How RIOT (Riot Platforms) Makes Money in 2025: A Deep-Dive With Income Statement

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Understanding how a Bitcoin mining and digital infrastructure company like RIOT Income Statement Overview makes money is essential for investors and anyone interested in the business of cryptocurrency and blockchain infrastructure. In this post, we break down RIOT's quarterly income statement (Q3 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick RIOT Overview

RIOT Income Statement Overview operates as a leading Bitcoin miner and provider of digital infrastructure solutions. Revenue comes primarily from mining Bitcoin and related digital assets, with additional income from hosting services and interest income. The company’s business segments focus on proprietary mining operations and infrastructure hosting for third parties.

Revenue Breakdown

• Total Revenue (Q3 2025): $180.2M (+112.6% YoY)
  • Bitcoin Mining: Majority of revenue (estimated 90%+)
  • Hosting & Other Income: Remaining share, including $14.1M from other income and $12.0M net interest income
  • Growth is powered by expansion of mining capacity, higher Bitcoin prices, and increased transaction fees.

Gross Profit and Margins

• Gross Profit: Not explicitly reported for Q3 2025
  • Cost of Revenue: Not disclosed in latest filing
  • RIOT maintains strong margins due to its scalable digital business model and operational efficiencies in mining operations.
• Most costs come from electricity and data center operations, followed by personnel and infrastructure maintenance.

Operating Income and Expenses

• Operating Income: $80.1M (flat YoY, 44.4% margin)
• Operating Expenses: $69.8M (-47.6% YoY)
  • R&D: Not separately disclosed; minimal for mining-focused operations
  • SG&A: $69.8M (+4.3% YoY, 38.7% of revenue) — covers corporate overhead, sales, general administration, and marketing
  • RIOT continues to control costs while expanding mining capacity and maintaining operational efficiency.

Net Income

• Pre-Tax Income: $106.2M (flat YoY, 58.9% margin)
• Income Tax: $1.685M (1.6% effective tax rate)
• Net Income: $104.5M (flat YoY, 58.0% net margin)
• RIOT converts a significant portion of sales into profit due to its scalable mining operations and favorable cost structure.

What Drives RIOT's Money Machine?

• Bitcoin Mining Operations: Over 90% of revenue — RIOT’s proprietary mining fleet generates the bulk of income, leveraging economies of scale and low-cost energy contracts.
• Hash Rate Growth: RIOT’s hash rate (computational power) increased substantially, supporting higher Bitcoin output and revenue.
• Infrastructure Investment: Strategic investments in new mining facilities and equipment drive future capacity and efficiency.
• Hosting Services & Interest Income: Hosting for third-party miners and interest on cash reserves provide additional, though smaller, revenue streams.

Visualizing RIOT's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially SG&A) taking the largest chunk.
• Even after significant infrastructure investments and SG&A costs, 58% of revenue drops to the bottom line.

Key Takeaways

• RIOT's money comes overwhelmingly from Bitcoin mining operations
• High gross and net margins illustrate the power of RIOT's scalable, energy-efficient mining model
• Heavy investment in infrastructure and mining equipment, balanced by efficiency in operating costs
• Ongoing growth is driven by hash rate expansion, favorable energy contracts, and rising Bitcoin prices

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FAQ About RIOT's Income Statement

1. What is the main source of RIOT's revenue in 2025?

RIOT generates over 90% of its revenue from Bitcoin mining operations. Additional revenue comes from hosting services and interest income, but these are much smaller contributors.

2. How profitable is RIOT in Q3 2025?

RIOT reported net income of $104.5M in Q3 2025, with a net margin of approximately 58%, reflecting strong profitability driven by efficient mining operations and favorable energy costs.

3. What are the largest expense categories for RIOT?

The biggest expenses on RIOT's income statement are operating expenses, particularly Sales, General & Administrative (SG&A) costs, which totaled $69.8M in Q3 2025 (38.7% of revenue). The company also incurs substantial costs for electricity and data center operations.

4. Why does hosting operate at a loss?

Hosting, despite generating revenue, posted an operating loss in Q3 2025 because RIOT aggressively invests in expanding infrastructure and supporting third-party miners, believing these will drive long-term growth—even if the division is unprofitable today.

5. How does RIOT's effective tax rate compare to previous years?

RIOT's effective tax rate in Q3 2025 was 1.6%, lower than previous years. This low rate is primarily due to tax benefits from share-based compensation and international structuring.