Key Highlights

  • Loss was USD 2.44 per share against an estimated USD 0.37 loss, and Revenue of USD 24.02 million trailed estimates.
  • Net loss was USD 101.4 million, including a USD 80.8 million reduced conversion expense tied to an August note repurchase.
  • Adjusted EBITDA was approximately breakeven against positive USD 2.3 million a year earlier, and cash stood at USD 138.5 million.
  • The company signed a USD 300 million secured Credit Facility for NC-1, with contract value near USD 865 million.

WhiteFiber (NASDAQ:WYFI), an operator of data centers and cloud infrastructure for artificial intelligence workloads, reported a third quarter 2026 loss of USD 2.44 per share against an estimated USD 0.37 loss. Revenue of USD 24.02 million came in below the USD 29.90 million estimate but was up 19% from a year earlier, driven by colocation revenue that more than tripled to USD 5.6 million.

Cloud revenue was USD 18.1 million, including USD 3.4 million from a previously disclosed customer termination. Net loss was USD 101.4 million, including a USD 80.8 million reduced conversion expense associated with the August repurchase of convertible notes, which is excluded from adjusted EBITDA. Adjusted EBITDA was approximately breakeven, compared with positive USD 2.3 million in the prior-year quarter.

Cloud services revenue rose USD 0.1 million, or 0.4%, to USD 18.1 million. For the nine months, it rose USD 9.2 million, or 18.6%, to USD 58.7 million, and colocation revenue was USD 15.1 million against USD 5.1 million. The filing states the largest customer accounted for about 50% of cloud services revenue in the nine months, and that discontinued orders reduced nine-month revenue by about USD 5.1 million.

Colocation cost of revenue was USD 2.4 million in the quarter, up from USD 0.7 million, reflecting higher electricity, Lease and wage costs. General and administrative expenses were USD 3.2 million, or 15%, lower than a year earlier.

Contracts, Financing and Capacity

At the NC-1 facility, the contract value is approximately USD 865 million over 10 years, and the company signed a USD 300 million secured credit facility for the project. It said development costs are to finish just below USD 9 million per gross megawatt, within an original budget range of USD 7 million to USD 9 million. It also completed a USD 60 million Acquisition of two North Carolina sites with at least 60 megawatts of initial gross Utility capacity, already zoned for Data Center use.

Since the last Earnings Call it signed more tha USD 700 million in new cloud services contract value, and about USD 750 million of new contract value across five customers in total. The filing cites new customer orders with total contracted revenue of about USD 1,447 million over periods of six months to five years. Management guided that the signed cloud portfolio, once fully deployed, generates about USD 365 million in annualized revenue.

The company's target is about 65 megawatts of gross operational data center capacity by the end of 2026, with a pipeline of about 1,500 megawatts under management review.

Guidance and Balance Sheet

Management guided fourth quarter cloud revenue to be roughly in line with the third quarter's USD 18.1 million, followed by significant sequential growth in the first and second quarters of 2027 as contracted deployments enter service. Contracted prepayments cover about 40% of estimated Capital Expenditure for signed dedicated compute deployments not yet in service.

The company ended September with USD 138.5 million of cash and cash equivalents plus USD 9 million of restricted cash. The filing's legal proceedings item states it is not presently a party to litigation it believes would have a material adverse effect.

What to Follow

Deployment timing for contracted capacity, the share of revenue from the largest customer and spending on construction are the measurable items for coming quarters.