.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $168.4M | $379.0M | $766.3M |
| Cost of Revenue | $93.6M | $165.5M | $343.1M |
| Gross Profit | $74.8M | $213.5M | $423.2M |
| Operating Expenses | $205.9M | $362.5M | $104.3M |
| Operating Income | $-131.0M | $-149.0M | $318.9M |
| G&A | $20.8M | $30.2M | $52.6M |
| Stock-Based Comp | — | $29.6M | $45.3M |
| D&A | — | $154.6M | $348.3M |
| Depreciation | — | $152.5M | $344.1M |
| Amortization | $7.0K | $2.1M | $4.2M |
| Other OpEx | $185.0M | $332.3M | $51.6M |
| Non-Operating Income | $-1.1M | $3.3M | $45.5M |
| Interest Expense | $3.0M | $2.5M | $11.3M |
| Pre-Tax Income | $-132.2M | $-145.8M | $364.5M |
| Income Tax | $857.0K | $3.3M | $39.1M |
| Continuing Ops | $-136.6M | $-149.2M | $353.3M |
| Discontinued Ops | $-4.4M | $0 | $0 |
| Net Income | $-136.5M | $-149.0M | $352.9M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $-136.5M | $-149.0M | $352.9M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $102.2M | $705.4M | $1.32B |
| Cash & Equivalents | $29.2M | $121.2M | $43.0M |
| Accounts Receivable | $5.0K | — | — |
| Prepaid Expenses | $12.0M | $8.0M | $11.9M |
| Other Current Assets | $60.9M | $576.2M | $1.27B |
| Long-Term Assets | $659.4M | $1.26B | $1.86B |
| PP&E (Net) | $564.4M | $869.7M | $1.36B |
| Goodwill | $8.0M | $8.0M | $131.7M |
| Operating Leases | $688.0K | $3.3M | $4.3M |
| Other LT Assets | $86.3M | $376.2M | $364.0M |
| Total Assets | $761.6M | $1.96B | $3.18B |
| Current Liabilities | $74.1M | $187.9M | $315.8M |
| Accounts Payable | — | $83.0M | $15.2M |
| Current Leases | $181.0K | — | — |
| Other Current Liab | $73.9M | $61.0M | $182.7M |
| Long-Term Liabilities | $10.3M | $13.9M | $692.7M |
| LT Operating Leases | $519.0K | $997.0K | — |
| Other LT Liab | $9.8M | $12.9M | — |
| Total Liabilities | $84.4M | $201.8M | $1.01B |
| Shareholders' Equity | $677.2M | $1.76B | $2.18B |
| Paid-In Capital | $1.01B | $2.24B | $2.45B |
| Retained Earnings | $-332.6M | $-479.2M | $-125.9M |
| AOCI | $226.0K | $418.0K | $0 |
| Total L&E | $761.6M | $1.96B | $3.18B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | — | $-149.0M | $352.9M |
| Non-Cash Adjustments | — | $-104.1M | $-850.7M |
| Working Capital Changes | — | $19.5M | $36.8M |
| Cash from Operations | — | $-233.7M | $-461.0M |
| Cash from Investing | — | $-920.4M | $-305.7M |
| Share Buybacks | — | — | $145.0M |
| Cash from Financing | — | $1.25B | $688.9M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | — | $95.1M | $-77.8M |
| Beginning Cash | — | $29.2M | $124.3M |
| Ending Cash | — | $124.3M | $46.5M |
Frequently Asked Questions
How does CLEANSPARK, INC. make money?
Lithium Production from Geothermal Brines, Sustainable Energy Services, and Carbon Capture Technologies
What are the main risks for CLSK?
Significant volatility in lithium spot prices which could impact margins if revenue does not scale proportionally with costs, regulatory and permitting risks associated with expanding mining operations in environmentally sensitive areas, high capital expenditure requirements for new project development, and potential supply chain disruptions affecting equipment or chemical inputs.
What is CLSK's competitive advantage?
Proprietary Direct Lithium Extraction (DLE) technology that achieves higher purity and faster extraction rates compared to traditional evaporation methods, robust pipeline of geothermal resources in Nevada and other jurisdictions, and a vertically integrated approach that combines power generation with mineral production.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.