Second Quarter 2026
Filed Aug 25, 2026Revenue more than doubles year over year to $6.7 million as contracted GPU capacity continues to come online; cumulative signed customer contract value reaches $282.5 million.
Revenue grew 118% year over year, gross margin expanded to 67%, and compute power became 84% of revenue, but the company reported a $22.8 million GAAP net loss, a $7.7 million operating loss, an Adjusted EBITDA loss, substantial lease and debt-related liabilities, and total shareholders' equity of $(781,264).
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $6.7 million | – | an increase of $3.6 million, or 118% |
| Compute power revenueGAAP | $5.6 million | – | – |
| Revenue from cryptocurrency miningGAAP | $410,081 | – | – |
| Revenue from mining hosting servicesGAAP | $693,778 | – | – |
| Cost of revenueGAAP | $2.2 million | – | – |
| Gross profitGAAP | $4.5 million | – | an increase of $2.8 million, or 163% |
| Gross marginGAAP | 66.6% | – | expanded to 67% from 55% |
| General and administrative expensesGAAP | $4,342,620 | – | – |
| Sales and marketing expensesGAAP | $916,220 | – | – |
| Depreciation and amortization expenseGAAP | $6,882,154 | – | a $5.8 million rise in depreciation and amortization tied to expanded HPC infrastructure |
| Total costs and expensesGAAP | $14,383,396 | – | – |
| Operating lossGAAP | $(7.7) million | – | – |
| Net lossGAAP | $(22.8) million | – | – |
| Net loss attributable to common shareholdersGAAP | $(22,876,334) | – | – |
| Net loss per share, basicGAAP | $(0.72) | – | – |
| Net loss per share, dilutedGAAP | $(0.72) | – | – |
| Adjusted EBITDA lossnon-GAAP | $(0.8) million | – | – |
| Cumulative signed customer contract valueother | $282.5 million | – | – |
| Aggregate expected take-or-pay value of 21 new direct customer AI compute contractsother | $169.7 million | – | – |
| Deployed GPU fleetother | 3,088 | an increase of approximately 224% | – |
| HPC capacity under executed lease and colocation agreementsother | 8 MW | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Compute powerAI Compute revenue reached 84% of total revenue, up from 61% in the first quarter of 2026 and 43% in the second quarter of 2025; GPU activations grew revenue faster than colocation costs. | $5.6 million | – | – |
| Cryptocurrency miningRevenue from cryptocurrency mining was reported in the condensed consolidated statements of operations. | $410,081 | – | – |
| Mining hosting servicesRevenue from mining hosting services was reported in the condensed consolidated statements of operations. | $693,778 | – | – |
What drove it
- Revenue growth reflected AI Compute that had already been sold coming online and beginning to generate revenue.
- The company signed 21 new direct customer AI compute contracts during the quarter with aggregate expected take-or-pay contract value of $169.7 million.
- Direct customer relationships grew to more than 96% of the recurring revenue base at quarter end, from less than 10% a year earlier.
- The deployed GPU fleet grew from 952 to 3,088.
- The company purchased 1,632 NVIDIA Blackwell B300 GPUs to meet accelerating customer demand.
- Most recent Blackwell contracts are generating between $18 million and $20 million of annualized revenue per megawatt, compared with just over $16 million across the installed base.
- Deferred revenue rose $30.5 million in the first half as customers committed and paid ahead of delivery.
Concerns
- Operating loss was $(7.7) million, compared with $(2.2) million, reflecting a $5.8 million rise in depreciation and amortization, public company readiness costs, and headcount growth.
- Net loss was $(22.8) million and included a $19.2 million non-cash loss on the issuance of convertible notes; the prior-year period included a $14.5 million non-cash gain on remeasurement of the investment in The Cloud Minders.
- Adjusted EBITDA was a loss of $(0.8) million, compared with a loss of $(0.3) million.
- The company expects finance lease payments of approximately $9.3 million during the remainder of 2026 and approximately $20.0 million during 2027.
- The release identifies dependence on a limited number of large customers, availability and cost of power, network connectivity and specialized hardware, substantial capital requirements and access to financing, competition, rapid technological change, limited operating history, and history of net losses as risks.
What to watch
- The amount and timing of revenue recognized from remaining performance obligations and signed customer contracts.
- The pace at which contracted GPU capacity is brought online and deployed against demand.
- Execution on the metropolitan Atlanta colocation agreement for up to 3.75 MW and the right of first offer on up to 7 MW of expansion capacity at the same site.
- Whether direct customer relationships remain more than 96% of the recurring revenue base.
- Deferred revenue conversion, accounts receivable, finance lease obligations, and the company's access to financing.
Balance sheet and cash flow
- Cash was $19,967,188 as of June 30, 2026, compared with $11,712,493 as of December 31, 2025.
- Restricted cash was $19,925,104 as of June 30, 2026, compared with $0 as of December 31, 2025.
- Cash and restricted cash were $39,892,292 at June 30, 2026.
- Accounts receivable, net was $11,058,423 as of June 30, 2026, compared with $57,889 as of December 31, 2025.
- Deferred revenue was $30,460,939 as of June 30, 2026, compared with $0 as of December 31, 2025.
- Property and equipment, net was $44,006,002 and finance right-of-use assets, net were $47,919,004 as of June 30, 2026.
- Convertible note payable was $55,481,000, additional convertible notes option liability was $38,721,000, USD.AI protocol loans were $6,892,685 current and $12,020,692 long-term, and finance lease liabilities were $13,067,517 current and $32,708,652 long-term as of June 30, 2026.
- Total liabilities were $215,783,480 and total shareholders' equity (deficit) was $(781,264) as of June 30, 2026.
- Net cash provided by operating activities was $22,305,214 for the six months ended June 30, 2026, compared with net cash used in operating activities of $(795,882) in the prior-year period.
- Net cash used in investing activities was $(36,330,819) for the six months ended June 30, 2026, including $(36,824,254) of purchases of property and equipment and $(14,146,100) of deposits on power equipment.
- Net cash provided by financing activities was $42,205,404 for the six months ended June 30, 2026, including $28,800,000 of proceeds from convertible note payable and $20,268,245 of proceeds from line of credit, net of issuance costs.
Analysis
QumulusAI reported a sharp acceleration in revenue as contracted GPU capacity entered service. Revenue was $6.7 million, up 118% from $3.1 million, and compute power revenue was $5.6 million, approximately 84% of total revenue, versus approximately 43% a year earlier and 61% in the first quarter of 2026. The company also signed 21 new direct AI compute contracts with $169.7 million of aggregate expected take-or-pay value, while cumulative signed customer contract value reached $282.5 million.
Mix and utilization of the GPU fleet supported a material improvement in gross profitability. Gross profit increased 163% to $4.5 million and gross margin reached 66.6%, compared with 55.1% a year earlier and 37.5% in the first quarter. Management attributed the expansion to GPU activations growing revenue faster than colocation costs. The fleet grew from 952 to 3,088 deployed GPUs, and the company ended the quarter with 8 MW of HPC capacity under executed lease and colocation agreements.
The growth has not yet covered the expanding cost base. The GAAP operating loss was $(7.7) million, versus $(2.2) million, as depreciation and amortization expense increased to $6,882,154 from $1,059,900, alongside higher general and administrative and sales and marketing expenses. The GAAP net loss was $(22.8) million, compared with net income of $12.1 million in the prior-year period. Results included a $19.2 million non-cash loss on issuance of convertible notes, whereas the prior-year period included a $14.5 million non-cash gain on remeasurement of the investment in The Cloud Minders. Adjusted EBITDA was a $(0.8) million loss, compared with a $(0.3) million loss.
Cash generation in the first half was supported by customer prepayments, with deferred revenue rising to $30,460,939 from $0 at December 31, 2025 and operating cash flow of $22,305,214. At the same time, the company invested $36,824,254 in property and equipment and $14,146,100 in deposits on power equipment during the first half, while financing activity included $28,800,000 of convertible-note proceeds and $20,268,245 of line-of-credit proceeds, net of issuance costs. Total liabilities were $215,783,480 and total shareholders' equity was $(781,264) at June 30, 2026.
No formal forward financial guidance was provided. The operating milestones to monitor are realization of revenue from signed contracts, activation of purchased Blackwell GPUs, and expansion of energized capacity, including the Atlanta colocation agreement for up to 3.75 MW and potential additional capacity. Management also disclosed expected finance lease payments of approximately $9.3 million during the remainder of 2026 and approximately $20.0 million during 2027, making deployment timing, customer payments ahead of delivery, and financing capacity central to execution.
Management, verbatim
This was the quarter our model started proving itself. AI Compute we had already sold came online and started generating revenue. We signed 21 new direct contracts in the quarter, and last week we contracted up to 3.75 MW in metropolitan Atlanta, our home market, with potential to expand at the same site. Demand is not our constraint. Deploying against it faster than competitors is our goal.
Michael Maniscalco, CEO of QumulusAI
Revenue more than doubled year over year and gross margin expanded to 67%, as GPU activations grew revenue faster than colocation costs. Our most recent Blackwell contracts are generating between $18 million and $20 million of annualized revenue per megawatt, compared with just over $16 million across the installed base. Customers are also committing and paying ahead of delivery — deferred revenue rose $30.5 million in the first half, contributing to $22.3 million of operating cash flow.
Scott Krosnowski, CFO of QumulusAI
Not in the filing
stated, not guessed- Formal forward revenue guidance
- Formal forward gross-margin guidance
- Formal forward operating-expense guidance
- Formal forward tax-rate guidance
- Prior-quarter outlook for comparison
- Non-GAAP EPS
- Free cash flow
- Share repurchases
- Dividend declaration or payment details
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.