Digi Power X Inc. (DGXX): Results of Operations and Financial Condition
Digi Power X Inc. (DGXX) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 DIGI POWER X INC. Nasdaq: DGXX | Cboe Canada: DGX A Vertically Integrated AI Infrastructure Company Digi Power X Reports Second Quarter 2026 Financial Results and Provides Operational Update and 2027 Outlook Highlights $1.1 Billion of Contracted AI Infrastructure Rev
How this was made
The 30-second read
Why it matters
The most tradable elements are the first AI compute revenue generation, the size and optionality of contracted future revenue, the dated Alabama delivery schedule, and the stated cash position plus lender engagement for debt financing.
Market read
Traders can reassess execution risk and revenue visibility based on quantified KPIs (cash, deployed MW, adjusted EBITDA) and milestone timing for Phase 1 and Phase 2.
What to watch
Debt financing for the Alabama data center is only described as “advanced discussions,” so deal terms, timing, and cost of capital could materially affect execution and valuation.
Digi Power X Reports Second Quarter 2026 Financial Results and Provides Operational Update and 2027 Outlook Highlights $1.1 Billion of Contracted AI Infrastructure Revenue, First AI Compute Revenue, Positive Adjusted EBITDA and Strong Balance Sheet
The Company reported its first GPU bare-metal AI compute revenue and positive non-GAAP Adjusted EBITDA, supported by a substantial cash position and $1.1 billion of contracted AI data center future revenue. However, GAAP net loss was $ (14.4 ) million, current revenue was approximately $6.6 million, and the 2027 outlook depends on customer contracting, deployment schedules, utilization and financing availability.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | approximately $6.6 million | – | – |
| Net LossGAAP | $ (14.4 ) million | – | – |
| EBITDAother | $ (10.2 ) million | – | – |
| Adjusted EBITDAnon-GAAP | $ 3.3 million | – | – |
| Depreciation & AmortizationGAAP | 4.1 | – | – |
| Share-based CompensationGAAP | 5.8 | – | – |
| Crypto Revaluation LossGAAP | 2.8 | – | – |
| Warrant FV LossGAAP | 5.0 | – | – |
| Cash and cash equivalentsGAAP | $142.4 million | – | – |
| Total assetsGAAP | $279.6 million | – | – |
| Shareholders’ equityGAAP | $265.0 million | – | – |
| Combined total of property, plant and equipment, net, and long-term amounts assetsGAAP | $127.5 million | – | – |
| Year-to-date capital investment and equipment depositsother | Approximately $110 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Colocation services and legacy miningReported as a component of Q2 2026 revenue. | approximately $3.6 million | – | – |
| Energy salesReported as a component of Q2 2026 revenue. | $1.9 million | – | – |
| GPU rentalGenerated from approximately five weeks of GPU bare-metal rental operations and marked the Company’s first AI compute revenue. | $1.1 million | – | – |
2027 / Q3 2027 outlook
- Revenueapproximately $250 million to $300 million annualized revenue run-rate by Q3 2027
- Noteapproximately $140 million of annualized contracted revenue run-rate during 2027
- Noteapproximately 40 MW of additional colocation capacity
- Noteapproximately 10 MW of additional GPU bare-metal compute capacity
- NoteQ3 2026 revenue expected to increase significantly compared with Q2 2026
- NotePhase 1, representing 15 MW of IT load, expected to be delivered in December 2026
- NotePhase 2, representing an additional 25 MW, expected to be delivered in March 2027, for up to 40 MW of IT load
- Noteplans to expand its GPU bare-metal platform by approximately 10 MW during 2027
- NoteNew York sites targeted for transition beginning in Q3 and Q4 2027
- NoteNorth Carolina development plan contemplates approximately 75 MW in 2029 and an additional 75 MW in 2030
What drove it
- GPU rental revenue of $1.1 million was generated from approximately five weeks of GPU bare-metal operations.
- The Company invested approximately $30 million in GPU infrastructure, representing approximately 0.6 MW of deployed AI compute capacity.
- The B300 GPU bare-metal infrastructure has operated at 100% uptime since May 2026.
- The 10-year AI data center agreement represents approximately $1.1 billion of contracted revenue, with an option that could increase total potential contract value to approximately $2.5 billion.
- US Data Centers Inc. raised outside capital at a $125 million pre-money valuation during Q2 2026; Digi Power X reported approximate 48% ownership.
Concerns
- GAAP net loss was $ (14.4 ) million despite positive non-GAAP Adjusted EBITDA of $ 3.3 million.
- The $250 million to $300 million annualized revenue run-rate target is subject to customer contracting, deployment schedules and utilization.
- Phase 2 deployment is conditioned on securing adequate financing, with no assurance that financing will be completed on the contemplated terms or at all.
- The Company is in advanced discussions with lenders to finalize debt financing for the Alabama data center.
- The release identifies risks related to construction, equipment delivery, customer ramp, capital needs, counterparty performance, permitting and interconnection.
What to watch
- Delivery of Alabama Phase 1, representing 15 MW of IT load, in December 2026.
- Delivery of Alabama Phase 2, representing an additional 25 MW, in March 2027.
- Whether Q3 2026 revenue increases significantly compared with Q2 2026, as expected by the Company.
- Expansion of GPU bare-metal compute capacity by approximately 10 MW during 2027.
- Customer contracting and utilization of the approximately 40 MW of additional colocation capacity and approximately 10 MW of additional GPU bare-metal compute capacity targeted for 2027.
- Finalization of debt financing for the Alabama data center.
Balance sheet and cash flow
- $142.4 million of cash and cash equivalents as at June 30, 2026.
- The Company’s cash and cash equivalents position subsequently increased to approximately $150 million as of August 14, 2026.
- $279.6 million of total assets and $265.0 million of shareholders’ equity as at June 30, 2026.
- Approximately $110 million of year-to-date capital investment and equipment deposits.
- The CEO stated the Company had no debt.
Analysis
Digi Power X reported approximately $6.6 million of Q2 2026 revenue and a GAAP net loss of $ (14.4 ) million. The revenue base included approximately $3.6 million from colocation services and legacy mining, $1.9 million from energy sales and $1.1 million from GPU rental. The GPU rental contribution came from approximately five weeks of operations and represents the Company’s first AI compute revenue.
The release presents a meaningful difference between GAAP and adjusted profitability. EBITDA was $ (10.2 ) million, while non-GAAP Adjusted EBITDA was $ 3.3 million, compared with approximately $0.1 million in the prior-year period. The reconciliation identifies 4.1 of depreciation and amortization, 5.8 of share-based compensation, 2.8 of crypto revaluation loss and 5.0 of warrant FV loss. No GAAP gross margin, operating income, EPS, operating cash flow or free cash flow was provided in the release.
Capital deployment and balance-sheet capacity are central to the operating plan. The Company reported approximately $30 million invested in GPU infrastructure representing approximately 0.6 MW of deployed AI compute capacity, approximately $110 million of year-to-date capital investment and equipment deposits, and $142.4 million of cash and cash equivalents as at June 30, 2026. It also reported $279.6 million of total assets and $265.0 million of shareholders’ equity, while stating that cash and cash equivalents subsequently increased to approximately $150 million as of August 14, 2026.
The Alabama project is the principal near-term execution milestone. Phase 1, representing 15 MW of IT load, is expected in December 2026, followed by an additional 25 MW in March 2027 for up to 40 MW of IT load. The associated 10-year agreement represents approximately $1.1 billion of contracted revenue, with an option that could increase total potential contract value to approximately $2.5 billion. The Company also stated that Phase 2 depends on adequate financing and that it is in advanced discussions with lenders regarding Alabama debt financing.
The 2027 outlook targets an annualized revenue run-rate of approximately $250 million to $300 million by Q3 2027, including approximately $140 million of annualized contracted revenue run-rate during 2027. Management expects additional available power and infrastructure, including approximately 40 MW of colocation capacity and approximately 10 MW of GPU bare-metal compute capacity, to supply the incremental revenue. The filing provides no prior-quarter financial figures or previous outlook, so changes versus the prior quarter and performance versus earlier guidance cannot be assessed from the supplied documents.
Management, verbatim
Q2 represents an important inflection point in Digi Power X’s transformation into an AI infrastructure company. We generated our first AI compute revenue , with approximately $1.1 million generated from approximately five weeks of GPU bare-metal operations.
Michel Amar, Chairman & Chief Executive Officer, Digi Power X Inc.
In this business, you are underwritten on what you have delivered, not what you have announced. Columbiana is our flagship and delivering it on schedule establishes the operating track record that hyperscale customers and project lenders require. Everything in our development pipeline is easier the day Phase 1 energizes.
Alec Amar, President, Digi Power X Inc.
The platform we built in Alabama demonstrated modular AI data centers and AI Factories at scale. Our Silicon Valley Lab will build on that foundation to advance GPU as a Service and power the next generation of AI Inference Clouds. We are bringing together top talent in MLOps, AI kernels, and GPU networking to build it.
Jagan Jeyapaul, Chief Technology Officer, Digi Power X Inc.
Not in the filing
stated, not guessed- GAAP gross profit and gross margin
- GAAP operating income or operating loss
- Non-GAAP gross margin
- GAAP net income attributable to shareholders
- GAAP EPS
- Non-GAAP EPS
- Prior-year revenue
- Prior-quarter revenue
- Revenue year-over-year change
- Revenue quarter-over-quarter change
- Prior-year GAAP net loss
- Prior-quarter GAAP net loss
- Prior-year and prior-quarter segment revenue
- Segment year-over-year and quarter-over-quarter changes
- Operating cash flow
- Free cash flow
- Debt balance as at June 30, 2026
- Share repurchases
- Dividends
- Capital-return amounts
- Guidance for gross margin, operating expenses and tax rate
- Previous-quarter outlook or guidance
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K (Item 2.02) with an attached press release covering Q2 2026 financial results and operational updates across Alabama, New York, North Carolina, and West Virginia.
Ticker impact
Digi Power X reports Q2 results, first AI compute revenue, $1.1B contracted future revenue, and expects Alabama Phase 1 delivery in Dec 2026.
Near-term upside bias on improved revenue mix and visibility, with follow-through risk tied to Alabama Phase 1 timing and financing progress.
The filing is a fresh 8-K with specific KPIs (revenue, adjusted EBITDA, cash, deployed MW) and concrete milestones (15 MW Phase 1 in Dec 2026, Phase 2 in Mar 2027) plus lender discussions for debt financing.
Market effects
Reinforces demand narrative for power-secured AI data center infrastructure and GPU bare-metal services, potentially supporting sentiment for similarly positioned AI infrastructure operators.
Alabama construction milestone and financing discussions may influence local/regional infrastructure and power-adjacent investment sentiment.
Limited direct global read-through, but adds another datapoint on scaling AI compute capacity with contracted revenue visibility.
Counterpoint
Despite contracted future revenue, the company still reports a sizable Q2 net loss and only five weeks of AI compute operations, so near-term fundamentals may remain weak.
Key entities
- issuerDigi Power X Inc.
Nasdaq-listed AI data center infrastructure operator reporting Q2 2026 results and providing 2027 outlook and financing update.
- advisorGoldman Sachs
Engaged to assist in syndicating debt financing for the Alabama data center.
