Q3 FY2026
Filed Nov 10, 2026Q3 2026 revenue rose to $14.8 million on compute capacity coming online, with first positive Adjusted EBITDA quarter, while GAAP operating loss widened to $41.6 million
Revenue growth of 376% year over year and the first positive quarter of non-GAAP Adjusted EBITDA stand against an operating loss of $41,555,908 that widened sharply, a GAAP net loss of $14,442,571 that was narrowed only by $32.3 million of non-cash fair value gains, and nine-month net loss of $86,835,488.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, Q3 2026GAAP | $14,755,114 | – | 376% |
| Revenue from compute power, Q3 2026GAAP | $14,126,265 | – | – |
| Revenue from mining hosting services, Q3 2026GAAP | $365,854 | – | – |
| Revenue from cryptocurrency mining, Q3 2026GAAP | $262,995 | – | – |
| Cost of revenue (exclusive of depreciation and amortization), Q3 2026GAAP | $4,161,145 | – | – |
| General and administrative expenses, Q3 2026GAAP | $35,671,537 | – | – |
| Sales and marketing expenses, Q3 2026GAAP | $1,605,602 | – | – |
| Depreciation and amortization expense, Q3 2026GAAP | $14,872,738 | – | $13.4 million increase, as stated in the release |
| Total costs and expenses, Q3 2026GAAP | $56,311,022 | – | – |
| Operating loss, Q3 2026GAAP | $(41,555,908) | – | – |
| Change in fair value of convertible note, Q3 2026GAAP | $13,650,058 | – | – |
| Change in fair value of additional convertible notes option, Q3 2026GAAP | $16,537,550 | – | – |
| Change in fair value of warrant liability, Q3 2026GAAP | $2,140,561 | – | – |
| Interest expense, net, Q3 2026GAAP | $(5,369,084) | – | – |
| Income tax expense, Q3 2026GAAP | $36,237 | – | – |
| Net loss, Q3 2026GAAP | $(14,442,571) | – | – |
| Net loss attributable to common shareholders, Q3 2026GAAP | $(14,459,384) | – | – |
| Net loss per share attributable to common shareholders, basic and diluted, Q3 2026GAAP | $(0.43) | – | – |
| Net loss margin, Q3 2026GAAP | (98) % | – | – |
| Adjusted EBITDA, Q3 2026non-GAAP | $3,685,962 | – | – |
| Adjusted EBITDA margin, Q3 2026non-GAAP | 25 % | – | – |
| Total revenue, nine months 2026GAAP | $24,887,837 | – | – |
| Revenue from compute power, nine months 2026GAAP | $21,837,723 | – | – |
| Revenue from mining hosting services, nine months 2026GAAP | $2,008,059 | – | – |
| Revenue from cryptocurrency mining, nine months 2026GAAP | $1,042,055 | – | – |
| Cost of revenue (exclusive of depreciation and amortization), nine months 2026GAAP | $8,539,344 | – | – |
| General and administrative expenses, nine months 2026GAAP | $43,921,812 | – | – |
| Sales and marketing expenses, nine months 2026GAAP | $2,758,174 | – | – |
| Depreciation and amortization expense, nine months 2026GAAP | $24,421,737 | – | – |
| Total costs and expenses, nine months 2026GAAP | $79,641,067 | – | – |
| Operating loss, nine months 2026GAAP | $(54,753,230) | – | – |
| Loss on issuance of convertible note, nine months 2026GAAP | $(73,881,850) | – | – |
| Interest expense, net, nine months 2026GAAP | $(7,953,108) | – | – |
| Net income (loss), nine months 2026GAAP | $(86,835,488) | – | – |
| Net loss attributable to common shareholders, nine months 2026GAAP | $(86,701,590) | – | – |
| Net loss per share attributable to common shareholders, basic and diluted, nine months 2026GAAP | $(2.68) | – | – |
| Adjusted EBITDA, nine months 2026non-GAAP | $113,692 | – | – |
| Net cash provided by (used in) operating activities, nine months 2026GAAP | $54,276,127 | – | – |
| Net cash used in investing activities, nine months 2026GAAP | $(121,693,350) | – | – |
| Net cash provided by financing activities, nine months 2026GAAP | $86,840,122 | – | – |
| Net change in cash and restricted cash, nine months 2026GAAP | $19,422,899 | – | – |
| Remaining performance obligations, end of Q3 2026other | $515M | – | – |
| Cumulative signed customer contract value, end of Q3 2026other | $528.7M | – | – |
| Active capacity, end of Q3 2026other | 8 MW | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Compute powerRelease states compute power revenue grew to $14.1 million from $1.4 million in Q3 2025. The CEO said much of the capacity coming online had not yet billed for a full period. | $14,126,265 in Q3 2026 (release: $14.1 million, approximately 96% of total revenue) | – | – |
| Mining hosting servicesNo driver stated in the filing. | $365,854 in Q3 2026 (Q3 2025: $1,445,669) | – | – |
| Cryptocurrency miningNo driver stated in the filing. | $262,995 in Q3 2026 (Q3 2025: $211,765) | – | – |
Capital returns
- No share repurchases are printed in the filing.
- Dividends paid on common stock: none printed for nine months 2026 (table shows no amount); $(36,759) for nine months 2025.
- Dividend payable on the balance sheet: $359,188 at September 30, 2026 and $359,188 at December 31, 2025.
- Proceeds from sale of common stock, net of issuance costs, nine months 2026: $5,980,834 (nine months 2025: $21,355,080).
- Common stock issued for professional services in connection with the direct listing: $26,412,529 in Q3 2026 and nine months 2026, a non-cash item, per the release.
What drove it
- Company explanation: the operating loss increase reflects a $13.4 million increase in depreciation and amortization tied to expanded HPC infrastructure.
- Company explanation: the operating loss increase also reflects higher general and administrative costs tied to public company readiness, including $26.4 million related to shares of common stock issued for professional services in connection with the direct listing, and headcount growth.
- Company explanation: Adjusted EBITDA turned positive, which the release attributes to growth in compute revenue.
- Company explanation: the net loss of $14.4 million includes $32.3 million of non-cash gains from changes in fair value of the convertible note, the related option and the warrant liability.
- CEO statement: remaining performance obligations grew to $515.0 million from $173.1 million at the end of Q2 2026, and the company states that it sells capacity before energizing it.
- Company statements: $240.9 million of new three-year take-or-pay agreements covering more than 2,000 NVIDIA Blackwell B300 GPUs across two dedicated clusters; the $71.9 million three-year Blackwell agreement is in production with every GPU billing within three months of signing.
- Capacity: 8 MW of active capacity; 1.2 MW contracted in Denver ready for service in Q1 (per release); 0.5 MW contracted in Columbia, South Carolina, ready for service in December 2026.
- Gain on sale of equity method investments: $12,732,446 in nine months 2026 and $162,785 in Q3 2026, per the statements.
Concerns
- GAAP operating loss of $(41,555,908) in Q3 2026 versus $(2,755,366) in Q3 2025, and $(54,753,230) for nine months 2026 versus $(5,866,060).
- GAAP net loss of $(86,835,488) for nine months 2026, against net income of $831,828 for nine months 2025. The nine-month figure includes a $(73,881,850) loss on issuance of convertible note.
- General and administrative expenses rose to $35,671,537 in Q3 2026, including the $26.4 million non-cash charge for shares issued for professional services, per the company.
- Net income for Q3 2026 depends on non-cash fair value gains of $13,650,058, $16,537,550 and $2,140,561 on the convertible note, option and warrant liability; the release describes these as non-cash.
- Interest expense, net rose to $(5,369,084) in Q3 2026 from $(509,866), and to $(7,953,108) for nine months 2026 from $(1,450,812).
- Accumulated deficit increased to $(124,247,844) from $(37,546,254) at December 31, 2025.
- Forward-looking statements cite dependence on a limited number of large customers, power and hardware availability, substantial capital requirements and access to financing, and a limited operating history with net losses.
- Total liabilities of $368,810,803 are well above total shareholders' equity of $25,251,549 at September 30, 2026.
What to watch
- Conversion of the $515.0 million remaining performance obligations into recognized revenue as the 8 MW of active capacity bills.
- Timing of the Denver (1.2 MW, Q1 2027 per release) and Columbia, South Carolina (0.5 MW, December 2026) capacity coming into service.
- Financing: the company has convertible note, notes payable, line of credit and finance lease obligations, and expects finance lease payments of about $13.0 million for the rest of 2026 and about $53.3 million in 2027.
- Revenue-based trajectory: the company says the third quarter is early in the ramp and that much capacity has not yet billed for a full period.
- Future movements in the fair value of the convertible note, the additional convertible notes option and the warrant liability, which drove large non-cash gains this quarter.
- The company's guidance, which the release says will be provided on the earnings call and webcast at 5:00 p.m. Eastern Time.
Balance sheet and cash flow
- Cash at September 30, 2026: $21,909,713 (December 31, 2025: $11,712,493). Restricted cash at September 30, 2026: $9,225,679 (none printed at December 31, 2025).
- Total assets: $394,062,352 at September 30, 2026 (December 31, 2025: $91,734,493).
- Total liabilities: $368,810,803 at September 30, 2026 (December 31, 2025: $26,442,362).
- Total shareholders' equity: $25,251,549 at September 30, 2026 (December 31, 2025: $65,292,131).
- Accumulated deficit: $(124,247,844) at September 30, 2026 (December 31, 2025: $(37,546,254)).
- Deferred revenue: current portion $33,174,971 and non-current $45,822,451 at September 30, 2026 (none printed at December 31, 2025).
- Convertible note payable (non-current): $32,040,000 at September 30, 2026. Additional convertible notes option liability: $22,183,450.
- Finance lease liabilities: current $39,136,857 and non-current $83,353,330 at September 30, 2026.
- Purchase of property and equipment, nine months 2026: $(137,021,298) (nine months 2025: $(1,226,323)).
- Change in deferred revenue within operating cash flow, nine months 2026: $78,997,422, shown as a separate line in the operating cash flow statement.
- Proceeds from notes payable, net of issuance costs, nine months 2026: $51,378,460. Proceeds from line of credit, net of issuance costs: $34,996,018. Proceeds from convertible note payable: $28,800,000.
- Repayments on finance lease obligations, nine months 2026: $(27,399,088) (nine months 2025: $(1,289,600)).
- Management expects finance lease payments of approximately $13.0 million during the remainder of 2026 and approximately $53.3 million during 2027, per the Adjusted EBITDA discussion.
Analysis
QumulusAI reported third quarter 2026 total revenue of $14,755,114 against $3,100,785 a year earlier, a 376% increase printed in the release. Compute power revenue of $14,126,265 accounted for almost all of it, against $1,443,351 in the prior-year quarter, while mining hosting services fell to $365,854 from $1,445,669 and cryptocurrency mining rose to $262,995 from $211,765. For the nine months, compute power revenue was $21,837,723 against $2,755,051, which is the main source of the top-line change. The release states that revenue doubled sequentially for the second straight quarter, but the prior-quarter revenue figure is not printed in the documents, so that claim is shown here as the company's statement only.
Costs moved well ahead of revenue. Total costs and expenses were $56,311,022 in Q3 2026 against $5,856,151, with general and administrative expenses at $35,671,537 and depreciation and amortization at $14,872,738. The company attributes the increase to depreciation tied to expanded HPC infrastructure and to public company readiness costs, including $26.4 million of common stock issued for professional services in connection with the direct listing. The operating loss therefore widened to $(41,555,908) from $(2,755,366). Interest expense, net, rose to $(5,369,084) from $(509,866).
GAAP net loss was $(14,442,571) against $(9,464,269). The release says the quarter includes $32.3 million of non-cash gains from changes in fair value of the convertible note, the related option and the warrant liability, which are the items that narrowed the net loss at the below-operating line. Net loss per share was $(0.43) against $(5.34). Adjusted EBITDA, a non-GAAP measure, was $3,685,962 against $(602,926), with the release describing it as the first positive quarter; the company attributes this to compute revenue growth. Nine-month GAAP net loss was $(86,835,488), compared with net income of $831,828 a year earlier, and includes a $(73,881,850) loss on issuance of convertible note.
On the balance sheet, total assets rose to $394,062,352 from $91,734,493 at December 31, 2025, while total liabilities reached $368,810,803 and shareholders' equity was $25,251,549. Property and equipment, net, was $138,629,171 and finance right-of-use assets were $133,044,741. Operating cash flow for nine months 2026 was $54,276,127, and the operating cash flow statement shows a $78,997,422 change in deferred revenue as a separate line. Investing outflows were $(121,693,350), led by $(137,021,298) of property and equipment purchases, and financing inflows were $86,840,122 from notes, a line of credit, a convertible note and common stock. Cash and restricted cash ended at $31,135,392. No share repurchases were reported.
Forward commentary is qualitative. The company reports remaining performance obligations of $515.0 million, up from $173.1 million at the end of Q2 2026, cumulative signed customer contract value of $528.7 million, and new three-year take-or-pay agreements totaling $240.9 million. Active capacity is 8 MW, with 1.2 MW in Denver and 0.5 MW in Columbia, South Carolina, slated for service in Q1 and December 2026 respectively. No numeric guidance is included in the filing, which states that guidance will be given on the call. The read is mixed: contracted backlog and revenue scale are clear, while GAAP losses, financing needs and the reliance on non-cash items in the net result are the main points for investors to weigh.
Management, verbatim
Revenue doubled again this quarter, and remaining performance obligations grew to $515.0 million from $173.1 million at the end of the second quarter. That’s the model doing its job: we sell the capacity before we energize it, we deploy into pockets of existing power, and we bring it online in months, not years,
Michael Maniscalco, CEO, QumulusAI
And the third quarter is still early in that ramp. We had compute coming online throughout the quarter, and into the fourth, so much of it hasn’t yet billed for a full period.
Michael Maniscalco, CEO, QumulusAI
Not in the filing
stated, not guessed- Q2 2026 (prior quarter) revenue and other prior-quarter income statement figures, which are needed to verify the sequential doubling claim and to populate prior_quarter fields.
- Prior-year percentage changes for most income statement lines (only total revenue change of 376% and the $13.4 million D&A increase are printed).
- Forward guidance for revenue, gross margin, operating expenses and tax rate; the release states guidance will be provided on the call and it is not in the document.
- Segment-level revenue changes beyond the three revenue lines printed; the filing does not print percentage changes for the individual revenue lines.
- Gross margin, which is not printed as a figure in the document.
- Nine-month Adjusted EBITDA margin: the reconciliation table shows no printed figure for 2026.
- Share price reaction, analyst consensus and analyst estimates, which are not in the documents.
- Prior-year and prior-quarter comparisons for remaining performance obligations, cumulative contract value and active capacity (only the Q2 2026 RPO figure is printed).
- Dividends paid for nine months 2026 (table shows no amount) and any share repurchase activity.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.