Revenue 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
ATLANTA--(BUSINESS WIRE)--August 25, 2026--
QumulusAI (Nasdaq: QMLS), a neocloud infrastructure provider purpose-built for the AI computing era, today reported financial results for the second quarter ended June 30, 2026. This is the company's first quarterly report since it began trading on the Nasdaq Global Market on July 16, 2026.
"This was the quarter our model started proving itself," said Michael Maniscalco, CEO of QumulusAI. "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."
"Revenue more than doubled year over year and gross margin expanded to 67%, as GPU activations grew revenue faster than colocation costs," said Scott Krosnowski, CFO of QumulusAI. "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."
Second Quarter 2026 Financial Highlights
All comparisons, unless otherwise noted, are to the three months ended June 30, 2025.
-- Revenue of $6.7 million, an increase of $3.6 million, or 118%, from
$3.1 million. Compute power revenue grew to $5.6 million, or
approximately 84% of total revenue, from $1.3 million, or approximately
43% of total revenue.
-- Gross profit of $4.5 million, an increase of $2.8 million, or 163%,
from $1.7 million. Gross margin expanded to 67% from 55%.
-- Operating loss of $7.7 million, compared to $2.2 million. The increase
reflects a $5.8 million rise in depreciation and amortization tied to
expanded HPC (High-Performance Computing) infrastructure, as well as
higher general and administrative costs associated with public company
readiness and headcount growth.
-- Net loss of $22.8 million, compared to net income of $12.1 million. The
current period includes 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 Company's investment in The Cloud
Minders.
-- Adjusted EBITDA loss of $0.8 million, compared to a loss of $0.3
million, as revenue growth was offset by increased operating costs
associated with public company readiness and personnel.
Summary of Financial Results
($ in thousands,
except per
share) Q2 2026 Q1 2026 Q2 2025 H1 2026 H1 2025
----------------- ------------ ------------ ----------- ------------ -----------
Revenue $ 6,713 $ 3,420 $ 3,085 $ 10,133 $ 4,957
Cost of revenue 2,242 2,136 1,386 4,378 2,601
----------------- ------- ------- ------ ------- ------
Gross profit 4,470 1,284 1,699 5,755 2,355
Gross margin 66.6% 37.5% 55.1% 56.8% 47.5%
----------------- ------- ------- ------ ------- ------
Operating loss (7,671) (5,527) (2,182) (13,197) (3,111)
Net income (loss) (22,776) (49,617) 12,119 (72,393) 10,296
----------------- ------- ------- ------ ------- ------
Adjusted EBITDA
(non-GAAP) (1) (782) (2,790) (266) (3,572) (431)
----------------- ------- ------- ------ ------- ------
Figures are rounded to the nearest thousand; totals may not sum due to rounding.
(1) Adjusted EBITDA is a non-GAAP financial measure. See the reconciliation of net
income (loss) to Adjusted EBITDA included at the end of this release.
Second Quarter Operational Highlights
Customer and Demand
-- 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, as the
Company completed its transition away from dependence on a single
marketplace.
-- AI Compute revenue reached 84% of total revenue, up from 61% in the
first quarter of 2026 and 43% in the second quarter of 2025.
Infrastructure and Capacity
-- Grew the deployed GPU fleet from 952 to 3,088, an increase of
approximately 224%.
-- Ended the quarter with 8 MW of HPC capacity under executed lease and
colocation agreements.
Recent Corporate Developments
-- Trading on the Nasdaq Global Market began under the ticker symbol
"QMLS" on July 16, 2026.
-- Became an NVIDIA Cloud Partner on July 17, 2026.
-- Signed more than $120 million in new customer agreements, including a
three-year agreement valued at more than $71 million.
-- Signed a GPU-as-a-Service agreement with DRW, a diversified trading
firm innovating across both traditional and cutting-edge markets.
-- Purchased 1,632 NVIDIA Blackwell B300 GPUs to meet accelerating
customer demand.
-- Entered a colocation agreement in metropolitan Atlanta for up to 3.75
MW, with a right of first offer on up to 7 MW of expansion capacity at
the same site.
Webcast and Conference Call
QumulusAI will host a conference call and webcast today at 5:00 p.m. Eastern Time to discuss second quarter 2026 results. The live webcast, together with this release and supplemental materials, is available at investors.qumulusai.com. A replay will be available on the same site following the call.
Non-GAAP Financial Measures
To supplement its condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States ("GAAP"), the company presents Adjusted EBITDA, a non-GAAP financial measure. QumulusAI's reasons for use of this measure and reconciliation of this non-GAAP financial measure to the most directly comparable GAAP measure and other information are included at the end of this release. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for net income (loss) or any other measure prepared in accordance with GAAP.
About QumulusAI
QumulusAI is a distributed AI cloud platform that delivers accelerated access to high-performance GPU compute. Through an inference-first, demand-led deployment model across a network of data center sites, QumulusAI brings compute closer to customer demand, helping AI teams and enterprises scale production AI workloads with speed, flexibility and control. By combining rapid deployment with flexible private cloud infrastructure, QumulusAI gives customers a faster, more adaptable path beyond the capacity constraints of traditional centralized and hyperscale cloud models. Learn more at QumulusAI.com.
Follow us on LinkedIn and X @QumulusAI.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the company's continued ability to bring contracted GPU capacity online; the amount and timing of revenue the company expects to recognize from its remaining performance obligations and its signed customer contracts; the company's ability to deploy against demand faster than competitors; the company's annualized revenue per-megawatt and realization thereof; the receipt of customer payments ahead of delivery as committed; the company's plans to expand energized capacity, including under the right of first offer at its metropolitan Atlanta site; and the company's expected finance lease payments. Words such as "anticipate," "believe," "estimate," "expect," "guidance," "intend," "can," "may," "on track," "plan," "project," "target," "will" and similar expressions are intended to identify forward-looking statements. These statements are based on management's current expectations and assumptions as of the date of this release and are subject to risks and uncertainties that could cause actual results to differ materially, including, among others, the company's dependence on a limited number of large customers; the availability and cost of power, network connectivity and specialized hardware such as graphics processing units; the company's substantial capital requirements and access to financing; competition and rapid technological change in the high-performance computing and AI markets; the company's limited operating history and history of net losses; and those described in the "Risk Factors" section of the company's registration statement on Form S-1, as amended (File No. 333-292514), filed with the U.S. Securities and Exchange Commission (SEC), and the company's quarterly report on Form 10-Q for the quarter ended June 30, 2026, as such factors may be updated in the company's subsequent filings with the SEC. QumulusAI undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by applicable law.
Condensed Consolidated Statements of Operations (Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -----------------------------
2026 2025 2026 2025
Revenue
Revenue from
cryptocurrency
mining $ 410,081 $ 148,038 $ 779,060 $ 295,839
Revenue from
mining hosting
services 693,778 1,625,701 1,642,205 3,349,152
Revenue from
compute power 5,608,946 1,311,700 7,711,458 1,311,700
----------- ---------- ----------- ----------
Total revenue 6,712,805 3,085,439 10,132,723 4,956,691
----------- ---------- ----------- ----------
Costs and expenses
Cost of revenue 2,242,402 1,386,374 4,378,199 2,601,468
General and
administrative
expenses 4,342,620 2,454,605 8,250,275 3,263,676
Sales and marketing
expenses 916,220 366,093 1,152,572 664,293
Depreciation and
amortization expense 6,882,154 1,059,900 9,548,999 1,537,948
----------- ---------- ----------- ----------
Total costs and
expenses 14,383,396 5,266,972 23,330,045 8,067,385
----------- ---------- ----------- ----------
Operating loss (7,670,591) (2,181,533) (13,197,322) (3,110,694)
----------- ---------- ----------- ----------
Other income (expenses)
Income from equity
method investments -- 629,816 21,994 864,320
Gain on sale of equity
method investments -- -- 12,569,661 --
Gain on remeasurement of
investment in TCM -- 14,549,536 -- 14,549,536
Change in fair value of
warrant liability -- -- (1,585,838) (692,103)
Change in fair value of
digital assets -- 85,756 -- 37,984
Change in fair value of
convertible note 2,380,000 -- 2,380,000 --
Change in fair value of
additional convertible
notes option 3,850,850 -- 3,850,850 --
Gain on sale of property
and equipment 1,034 -- 36,298 --
Loss on issuance of
convertible note (19,241,000) -- (73,881,850) --
Loss on extinguishment
of debt -- (71,094) -- (153,834)
Other income (expense),
net (113,905) (7,527) (187,750) 26,954
Interest expense, net (2,045,748) (601,260) (2,584,024) (940,946)
----------- ---------- ----------- ----------
Total other income
(expenses), net (15,168,769) 14,585,227 (59,380,659) 13,691,911
----------- ---------- ----------- ----------
Income (loss) before
income tax expense (22,839,360) 12,403,694 (72,577,981) 10,581,217
----------- ---------- ----------- ----------
Income tax expense
(benefit) (63,154) 285,120 (185,064) 285,120
----------- ---------- ----------- ----------
Net income (loss) $(22,776,206) $12,118,574 $(72,392,917) $10,296,097
----------- ---------- ----------- ----------
Net income (loss) in
non-controlling
interests 100,128 $ -- (150,711) $ --
----------- ---------- ----------- ----------
Net income (loss)
attributable to common
shareholders $(22,876,334) $12,118,574 $(72,242,206) $10,296,097
=========== ========== =========== ==========
Net income (loss) per
share, basic $ (0.72) $ 0.71 $ (2.28) $ 0.66
Net income (loss) per
share, diluted $ (0.72) $ 0.46 $ (2.28) $ 0.43
Weighted-average common
stock outstanding,
basic 31,740,634 16,983,356 31,680,098 15,500,358
Weighted-average common
stock outstanding,
diluted 31,740,634 26,486,792 31,680,098 24,239,377
Condensed Consolidated Balance Sheets
June 30, 2026 December 31, 2025
-------------- ---------------------
(unaudited)
ASSETS
Current assets:
Cash $ 19,967,188 $ 11,712,493
Restricted cash 19,925,104 --
Accounts receivable, net of
allowance for credit
losses of $365,133 and
$2,263 as of June 30, 2026
and December 31, 2025,
respectively 11,058,423 57,889
Prepaid expenses and other
current assets 2,253,755 1,134,851
------------ --------------
Total current assets 53,204,470 12,905,233
Property and equipment, net 44,006,002 12,502,886
Operating right-of-use assets,
net 1,374,332 1,438,970
Finance right-of-use assets,
net 47,919,004 6,996,077
Equity method investments -- 4,227,130
Investment in equity
securities 1,000,000 --
Deposits on power equipment 26,022,880 13,622,641
Goodwill 31,416,827 31,416,827
Intangible assets, net 7,227,864 7,268,513
Other assets 2,830,837 1,356,216
------------ --------------
Total assets $ 215,002,216 $ 91,734,493
============ ==============
LIABILITIES AND SHAREHOLDERS'
EQUITY (DEFICIT)
Current liabilities:
Accounts payable $ 7,546,971 $ 1,248,175
Dividend payable 359,188 359,188
Accrued expenses and
other current
liabilities 4,676,188 2,833,337
Deferred revenue 30,460,939 --
Current portion of
notes payable 1,158,583 1,684,554
Current portion of
notes payable -
related party 2,000,000 3,848,915
Current portion of
USD.AI protocol loans 6,892,685 --
Operating lease
liabilities - current
portion 106,795 97,463
Finance lease
liabilities - current
portion 13,067,517 1,645,069
Deferred tax liability 238,317 423,381
------------ --------------
Total current
liabilities 66,507,183 12,140,082
Long-term notes payable,
net of current portion 5,917,155 6,241,948
Operating lease liabilities 1,459,005 1,497,549
Finance lease liabilities 32,708,652 5,179,828
Warrant liability 2,968,793 1,382,955
Additional convertible
notes option liability 38,721,000 --
USD.AI protocol loans, net
of current portion 12,020,692 --
Convertible note payable 55,481,000 --
------------ --------------
Total long-term
liabilities 149,276,297 14,302,280
------------ --------------
Total liabilities 215,783,480 26,442,362
Commitments and contingencies
(Note 24)
Shareholders' Equity (Deficit)
Common stock - no par
value; 500,000,000 shares
authorized, 31,727,001 and
31,367,559 shares issued
and outstanding as of June
30, 2026 and December 31,
2025, respectively 99,393,515 93,400,180
Additional paid-in capital 6,827,270 6,318,290
Accumulated deficit (109,788,460) (37,546,254)
------------ --------------
Total shareholders'
equity (deficit)
attributable to
QumulusAI
shareholders (3,567,675) 62,172,216
------------ --------------
Non-controlling
interests 2,786,411 3,119,915
------------ --------------
Total shareholders'
equity (deficit) (781,264) 65,292,131
------------ --------------
Total liabilities and
shareholders' equity
(deficit) $ 215,002,216 $ 91,734,493
============ ==============
Condensed Consolidated Statements of Cash Flows (Unaudited)
For the Six Months Ended June 30,
-----------------------------------------
2026 2025
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net loss $ (72,392,917) $ 10,296,097
Adjustments to reconcile
net income (loss) to net
cash used in operating
activities:
Depreciation and
amortization
expense 4,967,754 1,537,948
Amortization of loan
origination costs 33,883 17,187
Amortization of
discount on
convertible note -- 135,334
Bad debt expense 302,244 --
Amortization of
premium on loan
receivable -- (16,281)
Non-cash interest
expense -- 6,418
Recovery of credit
losses -- (36,921)
Amortization of
right-of-use assets 4,645,883 462,598
Interest expense
under finance lease
obligations 1,756,748 133,297
Income from equity
method investments (21,994) (864,320)
Gain on sale of
equity method
investments (12,569,661) --
Gain on remeasurement
of investment in
TCM -- (14,549,536)
Change in fair value
of warrant
liability 1,585,838 692,103
Change in fair value
of digital assets -- (37,984)
Change in fair value
of convertible note (2,380,000) --
Change in fair value
of additional
convertible notes
option (3,850,850) --
Change in deferred
taxes (185,064) 285,120
Stock-based
compensation 241,809 250,552
Issuance of warrants
for services 74,659 --
Issuance of warrants
as consideration
payable to customer 192,512 --
Gain on sale of
property and
equipment (36,298) --
Loss on issuance of
convertible note 73,881,850 --
Loss on
extinguishment of
debt -- 153,834
Changes in operating
assets and liabilities:
Accounts receivable (11,302,778) 37,057
Due from related
party -- (1,590)
Prepaid expenses and
other current
assets (1,163,945) (102,410)
Proceeds from sale of
digital assets 102,068 1,438,271
Deposits -- 69,672
Mining of digital
assets (102,068) (1,290,847)
Accounts payable 6,298,796 1,158,630
Accrued expenses 1,842,851 11,192
Deferred revenue 30,460,939 --
Operating lease
liabilities (29,212) (30,219)
Intangible assets (47,833) (3,600)
Due to related party -- (547,484)
-------------- -------------
Net cash provided
by (used in)
operating
activities 22,305,214 (795,882)
-------------- -------------
CASH FLOWS FROM INVESTING
ACTIVITIES:
Purchase of property and
equipment (36,824,254) (1,014,539)
Proceeds from sale of
property and equipment 478,164 --
Proceeds from collections
of loans receivable -- 285,654
Deposits on mining
equipment -- (313,088)
Deposits on power
equipment (14,146,100) --
Data center set up costs (1,474,621) --
Purchase of equity
securities (1,000,000) --
Proceeds from sale of
U.S. dollar coin -- 391,584
Cash acquired as part of
business acquisition -- 2,449,042
Proceeds from sale of
equity method
investments 16,559,622 --
Distributions from equity
method investments 259,163 1,904,000
Distributions to joint
venture partners (182,793) --
-------------- -------------
Net cash (used
in) provided by
investing
activities (36,330,819) 3,702,653
-------------- -------------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from sale of
common stock, net of
issuance costs 5,980,834 1,897,028
Repayments on finance
lease obligations (6,518,746) (521,865)
Proceeds from
convertible note
payable 28,800,000 --
Proceeds from exercise
of warrants 12,501 --
Payment of debt issuance
costs (2,249,000) --
Proceeds from line of
credit, net of issuance
costs 20,268,245 --
Repayments of line of
credit (1,386,697) (299,077)
Repayments of notes
payable (851,845) (293,104)
Repayments of notes
payable - related party (1,849,888) (453,388)
Repayments of convertible
note payable - related
party -- (3,226,548)
-------------- -------------
Net cash provided
by (used in)
financing
activities 42,205,404 (2,896,954)
-------------- -------------
NET CHANGE IN CASH AND
RESTRICTED CASH 28,179,799 9,817
CASH AND RESTRICTED CASH,
beginning of period 11,712,493 3,970,466
CASH AND RESTRICTED CASH, end
of period $ 39,892,292 $ 3,980,283
============== =============
SUPPLEMENTAL CASH FLOW
INFORMATION
Cash paid for income taxes $ -- $ --
Cash paid for interest $ 2,229,681 $ 301,593
Non-cash financing and
investing activities
Non-cash contribution
to equity method
investment $ -- $ 115,210
Issuance of Common
Stock and Series D
Preferred Stock for
the acquisition of
TCM $ -- $ 20,250,013
Exchange of TCM stock
options resulting in
issuance of stock
options in
acquisition $ -- $ 1,883,955
Issuance of preferred
stock upon partial
conversion of
convertible note $ -- $ 164,427
Acquisition of
right-of-use asset
in exchange for
lease obligations $ 45,504,172 $ 5,820,225
Lease liabilities
arising from
obtaining
right-of-use assets $ 43,713,270 $ 6,078,929
Reconciliation of Net Income (Loss) to Adjusted EBITDA (Unaudited)
The accompanying press release refers to Adjusted EBITDA, a non-GAAP financial measure not calculated or presented in accordance with GAAP. This non-GAAP financial measure is supplemental information and in addition to the financial measures presented in the accompanying release that are calculated and presented in accordance with GAAP.
EBITDA is defined as net income (loss) before interest expense, net; income tax expense (benefit); and depreciation and amortization. Adjusted EBITDA is defined as EBITDA further adjusted to exclude stock-based compensation expense and gains and losses arising from the issuance, remeasurement, extinguishment or disposition of financial instruments, investments and other assets.
Management uses Adjusted EBITDA to evaluate operating performance, establish budgets and forecasts and make operational decisions. The company believes the measure is useful to investors because it excludes items that management does not consider indicative of the underlying operating performance of the business, and because it facilitates comparison of results across periods.
Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for net income (loss) or any other measure prepared in accordance with GAAP. Among other limitations, Adjusted EBITDA excludes depreciation and amortization of assets that are central to the company's ability to generate revenue, and excludes interest expense and amortization associated with the company's finance lease obligations, under which the company expects to make payments of approximately $9.3 million during the remainder of 2026 and approximately $20.0 million during 2027. Adjusted EBITDA as defined by the company may not be comparable to similarly titled measures reported by other companies.
Reconciliation of Net Income (Loss) to Adjusted EBITDA
For the Three Months Ended For the Six Months Ended June
June 30, 30,
---------------------------- ------------------------------
2026 2025 2026 2025
----------- ----------- ----------- -----------
Revenue $ 6,712,805 $ 3,085,439 $ 10,132,723 $ 4,956,691
Net income
(loss) (22,776,206) 12,118,574 (72,392,917) 10,296,097
Depreciation
and
amortization
(inclusive of
ROU
amortization) 6,882,154 1,059,900 9,548,999 1,537,948
Interest
expense, net 2,045,748 601,260 2,584,024 940,946
Income tax
expense
(benefit) (63,154) 285,120 (185,064) 285,120
Stock based
compensation 119,939 233,208 241,809 250,552
Change in fair
value of
warrant
liability -- -- 1,585,838 692,103
Change in fair
value of
digital
assets -- (85,756) -- (37,984)
Change in fair
value of
convertible
note (2,380,000) -- (2,380,000) --
Change in fair
value of
additional
convertible
notes option (3,850,850) -- (3,850,850) --
Gain on sale of
equity method
investments -- -- (12,569,661) --
Gain on
disposal of
property and
equipment (1,034) -- (36,298) --
Loss on
issuance of
convertible
note 19,241,000 -- 73,881,850 --
Loss on
extinguishment
of debt -- 71,094 -- 153,834
Gain on
remeasurement
of investment
in TCM -- (14,549,536) -- (14,549,536)
Adjusted EBITDA $ (782,403) $ (266,136) $ (3,572,270) $ (430,920)
=========== =========== =========== ===========
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