Datacentrex — Second Quarter 2026 Earnings Summary

Financial Performance

• Revenue was approximately $1.9 million for the quarter, flat compared to $1.9 million in the second quarter of 2025.
• Gross profit was approximately $205,000 (10.7% margin), down from $931,000 (48.2% margin) in the prior-year period, primarily due to increased power rates.
• Total operating expenses were approximately $5.0 million, up from $2.4 million in the prior-year period, driven by $3.3 million in depreciation and amortization, $851,000 in stock-based compensation, and $863,000 in general and administrative expenses.
• GAAP net loss was approximately $5.5 million ($0.14 per share), compared to a net loss of $1.5 million in the second quarter of 2025.
• Adjusted EBITDA loss was approximately $1.3 million, an improvement of approximately 22% sequentially from $1.7 million in the first quarter of 2026.
• Introduced Net Cash Burn as a new non-GAAP measure at approximately $61,000, an 88% improvement from $496,000 in the first quarter of 2026 and a shift from net cash generation of $561,000 in the second quarter of 2025.
• Net Cash Burn excludes approximately $1.3 million in net realized and unrealized losses on digital assets and includes approximately $597,000 in net interest income.
• Cash and cash equivalents totaled $51.9 million as of June 30, 2026, up from $38.9 million as of December 31, 2025.
• Digital assets totaled approximately $6.0 million as of June 30, 2026.
• Combined cash and digital assets totaled approximately $57.9 million as of June 30, 2026.
• The company reported no debt.
• Net cash used in operating activities for the six months ended June 30, 2026, was $4,991,617.

Business Segments and Product Lines

• Operated 3,085 Scrypt ASIC miners across four geographically diversified colocation facilities in the United States.
• Maintained approximately 43.2 TH/s of aggregate deployed hashrate at full uptime and 12.5 MW of deployed power capacity.
• Maintained a stable operating fleet with no material additions or removals and no changes to colocation arrangements or contracted power capacity during the quarter.
• Continued to support Litecoin, Dogecoin, and other Scrypt-based blockchain networks via merged-mining architecture to validate multiple networks without incremental energy consumption.
• Monetized hashrate primarily through marketplace channels with settlement typically denominated in Bitcoin.

Risks and Challenges

• Facing higher power costs and continued volatility in digital asset markets, which negatively impacted gross margins and reported earnings.
• Incurred approximately $1.3 million in net realized and unrealized losses on digital assets during the quarter.
• Operating expenses increased significantly due to higher depreciation, amortization, and stock-based compensation.

Management Commentary and Tone

• CEO Parker Scott described the second quarter as a "challenging operating environment" but noted that mining operations remained gross-profit positive.
• Management expressed a "patient and disciplined" approach to capital deployment, prioritizing opportunities with attractive risk-adjusted returns.
• The company intends to evaluate opportunities to improve fleet economics, expand compute capacity, and deploy capital across the digital infrastructure landscape.
• Management highlighted the priority of creating durable value for stockholders through selective investments, partnerships, and acquisitions.

Other Key Points

• Datacentrex is transitioning from a digital asset mining business to potential high-growth sectors including digital-asset infrastructure, data-center operations, and quantum-computing-adjacent technologies.
• The company issued a new non-GAAP financial measure, Net Cash Burn, to assess the periodic cost of sustaining the business after interest earned on cash balances.
• Total assets increased to $74.9 million as of June 30, 2026, from $66.8 million as of December 31, 2025.
• Stockholders' equity increased to $74.5 million as of June 30, 2026, from $66.2 million as of December 31, 2025.
• The company holds $3.6 million in deposits for equipment as of June 30, 2026.