Big Digital Energy — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for Q3 2026 was $8.7 million, representing a 41% increase quarter-over-quarter (QoQ).
• Digital colocation revenue was $2.4 million, a 30% decrease QoQ.
• Energy management revenue was $6.1 million, a 132% increase QoQ.
• Digital assets mining revenue was $0.2 million, a 374% increase QoQ.
• Net loss for Q3 2026 was $6.5 million.
• Adjusted EBITDA loss for Q3 2026 was $3.4 million.
• Stockholders' equity was $8.5 million as of September 30, 2026, compared to a deficit of $3.1 million as of December 31, 2025.
• Cash and cash equivalents decreased to $3.1 million from $13.3 million at the beginning of the period.
• Average monthly operating cash burn declined to approximately $850,000 in Q3 2026 from approximately $3.4 million in the first half of 2026.
• Trade and other receivables were $7.2 million as of September 30, 2026, down from $9.6 million as of December 31, 2025.
• Current liabilities were $44.7 million as of September 30, 2026, down from $58.8 million as of December 31, 2025.

Guidance and Future Outlook:

• Management expects to achieve positive operating cash flow in the first quarter of 2027.
• Priorities for year-end 2026 and 2027 include converting existing frameworks into definitive agreements, establishing commercial relationships, securing financing, and expanding the portfolio of powered assets.
• The planned Tensor IQ AI/HPC campus at Hood County targets availability in the second quarter of 2027.
• The Company anticipates generating approximately $546 million in power-lease-related revenue to Texas Load House over an initial 15-year term based on the indicative LOI terms, assuming full utilization; these amounts are not contracted revenue.

Business Segments and Product Lines:

• The Six Thirty AI arrangement monetizes underutilized infrastructure at the Midland, Pennsylvania facility, covering approximately 25,000 miners and 75 MW of computing capacity at full utilization.
• Texas Load House, a 50/50 joint venture with 10NetZero, acquired 30 acres of the 50-acre Hood County, Texas site for approximately $10 million in July.
• The Hood County site has approximately 17 MW of energized capacity and a pathway toward 111 MW of grid power subject to ERCOT validation.
• The Company entered into a non-binding letter of intent (LOI) with Tensor IQ for a planned campus at Hood County with up to 17 MW of gross capacity.
• The LOI contemplates an initial deployment of 7,748 NVIDIA B300 GPUs.
• Management is actively evaluating additional powered assets, leveraging an affiliation with SixThirty.AI which has a development pipeline of just under 600 megawatts.
• Phase 1 design basis for the Hood County project has been completed, and the project is advancing into basis of design and schematic design.

Market and Competitive Landscape:

• The Company is positioning itself as a competitive provider of digital infrastructure solutions to support demand for AI data centers, citing growing demand for AI infrastructure and the increasing difficulty of securing reliable power.
• Energized capacity stands at approximately 169 MW as of Q3 2026.
• Additional capacity at Hood County is approximately 17 MW.
• Capacity deployed under the Six Thirty AI Agreement is approximately 20 MW.
• Northland Capital Markets remains engaged to help evaluate financing alternatives across the portfolio.

Risks and Challenges:

• The LOI with Tensor IQ is non-binding, and definitive agreements may not be negotiated, executed, or consummated on anticipated terms or at all.
• Risks include the creditworthiness and performance of counterparties (Tensor IQ, 10NetZero, Texas Load House).
• The Company faces risks regarding its ability to continue as a going concern and maintain its Nasdaq listing.
• There is a need for and potential unavailability of additional financing.
• Risks include the availability and cost of power, grid interconnection timing, and permitting/development feasibility.
• Volatility in digital asset prices and reductions in mining incentives pose risks.
• Evolving and uncertain regulation of digital assets, AI, and high-performance computing is a concern.

Management Commentary and Tone:

• CEO Phil Stanley stated the Company continues to execute a strategy of acquiring, developing, and monetizing powered infrastructure for AI and high-performance computing markets.
• Management emphasized that energized capacity and development-ready sites are becoming more valuable as demand grows.
• The tone reflects a focus on converting assets into commercial projects through disciplined development, partnerships, and capital formation.
• Management highlighted progress in improving operational efficiency and reducing cash burn.
• The Company views the Six Thirty AI arrangement as a mechanism to provide cash flow today while developing higher-value AI and HPC applications.

Other Key Points:

• A $4.9 million loan provided by Big Digital Energy to 10NetZero to fund part of the Hood County acquisition was fully repaid in October 2026.
• The Company recorded a gain on legal settlements of $332,421 in Q3 2026 and $10.5 million for the nine months ended September 30, 2026.
• Proceeds from Series D Convertible Stock, net of share issuance costs, totaled $14.0 million for the nine months ended September 30, 2026.
• Proceeds from common share issuances and equity conversions settled in cash were $7.2 million for the nine months ended September 30, 2026.
• A dividend on Series D Convertible Preferred Stock of $19,493 was declared for the nine months ended September 30, 2026.
• The Company has 15,000 shares of Series D Convertible Preferred Stock issued and outstanding as of September 30, 2026.
• Common stock issued and outstanding increased to 6,419,242 shares as of September 30, 2026, from 3,617,221 shares as of December 31, 2025.