Digi Power X Inc. — Second Quarter 2026 Earnings Summary

Financial Performance

• Reported revenue of approximately $6.6 million for Q2 2026, comprised of $3.6 million from colocation services and legacy mining, $1.9 million from energy sales, and $1.1 million from GPU rental.
• Reported a net loss of approximately $14.4 million for Q2 2026.
• Generated positive Adjusted EBITDA of approximately $3.3 million, compared to approximately $0.1 million in the prior-year period.
• Reported cash and cash equivalents of $142.4 million as of June 30, 2026, increasing to approximately $150 million as of August 14, 2026.
• Total assets stood at $279.6 million and shareholders' equity at $265.0 million as of June 30, 2026.
• Combined property, plant, and equipment, net, and long-term assets totaled $127.5 million as of June 30, 2026.
• No debt was reported on the balance sheet as of the reporting date.

Guidance and Future Outlook

• Targets an annualized revenue run-rate of approximately $250 million to $300 million by Q3 2027.
• Expects to reach approximately $140 million of annualized contracted revenue run-rate during 2027 based on existing agreements.
• Anticipates Q3 2026 revenue to increase significantly compared to Q2 2026.
• Plans to expand GPU bare-metal platform by approximately 10 MW during 2027.
• Targets 40 MW of additional colocation capacity and 10 MW of additional GPU bare-metal compute capacity in 2027 based on available power.
• Expects the transition to a higher revenue profile to become increasingly visible during the second half of 2026.

Business Segments and Product Lines

• Generated first AI compute revenue of approximately $1.1 million from GPU bare-metal rental during five weeks of operations.
• Invested approximately $30 million in GPU infrastructure, representing 0.6 MW of deployed AI compute capacity.
• B300 GPU bare-metal infrastructure has operated at 100% uptime since May 2026.
• Alabama Tier III AI Data Center: Phase 1 (15 MW IT load) expected in December 2026; Phase 2 (additional 25 MW) expected in March 2027, totaling 40 MW.
• New York assets are being prepared for conversion to AI data center operations, targeting transition in Q3 and Q4 2027.
• North Carolina site development plans contemplate approximately 75 MW in 2029 and an additional 75 MW in 2030.
• Opening a Silicon Valley office in Q3 2026 to house the engineering team for the GPU-as-a-Service business.
• US Data Centers Inc. (subsidiary) raised outside capital at a $125 million pre-money valuation; Digi Power X holds an approximate 48% ownership interest.

Market and Competitive Landscape

• Secured $1.1 billion of contracted AI data center future revenue with an option to expand the relationship to a total potential contract value of approximately $2.5 billion.
• Assessing opportunities for a 1.3 GW power generation asset in West Virginia under a previously announced LOI.
• Company describes its business model as vertically integrated, operating a portfolio of power assets and data center capacity.

Risks and Challenges

• Execution risks related to delivering the Alabama data center on schedule and scaling the GPU compute platform.
• Financing risks: Phase 2 deployment is conditioned on securing adequate financing; the Company is in advanced discussions with lenders and has engaged Goldman Sachs to assist in syndicating financing for the Alabama data center.
• Risks include ability to maintain/obtain new customers, counterparty performance, and potential delays in construction or equipment delivery.
• Uncertainty regarding the ability to raise additional capital or obtain financing for the Company and USDC.
• Regulatory, permitting, and interconnection risks, as well as general economic and market conditions.

Management Commentary and Tone

• CEO Michel Amar described Q2 as an "important inflection point" in the company's transformation, citing the first AI compute revenue and strong financial foundation with no debt.
• President Alec Amar emphasized that the business is "underwritten on what you have delivered," highlighting the importance of delivering the Alabama project on schedule to establish an operating track record.
• CTO Jagan Jeyapaul noted the platform demonstrated modular AI data centers at scale and the Silicon Valley Lab will advance GPU as a Service.
• Management stated the priority remains execution to drive growth in 2027 and beyond.

Other Key Points

• Approximately $110 million of year-to-date capital investment and equipment deposits were made.
• The Company is in advanced discussions with lenders to finalize debt financing for the Alabama data center.
• The Company's quarterly report on Form 10-Q for the quarter ended June 30, 2026, has been filed on SEDAR+ and EDGAR.
• A conference call to discuss results was scheduled for August 14, 2026, at 8:30 AM ET.