Cipher Digital — Third Quarter 2026 Earnings Summary

Financial Performance:

• Q3 2026 total revenue was $27 million, comprised of $20.8 million from bitcoin mining and $5.9 million from HPC leasing.
• Q3 2026 Adjusted EBITDA was negative $10 million, compared to positive $40.8 million in Q3 2025.
• Nine months ended September 30, 2026, total revenue was $86.4 million, down from $164.2 million in the same period of 2025.
• Nine months ended September 30, 2026, Adjusted EBITDA was negative $88.2 million, compared to positive $80.2 million in the prior year period.
• Q3 2026 net income was $31.6 million, compared to a net loss of $3.3 million in Q3 2025.
• Nine months ended September 30, 2026, net loss was $350.2 million, compared to a net loss of $88.0 million in the prior year period.
• As of September 30, 2026, total assets were $7.67 billion, up from $4.29 billion as of December 31, 2025.
• As of September 30, 2026, total liabilities were $7.04 billion, up from $3.46 billion as of December 31, 2025.
• Deferred revenue as of September 30, 2026, was $46.2 million, compared to $0 as of December 31, 2025.
• Long-term borrowings, net, increased to $5.45 billion as of September 30, 2026, from $2.71 billion as of December 31, 2025.
• Cash and cash equivalents were $656.0 million as of September 30, 2026, compared to $628.3 million as of December 31, 2025.

Guidance and Future Outlook:

• Multiple data halls at Black Pearl and Barber Lake are scheduled to come online through year-end.
• Construction at Barber Lake remains on track to meet amended milestones.
• Black Pearl data center continues progress toward completion with ongoing equipment installation and energization.
• Stingray construction is advancing with steel erection on schedule and shell construction expected to be completed in the fourth quarter.
• The Company is advancing design work and tenant discussions for 270 MW of pipeline capacity available in 2027.
• Horizon, a 70 MW site in Texas, is expected to energize in 2029.
• The Company aims to become a leading HPC development platform built for hyperscale.

Business Segments and Product Lines:

• The Company recognized its first HPC lease revenue following rent commencement at Black Pearl.
• The Barber Lake lease was amended to a 20-year term, increasing total contracted revenue at the site to approximately $9.1 billion.
• The Barber Lake amendment adds approximately $5.2 billion of incremental rent aligned with a phased delivery schedule.
• The Company received a conditional base load classification for 1 GW at Colchis and conditional studied load classifications with PCLR designations for an additional 1.6 GW through ERCOT's Batch Zero process.
• Development commenced on lateral natural gas pipelines capable of supporting up to 2.5 GW of on-site generation.
• The Company acquired Horizon, a 70 MW site in Texas.
• The development pipeline totals approximately 5.9 GW.

Market and Competitive Landscape:

• Demand for compute is growing, with deepening relationships with leading hyperscalers and AI labs.
• The Company is positioning itself for the next phase of growth by adding new capacity to its pipeline and investing earlier in projects.

Risks and Challenges:

• Forward-looking statements are subject to risks including volatility in securities price, changes in competitive and regulated industry conditions, and evolving business model strategy.
• Risks include variations in performance across competitors, changes in laws and regulations, and the ability of customers to perform contractual obligations.
• Potential risks involve the ability to complete data centers and strategic growth initiatives in a timely manner or within cost estimates, and risks related to development, construction, and operation.
• Risks include availability of capital and financing on acceptable terms, changes in market demand, and the ability to implement business plans.

Management Commentary and Tone:

• CEO Tyler Page stated, "Cipher was built for this market, and this quarter we took important steps to strengthen our position for the long term."
• Management emphasized that early decisions regarding partnerships, project structure, regulatory navigation, and community engagement were made for current conditions.
• Management noted they are advancing design work before committing to new leases to be well-positioned for growth.

Other Key Points:

• Completed an $850 million offering of 0.000% convertible senior notes due 2032 to fund additional equity investment into Barber Lake.
• Capped call transactions associated with the notes offering raised the effective conversion price to $28.35 per share.
• Equitized approximately $165.9 million of the 1.750% convertible notes due 2030, retiring more than 90% of those notes.
• The Company changed its primary non-GAAP performance measure from "Adjusted Earnings (Loss)" to Adjusted EBITDA beginning March 31, 2026.
• Q3 2026 earnings per share (basic) was $0.08, compared to $(0.01) in Q3 2025.
• Nine months ended September 30, 2026, earnings per share (basic) was $(0.85), compared to $(0.23) in the prior year period.