RUM Group Inc. — Q3 2026 Earnings Summary

Financial Performance:

• Reported record quarterly revenue of $96.6 million for the three months ended September 30, 2026, representing a 290% year-over-year increase and a 139% quarter-over-quarter increase, exceeding the top end of guidance by 3.8%.
• Quake AI contributed $68.2 million in revenue, accounting for over 70% of total revenue in its first full quarter.
• Achieved the first profitable quarter in company history on an Adjusted EBITDA basis, reporting $4.4 million in Adjusted EBITDA compared to a loss of $15.1 million in the prior year period.
• Cost of services increased 127% year-over-year to $57.2 million, driven by $30.0 million in Quake AI data center costs and $3.1 million in higher programming costs.
• General and administrative expenses rose 147% to $25.9 million, primarily due to $11.0 million in payroll and administrative costs from the Northern Data acquisition.
• Research and development expenses increased 73% to $7.7 million, and sales and marketing expenses increased 51% to $7.7 million.
• Total liquidity stood at $142.3 million as of September 30, 2026, comprising $134.4 million in cash and cash equivalents and 94.68 Bitcoin valued at $7.9 million.
• Deferred revenue increased to $23.5 million from $16.1 million at the end of 2025.

Guidance and Future Outlook:

• Provided Q4 2026 revenue guidance of $88 million to $94 million.
• Noted that due to market conditions, a portion of the previously disclosed 250MW of unmonetized capacity targeted for 2027 may be pushed out beyond 2027.
• Expects to see cost savings from the video business reset through 2027.
• Anticipates reaching 100% ownership of Northern Data in early 2027 following squeeze-out proceedings.

Business Segments and Product Lines:

• Quake AI operates a fleet of approximately 22,000 NVIDIA GPUs with utilization at approximately 85% for the quarter.
• Revenue for Quake AI was generated from GPU cloud computing services (reserved or on-demand) and data center hosting/colocation services.
• Rumble video revenues increased by $3.6 million, driven by a $5.6 million rise in advertising revenue, partially offset by a $2.0 million decrease in other services revenue.
• Commenced a cost reset in the video business tied to a refocused strategy.
• Announced a long-term distribution and content partnership with WWE to become the new home of the weekly premium program WWE Main Event.

Market and Competitive Landscape:

• Management stated that as capital becomes more selective, it will flow to experienced operators with disciplined balance sheets, positioning RUM Group favorably.
• The company operates in a highly regulated environment with evolving domestic and international laws regarding data privacy, cybersecurity, and AI.

Risks and Challenges:

• Significant risks include the ability to successfully integrate Northern Data operations, secure financing for data center construction (including Maysville, GA), and manage substantial indebtedness.
• Potential delays or cost increases in data center development due to political, regulatory, and community opposition.
• Risks related to cybersecurity, data breaches, and the operation of non-custodial crypto wallets.
• Potential liability for hosting third-party content and regulatory risks associated with paid endorsements and user-generated content.

Management Commentary and Tone:

• CEO Chris Pavlovski described Q3 as a "defining quarter," highlighting record revenue and the first positive Adjusted EBITDA.
• Management characterized Quake AI as the "engine of our business," emphasizing real assets running real AI workloads for real customers.
• The tone was confident, noting the 22,000-GPU estate is "nearly sold out" and expressing intent to build lasting shareholder value.

Other Key Points:

• Acquired an additional 8.26 million shares of Northern Data AG, increasing ownership from 85.2% to approximately 98%.
• Commenced squeeze-out proceedings under the German Stock Corporation Act to achieve 100% ownership.
• The Northern Data acquisition closed on June 17, 2026.
• The company qualified as a "well known seasoned issuer" under SEC rules and is converting its shelf registration statements to automatic WKSI status.
• Total assets grew to $2.0 billion as of September 30, 2026, from $336.8 million at December 31, 2025, largely due to the acquisition.
• Property and equipment, net, increased significantly to $899.7 million from $16.2 million at the end of 2025.
• Convertible notes payable of $358.8 million were recorded as of September 30, 2026.