Northern Data's Preliminary Results Reveal Deepening Financial Strain

Northern Data's 2025 revenue plunged 33% to €80M, with a €390M annual loss. An asset sale failed to offset operational collapse as the stock nears a 52-week low.

Preliminary figures for Northern Data's 2025 fiscal year have delivered a stark picture of the company's financial health. The report is characterized by a severe contraction in revenue and an annual loss that ballooned to nearly 400 million euros, with the situation only being partially mitigated by the divestment of a business unit.

Profitability Plummets Amid Operational Challenges

The data released on Monday highlights a significant deterioration in core operations. Revenue from continuing operations collapsed by approximately one third, falling to 80 million euros. This steep decline was mirrored in the company's operating performance. The EBITDA swung dramatically into negative territory, recording a loss of 83 million euros. This marks a severe reversal from the previous year, which saw a profit of 25 million euros on the same measure.

Asset Sale Provides Only Partial Relief

A singular positive note came from the November sale of the Peak Mining division, which generated a book gain of 93 million euros. However, this one-time accounting benefit was insufficient to offset broader losses. Despite this gain, the group's consolidated annual deficit expanded to 390 million euros. This represents a substantial worsening of profitability when compared to the prior year's loss of 127 million euros, underscoring the scale of the current challenges.

Strategic Shift Towards Infrastructure Efficiency

In response to these headwinds, management is emphasizing improved efficiency within its existing infrastructure. The company reported that the utilization rate of its GPU capacity climbed to 66% in January 2026. A central question for investors is whether this increased utilization can generate sufficient income to cover the high fixed costs associated with its High-Performance Computing (HPC) segment.

To create more predictable revenue streams, the leadership team is pursuing a shift toward longer-term customer contracts. This strategic move aims to move away from the short-term spot market agreements that have previously complicated financial planning and weighed on margins. Market participants are now awaiting further details on the company's cost structure, which are needed to realistically assess the future margin potential of the cloud division.

Investor Sentiment Turns Negative

The market reaction to the preliminary numbers was decidedly skeptical. Investors sent the share price lower on Monday. Closing at 10.15 euros, the stock is now trading just above its 52-week low of 9.68 euros, reflecting heightened concern. All eyes are now on the impending publication of the complete, audited annual report in the coming days, which is expected to provide a clearer assessment of the company's financial stability.