HIVE Digital Technologies Ltd. — Q2 FY2027 Earnings Summary

Financial Performance:

• Total revenue was $84.9 million, up 7.3% sequentially and down 2.7% year over year.
• Digital currency revenue was $76.0 million, up 5.5% sequentially and down 7.4% year over year.
• HPC (BUZZ) revenue was $8.8 million, up 25.3% sequentially and 70.7% year over year.
• Gross operating margin was $30.2 million (35.6% of revenue), compared to $24.2 million (30.6%) in Q1 FY2027.
• Adjusted EBITDA was $24.8 million (29.2% of revenue), representing an 85% sequential increase.
• GAAP net loss was $78.7 million, including $54.9 million in depreciation, $31.2 million in non-cash equipment impairment, $8.6 million in share-based compensation, and a $7.3 million loss on the fair value of derivatives.
• Liquidity stood at $139.0 million in cash and cash equivalents and $22.6 million in digital currencies as of September 30, 2026.
• Selling, general and administrative expenses were $10.7 million, up from $9.0 million in Q1 FY2027 and $7.8 million in Q2 FY2026.

Guidance and Future Outlook:

• HIVE targets approximately $200 million of GPU Cloud ARR by the fourth quarter of calendar 2026, subject to financing, market conditions, deployment schedules, and customer acceptance.
• The Company aims for a longer-term target of approximately $700 million in total HPC ARR by year-end 2028, which is a forward-looking target dependent on financing, construction, customer commitments, commissioning, and market conditions.
• Energized power capacity is expected to reach approximately 540 MW following the planned energization of an additional 100 MW power purchase agreement at Yguazú in Q4 2026.
• Management expects sentiment regarding data centers to stabilize over the next six months following recent political shifts.

Business Segments and Product Lines:

• The Company operates a dual-engine model combining Tier I data centers for Bitcoin mining and Tier III data centers for AI computing.
• HIVE operates approximately 300 MW of Tier I infrastructure in Paraguay, representing approximately 2% of the global Bitcoin network's hashrate.
• Deployment of an NVIDIA B200 GPU cluster at the Manitoba, Canada site drove HPC revenue growth.
• Contracted GPU Cloud ARR reached approximately $185 million, including $40 million in currently live ARR.
• Contracted agreements include a three-year, ~$225 million sovereign AI agreement with Bell AI Fabric supporting Cohere (2,304 NVIDIA GB200 NVL72 GPUs) and a five-year, ~$350 million GPU cloud agreement with an investment-grade enterprise customer (2,016 NVIDIA GB300 NVL72 GPUs).
• A letter of intent was signed for long-term colocation at the 32 MW Big Boden facility in Sweden, representing approximately $45 million of potential annual revenue.
• The proposed Tier III development pipeline includes opportunities in New Brunswick, Toronto, and Sweden, alongside a planned 320 MW Greater Toronto Area Gigafactory.

Market and Competitive Landscape:

• Pricing for BUZZ's bare-metal GPU platforms remained healthy, reflecting continued demand for AI computing capacity.
• Current GPU market prices (measured in dollars per GPU hour) exceed contracted prices from six months ago.
• Management notes that new data center development in the U.S. may face resistance following recent political shifts, creating an opportunity for Canada to accelerate investment and narrow the AI infrastructure gap.
• The Province of Ontario released a data center playbook in August 2026, with the Premier's office committing to approving new data centers "sooner rather than later."
• HIVE has 400 MW of utility load across Canada earmarked for Tier III data centers for HPC applications, with over 320 MW in the Province of Ontario.

Risks and Challenges:

• A $31.2 million non-cash impairment of mining equipment was recorded following a U.S. GAAP recoverability assessment reflecting challenging Bitcoin mining economics and lower market values for ASIC equipment.
• The Company faces risks related to the volatility of the digital currency market, including the impact of declining Bitcoin prices on operations and working capital.
• Future growth depends on financing, construction, customer commitments, commissioning, and market conditions.
• The Company is exposed to regulatory changes in the energy regimes, cryptocurrency, and HPC/AI sectors across Canada, the U.S., and other jurisdictions.
• There is a risk that the expansion of Paraguay facilities may not be completed on an economic and timely basis.

Management Commentary and Tone:

• Frank Holmes, Executive Chairman, stated that revenue was broadly stable year over year despite a 27% decline in Bitcoin prices, highlighting the resilience of the dual-engine model.
• Aydin Kilic, President and CEO, emphasized that the primary objective is to protect the balance sheet and maintain cash flow and profitability while delivering on contracted capacity.
• Darcy Daubaras, CFO, noted that financial priorities remain disciplined capital allocation, liquidity management, and translating new capacity into sustainable operating performance.
• Craig Tavares, President & COO of BUZZ HPC, highlighted that HIVE's hydroelectric-powered sites and operating expertise position the company to serve customers seeking reliable computing capacity and data control.

Other Key Points:

• The Company issued 13,698,085 common shares via the November 2025 ATM Equity Program for gross proceeds of approximately $43.2 million, with an average price per share of $3.15.
• A $129 million financing was secured to fund the GPU purchase for the three-year agreement with Cohere and Bell, satisfying capital commitments for the 2,304 GB200 GPU cluster as of September 30, 2026.
• The Company reported a $177 million non-cash provision for regulatory liabilities in the six-month period ended September 30, 2026, which resulted in a $84.5 million provision in the balance sheet.
• The Company holds a convertible loan liability component of $235.3 million as of September 30, 2026.
• Total assets were $857.7 million as of September 30, 2026, compared to $639.1 million as of March 31, 2026.
• Total liabilities increased to $493.2 million as of September 30, 2026, from $109.8 million as of March 31, 2026.