QumulusAI — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue reached $14.8 million for the quarter ended September 30, 2026, a 376% increase from $3.1 million in the same period in 2025.
• Compute power revenue grew to $14.1 million (96% of total revenue) from $1.4 million (47% of total revenue) in the prior year period.
• Operating loss widened to $41.6 million from $2.8 million in the prior year period, driven by a $13.4 million increase in depreciation and amortization and higher general and administrative costs.
• Net loss was $14.4 million, compared to a net loss of $9.5 million in the prior year period.
• The current period included $32.3 million in non-cash gains from changes in the fair value of the convertible note, related option, and warrant liability; the prior-year period included a $4.8 million non-cash loss from the warrant liability.
• Adjusted EBITDA turned positive at $3.7 million, compared to a loss of $0.6 million in the prior year period.
• Total assets increased to $394.1 million from $91.7 million as of December 31, 2025.
• Total liabilities increased to $368.8 million from $26.4 million as of December 31, 2025.
• Cash and restricted cash totaled $31.1 million at the end of the period, up from $11.7 million at the beginning of the period.
• Deferred revenue (current and non-current) totaled $79.0 million ($33.2 million current, $45.8 million non-current), compared to zero in the prior period.

Guidance and Future Outlook:

• QumulusAI stated it would provide forward-looking guidance in connection with the quarterly earnings conference call and webcast.
• Management noted that the third quarter was early in the revenue ramp, with compute coming online throughout the quarter and into the fourth quarter, meaning much of the capacity had not yet billed for a full period.
• Contracted capacity in Denver (1.2 MW) is ready for service in Q1 2027.
• Contracted capacity in Columbia, South Carolina (0.5 MW) is ready for service in December 2026.

Business Segments and Product Lines:

• Active capacity reached 8 MW.
• Cumulative signed customer contract value surpassed $500 million, reaching $528.7 million.
• Signed $240.9 million in new three-year take-or-pay agreements covering more than 2,000 NVIDIA Blackwell B300 GPUs across two dedicated clusters.
• The $71.9 million, three-year Blackwell agreement was fully placed into production, with every GPU under the agreement billing within three months of signing.
• The company deployed into pockets of existing power and brings capacity online in months rather than years.

Market and Competitive Landscape:

• The company operates as a distributed AI cloud platform delivering accelerated access to high-performance GPU compute.
• The business model focuses on an inference-first, demand-led deployment across a network of data center sites to bring compute closer to customer demand.
• The company aims to provide a faster, more adaptable path beyond the capacity constraints of traditional centralized and hyperscale cloud models.

Risks and Challenges:

• Risks include dependence on a limited number of large customers.
• Potential challenges involve the availability and cost of power, network connectivity, and specialized hardware such as graphics processing units.
• The company faces substantial capital requirements and access to financing risks.
• Competition and rapid technological change in the high-performance computing and AI markets pose risks.
• The company has a limited operating history and a history of net losses.

Management Commentary and Tone:

• CEO Michael Maniscalco stated, "Revenue doubled again this quarter, and remaining performance obligations grew to $515.0 million from $173.1 million at the end of the second quarter."
• Management described the business model as "doing its job," highlighting the ability to sell capacity before energizing it and deploying into existing power pockets.
• The tone indicated confidence in the ramp-up, noting that the third quarter was early in the process with significant capacity coming online in the fourth quarter.

Other Key Points:

• The company issued shares of common stock valued at $26.4 million for professional services in connection with its direct listing.
• The company recognized a $32.3 million non-cash gain from changes in the fair value of financial instruments, including convertible notes and warrants.
• The company reported a net loss per share of $0.43 for the quarter.
• The company has $13.0 million in expected payments for finance lease obligations for the remainder of 2026 and $53.3 million for 2027.
• The company holds $30.6 million in accounts receivable and $138.6 million in property and equipment, net.
• The company has $32.0 million in convertible notes payable and $20.3 million in USD.AI protocol loans outstanding.