second quarter 2026
Filed Aug 4, 2026Cipher Digital reported Q2 2026 revenue of $25 million and Adjusted EBITDA of negative $30 million while accelerating Black Pearl capacity delivery and completing financing for the Stingray development.
The quarter included accelerated Black Pearl delivery, rent commencement and fully funded Stingray development, but reported Adjusted EBITDA was negative $30 million and the filing excerpt does not provide GAAP profitability, cash flow or balance-sheet metrics.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $25 million | – | – |
| Adjusted EBITDAnon-GAAP | negative $30 million | – | – |
What drove it
- First data center capacity at Black Pearl was delivered in August, with rent commenced.
- Cipher amended the Black Pearl campus lease with its investment-grade hyperscale tenant, accelerating initial-capacity delivery at the tenant's request.
- Cipher acquired an option on the Apollo site for up to 900 MW near San Antonio, Texas.
- Barber Lake continued toward completion, with the tenant having commenced beneficial use, including partial occupancy and deployment of network racks.
- Black Pearl Phase I data halls were moving through MEP fit-out, while Phase II concrete foundations, building steel and underground electrical were in progress.
- Stingray construction remained on schedule, with earthwork, grading, pad preparation and underground electrical work underway.
Concerns
- Adjusted EBITDA was negative $30 million.
- The filing excerpt does not provide GAAP net income or loss, operating income or loss, EPS, gross margin, operating cash flow, free cash flow, cash or debt.
- The Company identified risks related to its evolving business model and strategy, implementation of business plans, development timing and the ability to identify and realize additional opportunities.
What to watch
- Additional progress expected in the third quarter, according to management.
- Completion progress at Barber Lake, including ongoing tenant beneficial use.
- Completion of Black Pearl Phase I fit-out and progress on Phase II construction.
- Stingray construction execution through substantial completion following the project-level financing.
- ERCOT process progress for the Apollo site, which has been submitted as a studied load in Batch Zero.
Balance sheet and cash flow
- Completed bond offering to fully fund the Stingray data center development through substantial completion.
- The bond offering reimbursed Cipher for $56.7 million of previously funded project expenditures.
Analysis
Cipher reported Q2 2026 revenue of $25 million and Adjusted EBITDA of negative $30 million. The supplied filing excerpt does not include comparable-period figures, GAAP income statement detail, or margins, so the reported financial trend and the drivers of the negative Adjusted EBITDA cannot be quantified from this document.
The principal operating development was an amendment to the Black Pearl campus lease that accelerated the timeline for initial capacity at the hyperscale tenant's request. Cipher began delivering capacity at the beginning of August, two months ahead of the original schedule, and rent has commenced. Black Pearl construction continued, with Phase I data halls in MEP fit-out and Phase II foundations, building steel and underground electrical work in progress.
Development activity also extended across the other sites. Barber Lake was progressing toward completion, while its tenant had commenced beneficial use, including partial building occupancy and deployment of network racks. Stingray construction was described as on schedule, and the completed bond offering fully funded the project through substantial completion while reimbursing Cipher for $56.7 million of previously funded project expenditures.
Cipher added future development optionality by acquiring an option for Apollo, a site with up to 900 MW near San Antonio, Texas. The site has been submitted as a studied load in ERCOT's Batch Zero process. Management expects significant additional progress in the third quarter, but the release provides no quantitative financial outlook. Investors will need subsequent disclosures to assess construction conversion into revenue, the path of Adjusted EBITDA, project funding, and the financial impact of the Black Pearl rent commencement.
Management, verbatim
We are proud to have delivered our first HPC data center capacity ahead of schedule and announce that rent has commenced at the site.
Tyler Page, Chief Executive Officer
A core strength of our strategy is its repeatability, and in the second quarter, we demonstrated that once again. We accessed capital markets to fund another one of our leases, secured an option on a new site, and delivered accelerated capacity to our tenant, further building our position as a leading HPC development platform.
Tyler Page, Chief Executive Officer
Not in the filing
stated, not guessed- Revenue prior-year figure, prior-quarter figure, year-over-year change and sequential change.
- Segment revenue and segment comparisons.
- Gross profit, gross margin and related comparisons.
- GAAP operating income or loss and operating margin.
- GAAP net income or loss.
- GAAP diluted EPS and non-GAAP EPS.
- Adjusted EBITDA comparable-period figures and changes.
- Operating cash flow and free cash flow.
- Cash, cash equivalents, restricted cash, total debt and net debt.
- Capital-return information, including share repurchases and dividends.
- Quantitative forward revenue, gross-margin, operating-expense, tax-rate or other financial guidance.
- Previous outlook for comparison with reported results.
- Bond offering amount, interest rate, maturity and other financing terms.
AlphaAI 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.