QumulusAI — Second Quarter 2026 Earnings Summary

Financial Performance

• Total revenue reached $6.7 million in Q2 2026, a 118% increase from $3.1 million in Q2 2025.
• Compute power revenue grew to $5.6 million (84% of total revenue) from $1.3 million (43% of total revenue) in the prior year period.
• Gross profit was $4.5 million, up 163% from $1.7 million, with gross margin expanding to 67% from 55%.
• Operating loss was $7.7 million compared to $2.2 million in Q2 2025, driven by a $5.8 million increase in depreciation and amortization and higher general and administrative costs.
• Net loss was $22.8 million compared to net income of $12.1 million in Q2 2025; the current loss includes a $19.2 million non-cash loss on convertible note issuance, while the prior period included a $14.5 million non-cash gain on investment remeasurement.
• Adjusted EBITDA loss was $0.8 million, compared to a loss of $0.3 million in Q2 2025.
• Deferred revenue increased by $30.5 million in the first half of 2026, contributing to $22.3 million of operating cash flow.
• Cash and restricted cash totaled $39.9 million at June 30, 2026, up from $11.7 million at December 31, 2025.

Guidance and Future Outlook

• Management stated that demand is not a constraint and the primary goal is deploying capacity faster than competitors.
• Recent Blackwell contracts are generating between $18 million and $20 million of annualized revenue per megawatt, compared to just over $16 million across the installed base.
• The company plans to expand energized capacity, including under a right of first offer on up to 7 MW of expansion capacity at its metropolitan Atlanta site.
• Finance lease payments are expected to be approximately $9.3 million for the remainder of 2026 and $20.0 million during 2027.

Business Segments and Product Lines

• The company transitioned away from dependence on a single marketplace, with direct customer relationships now comprising more than 96% of the recurring revenue base, up from less than 10% a year earlier.
• AI Compute revenue share increased to 84% of total revenue in Q2 2026, up from 61% in Q1 2026 and 43% in Q2 2025.
• The deployed GPU fleet grew 224% from 952 units to 3,088 units during the quarter.
• The company signed 21 new direct customer AI compute contracts with an aggregate expected take-or-pay value of $169.7 million.
• Cumulative signed customer contract value reached $282.5 million.
• The company purchased 1,632 NVIDIA Blackwell B300 GPUs to meet accelerating demand.
• A GPU-as-a-Service agreement was signed with DRW, a diversified trading firm.

Market and Competitive Landscape

• QumulusAI became an NVIDIA Cloud Partner on July 17, 2026.
• The company signed more than $120 million in new customer agreements, including a three-year agreement valued at over $71 million.
• A colocation agreement was entered in metropolitan Atlanta for up to 3.75 MW with potential for expansion.
• The company ended the quarter with 8 MW of HPC capacity under executed lease and colocation agreements.

Risks and Challenges

• Forward-looking statements highlight risks including dependence on a limited number of large customers.
• Risks include the availability and cost of power, network connectivity, and specialized hardware such as GPUs.
• The company faces substantial capital requirements and access to financing risks.
• Competition and rapid technological change in the high-performance computing and AI markets are cited as risks.
• The company has a limited operating history and a history of net losses.

Management Commentary and Tone

• CEO Michael Maniscalco stated, "This was the quarter our model started proving itself," noting that AI compute previously sold came online to generate revenue.
• CFO Scott Krosnowski highlighted that revenue more than doubled year over year and gross margin expanded as GPU activations grew revenue faster than colocation costs.
• Management emphasized that customers are committing and paying ahead of delivery.

Other Key Points

• QumulusAI began trading on the Nasdaq Global Market under the ticker symbol "QMLS" on July 16, 2026.
• The company incurred a $19.2 million non-cash loss on the issuance of convertible notes in the current period.
• The prior year period included a $14.5 million non-cash gain on the remeasurement of the Company's investment in The Cloud Minders.
• Net cash provided by operating activities was $22.3 million for the six months ended June 30, 2026.
• Net cash used in investing activities was $36.3 million for the six months ended June 30, 2026, primarily due to purchases of property and equipment and deposits on power equipment.
• Net cash provided by financing activities was $42.2 million for the six months ended June 30, 2026, driven by proceeds from convertible notes and lines of credit.