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Earnings Report

Phoenix Group

Q1 26 NEUTRAL LOW Impact

1. Company Overview & Earnings Context

Phoenix Group PLC reported its Q1 2026 results, reflecting continued operational optimization in its digital asset mining business, alongside ongoing expansion into AI and HPC infrastructure platforms.

2. Financial Performance Snapshot

  • Revenue: AED 85.6M (vs AED 114.8M YoY)

  • Adjusted EBITDA: AED 4.4M (vs loss in Q1 2025)

  • Gross margin: 38%

  • Net loss: AED 297.7M

  • Loss per share: AED 0.05

3. Operational Highlights & Key Metrics

  • Total assets: AED 2.24B

  • Total equity: AED 2.03B

  • Total digital assets: AED 838.0M

  • Cash & bank balances: AED 38.8M

  • Mining operations:

    • Average hash rate: 17.2 EH/s

    • Contribution to global hash rate: 1.7%

    • Mining efficiency improved to 19.53 J/TH

    • Average power cost improved to $0.046/kWh

  • Bitcoin mining metrics:

    • BTC mined during Q1 2026: 406.5 BTC

    • Self-mined BTC: 284.2 BTC

    • Self-mining gross margin: 42%

  • Revenue mix:

    • Self-mining revenue: AED 69.8M

    • Hosting revenue: AED 15.8M

4. Key Performance Drivers

  • Higher operational efficiency, improving mining economics

  • Improved mining fleet performance, reducing energy intensity

  • Lower average power costs, supporting margins

  • Growth in self-mining operations, partially offsetting weaker Bitcoin prices

  • Significant unrealized losses on digital and financial assets, impacting bottom-line profitability

5. Outlook & Forward Guidance

  • Continued focus on:

    • Scaling AI and HPC infrastructure operations

    • Expanding European AI data center platform

    • Enhancing mining efficiency and power optimization

    • Building long-term contracted infrastructure revenue streams

  • Strategic partnership announced with DC Max Group to develop an 18 MW AI data center in Lyon, France, forming part of a broader platform targeting over 1 GW of AI/HPC capacity across Europe and the GCC.

6. 🧾 Investor Takeaway

Phoenix Group delivered a mixed Q1 2026, with operational efficiency improvements and stronger adjusted EBITDA partially offset by significant unrealized losses on digital assets, while the company continued positioning itself for long-term growth through expansion into AI and HPC infrastructure.