PowerCompute — Second Quarter 2026 Earnings Summary

Financial Performance

• Total revenue for Q2 2026 was $2.1 million, up 9.8% year-over-year and in line with Q1 2026.
• Digital mining revenues were $2,008,220 for the quarter, compared to $1,806,364 in Q2 2025.
• The Company mined 27.9 Bitcoin in Q2 2026 at an average value of approximately $72,000, compared to 18.4 Bitcoin in Q2 2025 at an average value of approximately $98,000.
• Mining margin was 29.0% in Q2 2026, down from 41.0% in Q2 2025, driven by a 27% decline in Bitcoin prices.
• Curtailment and energy sales were approximately $145,000 in Q2 2026, down from $223,000 in Q2 2025.
• Net loss for Q2 2026 was approximately $4.6 million, compared to net income of $0.1 million in Q2 2025.
• Core EBITDA loss was approximately $2.8 million in Q2 2026, compared to Core EBITDA income of $2.6 million in Q2 2025.
• The Company recorded a $1.3 million negative fair market value adjustment on mined digital assets and a $1.7 million negative adjustment on digital accounts receivable in Q2 2026.
• Cash balance was approximately $0.9 million as of June 30, 2026.
• Bitcoin holdings totaled 318.6 Bitcoin as of June 30, 2026, valued at approximately $18.6 million based on a price of $58,400; 174 Bitcoin were held by Galaxy Digital as collateral.
• Total assets were $37.1 million as of June 30, 2026, down from $51.3 million as of December 31, 2025.
• Total liabilities were $21.6 million as of June 30, 2026, compared to $22.4 million as of December 31, 2025.
• Net cash used in operating activities for the six months ended June 30, 2026, was $7.2 million.
• Net cash provided by investing activities for the six months ended June 30, 2026, was $6.3 million.
• Net cash provided by financing activities for the six months ended June 30, 2026, was $337,000.

Guidance and Future Outlook

• The Company is treating its Oklahoma proof-of-concept deployment as a learning exercise rather than a milestone while converting power infrastructure into contracted compute revenue.
• Management remains focused on strengthening its liquidity position following the refinancing of debt.
• The new 30-day revolving debt facility with Arch Lending is subject to renewal, and its rate and availability are subject to market conditions.
• The Company intends to proceed deliberately in its expansion into HPC and AI infrastructure.

Business Segments and Product Lines

• The Company announced a strategic expansion into high-performance computing (HPC) and artificial intelligence (AI) infrastructure, leveraging its 26 MW of wholly-owned power infrastructure.
• The Company rebranded as PowerCompute, Inc. and began trading under the new ticker PWCM on July 22, 2026.
• An agreement was entered into with Vast.ai to utilize its GPU compute marketplace to monetize and launch a proof-of-concept study for the Company's professional-grade GPUs at its Oklahoma facility.
• The Company operates a technology-enabled specialty finance business providing funding to nonprofit community associations primarily in Florida.
• The Company operates 26 megawatts of wholly-owned power infrastructure across facilities in Oklahoma and Mississippi.

Market and Competitive Landscape

• The Company's power-first approach is cited as a central advantage, noting that greenfield power takes years to replicate.
• The increase in Bitcoin mined was attributable to an increase in the number of miners actively mining, offsetting a decrease in Bitcoin price.
• The Company faces competition in the HPC and AI compute market, as noted in forward-looking risk statements.

Risks and Challenges

• Volatility of Bitcoin and other cryptocurrency prices remains a significant risk.
• Risks related to the use of Bitcoin as collateral for the Arch Facility, including the requirement to post additional collateral if Bitcoin value declines.
• Risks regarding the ability to satisfy terms of the Arch Facility or extend loans on satisfactory terms.
• Risks associated with successfully entering and operating in the HPC and AI infrastructure business.
• Availability and cost of GPU and related infrastructure equipment.
• Risks of operating in the cryptocurrency mining business, including the ability to grow the business and purchase power at reasonable prices.
• The ability to identify and acquire additional mining sites.

Management Commentary and Tone

• Bruce Rodgers, Chairman, President and CEO, stated the decision to expand into HPC and AI infrastructure was made during the second quarter, emphasizing the company's ownership of 26 megawatts of energized, low-cost capacity.
• Rodgers noted the Oklahoma deployment has begun generating initial revenue from Vast engagements but is being treated as a learning exercise.
• Richard Russell, CFO, reported revenue was flat sequentially amid a soft Bitcoin price environment but grew 9.8% year-over-year on higher production.
• Russell highlighted that the Core EBITDA loss narrowing was driven by Bitcoin price movement rather than a change in operating performance.
• Management confirmed the refinancing of $18 million of debt with Arch Lending lowered borrowing costs from 12% to approximately 2% APR.

Other Key Points

• Subsequent to quarter end, the Company refinanced and consolidated three existing $18 million debt facilities into a new debt facility with Arch Lending.
• The new Arch Facility utilizes 307 Bitcoin from the Company's treasury as collateral and carries an interest rate of approximately 2% APR, down from 12% on prior loans.
• The new facility is a revolving 30-day term loan.
• The Company's June 30, 2026, Bitcoin holdings of 318.6 Bitcoin would be valued at approximately $20.7 million based on a price of $65,000 as of August 9, 2026.
• The Company recorded a $1.7 million negative fair market value adjustment on Digital (Bitcoin) accounts receivable in Q2 2026.
• The Company incurred a $1.3 million negative fair market value adjustment on mined digital assets in Q2 2026.
• The Company's operating costs and expenses for Q2 2026 were $5.97 million, compared to $1.5 million in Q2 2025.
• The Company's operating loss for Q2 2026 was $3.9 million, compared to an operating income of $0.4 million in Q2 2025.