Shares declined 3.9% on concerns around the cautious growth outlook despite initial AI revenue recognition and positive adjusted EBITDA. Investors appear to be weighing the slow pace of commercial ramp-up and significant net loss in the quarter.
- Reported Q2 revenue was $6.6 million, reflecting early-stage AI compute and colocation revenue; GPU bare-metal rental contributed $1.1 million from about five weeks of operations.
- Adjusted EBITDA was positive at $3.3 million, improving $3.2 million year-over-year, but net loss remained substantial at $14.4 million due to depreciation and noncash charges.
- Cash and cash equivalents stood at roughly $150 million, with no long-term debt and working capital of $131 million, reflecting significant capital raised and invested in the Columbiana, Alabama data center build-out.
- Management anticipates Q3 revenue doubling from Q2, but AI operations and GPU deployments remain at an early stage; Phase 1 and Phase 2 data center expansions are targeted for completion late 2026 and early 2027, respectively.
- While debt financing is in active discussions, capital expenditures remain heavy (~$110 million YTD), and dilution concerns persist, leaving investors cautious on near-term profitability and growth visibility.
Community Discussion