Nov 6, 2026, 8:30 AM ETFinancial Services

DarkHorse Technologies Inc. — Third Quarter 2026 Earnings Summary

DRKDARKHORSE TECHNOLOGIES INC

Financial Performance

Revenue for the three months ended September 30, 2026, was $3.0 million, an increase from $2.5 million in the second quarter of 2026 and $2.6 million in the third quarter of 2025.
Net loss for the quarter was $5.8 million, a narrowing from $13.8 million in the second quarter of 2026 and an increase from $4.2 million in the third quarter of 2025.
Cash and cash equivalents totaled $8.8 million as of September 30, 2026, up from $2.8 million as of June 30, 2026, and $3.7 million as of December 31, 2025.
Total operating costs and expenses for the quarter were $8.8 million, compared to $6.7 million in the prior quarter and $6.7 million in the third quarter of 2025.
Loss from operations was $5.8 million for the quarter, compared to a loss of $4.0 million in the third quarter of 2025.
The Company reduced its Bitcoin holdings to zero, resulting in a $0 balance on the balance sheet compared to $3.3 million as of December 31, 2025.
Total assets were $25.6 million as of September 30, 2026, compared to $25.1 million as of December 31, 2025.
Shareholders' equity was $18.7 million as of September 30, 2026, down from $23.3 million as of December 31, 2025.

Management believes the race in AI infrastructure is to bring usable compute capacity online in 2027.
The Company aims to turn development sites into operating "superintelligence factories" that serve customers and generate revenue.
The strategy focuses on inference workloads, utilizing modular builds at existing industrial sites with established power infrastructure to shorten development timelines and support phased deployment.
The Company is building a repeatable development program integrating engineering, utility coordination, procurement, financing, and delivery.
As of the reporting date, the Company has a proposed new 50 MW data center under development in Kentucky and a development pipeline of approximately 100 MW of additional potential expansion opportunities.

Contracted power capacity doubled to approximately 100 MW as of September 30, 2026; approximately 50 MW is currently operating and 50 MW relates to a facility under development.
Completed Bitdeer mining machine installations across three sites in Tennessee and Kentucky under a 30 MW hosting arrangement with profit-share terms.
Advanced engineering for planned superintelligence factories in the Tennessee Valley Authority region, including an initial basis-of-design package for a Kentucky project and boundary surveys at two Kentucky development sites.
Sold non-core assets, including an Iowa site to Simple Mining for $1.5 million ($0.3 million cash, $1.2 million interest-free note) and a mining fleet with estimated proceeds of $2.9 million.
Completed a $5.0 million Private Investment in Public Equity (PIPE) financing, closing on September 11, 2026, with net proceeds of approximately $4.8 million.
Insiders, including the Chairman and CEO, purchased 333,332 units for approximately $1.0 million in the PIPE transaction.
Units were sold at $3.00 each, a 29% premium to the closing share price on September 4, 2026, with each unit containing one common share and one five-year warrant exercisable at $3.50 per share.
Completed the rebrand from Sphere 3D Corp. to DarkHorse Technologies Inc., with trading under the ticker symbol DRK beginning September 17, 2026.

Management identifies an opportunity in AI inference demand to develop smaller sites under 50 MW that can be deployed more rapidly than large frontier-model training projects requiring several hundred megawatts.
The Company leverages long-standing working relationships with local communities, utilities, and officials in Kentucky and Tennessee to secure power, land, and support.
The strategy involves combining modular builds with existing industrial sites and established power infrastructure to accelerate time-to-market.

Actual results may differ materially from forward-looking statements due to risks and uncertainties, including general market conditions and regulatory factors.
Project development is contingent on utility coordination, civil infrastructure, and permitting, which must be completed before construction can begin.
The Company retains ownership of mining machines sold until payment is received, creating potential collection risk during the 90-day sale period.
Comparability between periods is limited as Q3 2025 results reflect the Company on a standalone basis without contribution from the Cathedra Bitcoin transaction, which closed on June 1, 2026.

CEO Joel Block described the quarter as "very productive," highlighting the doubling of contracted power, completion of Bitdeer installations, and advancement of engineering for AI facilities.
Block emphasized that power, land, and local support are critical determinants for project success and noted the Company is "building trust site by site rather than assuming it will just be there."
Management stated the intention to use PIPE proceeds for working capital and general corporate purposes, including AI and HPC development in the TVA region.
The tone reflects a strategic shift toward power and data center infrastructure, evidenced by the sale of non-core assets and the reduction of Bitcoin holdings to zero.

The Company owns and/or operates approximately 50 MW of operating power capacity across four data center locations in Tennessee and Kentucky.
The acquisition of Cathedra Bitcoin operations closed on June 1, 2026, contributing to the revenue increase in Q3 2026.
The mining fleet sale is scheduled over a 90-day period beginning September 1, 2026, with $1.3 million of machines sold as of September 30, 2026.
The Company holds a $1.2 million interest-free promissory note from the sale of the Iowa site.
In October 2026, engineering partners prepared preliminary layouts for three projects in Kentucky and Tennessee, with continued coordination on civil infrastructure and permitting.