Digi Power X — Q3 2026 Earnings Summary

Financial Performance:

• Total revenue reached $12.25 million, an 85% increase from Q2 2026 ($6.63 million) and a 50% increase from Q3 2025 ($8.1 million).
• AI revenue totaled $5.66 million, representing 46.2% of total revenue, up over 400% from Q2 2026 ($1.08 million) and from nil in Q3 2025.
• GPU rental revenue was $2.46 million, a 127% increase from Q2 2026 and from nil in Q3 2025.
• Energy sales revenue was $3.29 million, up 68% from Q2 2026 and 9% from Q3 2025.
• Tier III colocation services generated $3.20 million (26.1% of revenue).
• Legacy Bitcoin colocation revenue was $3.11 million (25.4% of revenue), down from 63% of revenue in Q3 2025.
• Net income was $1.0 million ($0.01 per share), compared to $0.1 million in Q3 2025, materially supported by digital currency and warrant valuation gains.
• EBITDA was $6.5 million, compared to $1.7 million in Q3 2025.
• Adjusted EBITDA was $0.6 million, compared to negative $1.0 million in Q3 2025.
• Cash, cash equivalents, and digital currencies totaled $119.6 million at quarter end, with working capital of $103.0 million.
• The company reported no outstanding borrowings at quarter end.
• Net fixed assets increased to $145.6 million from $73.24 million in Q2 2026 and $19.5 million in Q3 2025.
• Shareholders' equity was $279.9 million, up from $265.03 million in Q2 2026.

Guidance and Future Outlook:

• The company anticipates an annualized revenue run-rate of approximately $250-300 million by the end of Q3 2027, subject to adequate financing and market conditions.
• Approximately $143 million of the 2027 run-rate is supported by current operations and the Columbiana tenant agreement, including conditional Phase 2.
• Planned 2027 capital expenditures are approximately $350 million, intended to be funded principally through customer deposits, prepayments, and contract-backed debt to minimize shareholder dilution.
• Phase 1 tenant access and commissioning at Columbiana are expected on December 15, 2026, with billing expected to begin in January 2027.
• Phase 2 construction at Columbiana is underway, with tenant access targeted for March 2027, subject to various conditions.
• The company targets the transition of New York infrastructure assets to AI data center operations beginning in Q3 and Q4 2027.
• Development planning for a North Carolina campus contemplates approximately 75 MW in 2029 and an additional 75 MW in 2030.

Business Segments and Product Lines:

• The NeoCloudz Token Factory launched this quarter, enabling the company to sell AI inference directly to customers rather than renting compute at wholesale prices.
• The company holds approximately 48% of US Data Centers Inc. (USDC), which designs and deploys ARMS modular AI data center systems and is developing the URP-1 robotics platform.
• USDC is independently raising capital for expansion, resulting in dilution of Digi Power X's interest without capital contributions or share issuance from Digi Power X.
• A ten-year take-or-pay colocation agreement with Cerebras at the Columbiana campus is expected to provide annual fees averaging approximately $40 million for Phase 1 (15 MW), totaling $402 million.
• Phase 2 (25 MW) at Columbiana would add approximately $58.5 million in annual fees, bringing combined average annual fees to approximately $107 million and total contract value to approximately $1.07 billion if both phases commence.
• An option exists to expand the Cerebras relationship for an additional term, potentially increasing total contract value to approximately $2.5 billion.
• The company is assessing opportunities associated with a previously announced LOI involving a 1.3 GW power generation asset in West Virginia.

Market and Competitive Landscape:

• The company is transitioning from a legacy Bitcoin colocation model to a vertically integrated AI infrastructure provider.
• AI revenue now accounts for nearly half of the business, offsetting the decline in legacy Bitcoin activities.
• The company aims to expand its aggregate power capacity to over 400 MW through a geographically diversified portfolio including Alabama, New York, and North Carolina assets.

Risks and Challenges:

• The $200 million credit facility closing is subject to definitive documentation, lender diligence, and various conditions, with no assurance of completion on anticipated terms or at all.
• Phase 2 deployment at Columbiana is conditional on securing adequate financing acceptable to the tenant.
• Risks include the ability to maintain and obtain new customers, counterparty performance, and the realization of commercial agreements under discussion.
• Future capital needs and uncertainty regarding the ability to raise additional capital or obtain financing for the company and USDC are noted.
• Potential delays in construction, equipment delivery, and permitting or interconnection regulatory matters could impact timelines.
• Global demand for AI computing infrastructure and general economic and market conditions pose risks to performance.

Management Commentary and Tone:

• Chairman & CEO Michel Amar stated that the transformation into an AI infrastructure company is "beginning to take hold," highlighting an 85% revenue increase and AI now accounting for nearly half the business.
• Management emphasized a priority on execution, specifically bringing Columbiana into service and converting power assets into long-term contracted revenue.
• The company expressed a clear focus on value per share, aiming to grow recurring revenue and cash generation while minimizing shareholder dilution through customer contributions and contract-backed financing.
• President Alec Amar noted that the NeoCloudz Token Factory launch allows the company to earn more from every megawatt operated by selling tokens directly to customers.

Other Key Points:

• A proposed $200 million credit facility syndicated by Goldman Sachs is expected to close in Q4 2026 to support the development of the 40 MW AI data center in Columbiana, Alabama.
• The financing is structured at a project special purpose vehicle level with an unsecured Company guarantee through project completion.
• Proceeds from the financing are intended to support completion of the Columbiana project and related costs.
• The company's quarterly report on Form 10-Q for the quarter ended September 30, 2026, is available on SEDAR+ and EDGAR.
• A conference call to discuss results was scheduled for November 13, 2026, at 8:30 AM ET.