Key Highlights

  • Third-quarter 2026 Revenue was USD 14.76 million, up 376% from USD 3.10 million a year earlier, and compute made up 96% of the total, compared with 47% in the prior-year quarter.
  • Adjusted EBITDA, a non-GAAP measure, was positive at USD 3.7 million, a 25% margin, against a loss of USD 0.8 million in the second quarter and USD 0.6 million a year ago.
  • The operating loss was USD 41.6 million including a USD 26.4 million non-cash charge for shares issued as a professional services fee, and the net loss was USD 0.43 per share against USD 5.34.
  • Remaining performance obligations on direct compute contracts reached USD 515 million at quarter end, up from USD 173.1 million at June 30, with USD 29.1 million scheduled for the fourth quarter.

Revenue Triples as Newly Energized GPU Capacity Starts Billing

QumulusAI (NASDAQ:QMLS) filed its Quarterly Report on November 10, 2026 and held its call on November 11, 2026. The company runs GPU-powered AI cloud capacity in colocation data centers, and is converting infrastructure once used for crypto mining. Revenue of USD 14.76 million more than doubled from USD 6.7 million in the second quarter, according to management. The CEO said active capacity is 8 megawatts across five sites, with another 5.45 megawatts contracted but not yet billing. He said the company signed USD 352 million of new direct contracts in the quarter, bringing signings for 2026 to USD 529 million. The CFO said much of the new capacity billed for only part of the period.

Non-Cash Items Distort the Loss and Depreciation Climbs

Operating loss was USD 41.6 million, including the USD 26.4 million share-based professional fee tied to its July 2026 direct listing, which is added back in adjusted EBITDA. Depreciation and amortization was USD 14.9 million, up USD 8 million from the second quarter. Net loss attributable to common shareholders was USD 14.5 million, or USD 0.43 per share, which includes USD 32.3 million of non-cash gains from remeasuring convertible notes, an option and warrants. Those gains move inversely with the share price. Net interest expense was USD 5.4 million, up USD 3.3 million from the second quarter, and management expects depreciation and interest to rise again in the fourth quarter.

Deposits Fund the Build, Yet the Filing Cites Substantial Doubt

The CFO said customer prepayments, typically 15% to 20% of contract value, helped produce positive Operating Cash Flow of USD 32 million. Capital spending was about USD 100 million, financing provided USD 44.6 million, and quarter-end cash and restricted cash was USD 31.1 million, including USD 9.2 million restricted. Debt and finance Lease obligations were USD 248 million, and Equity was USD 25.3 million. The 10-Q nonetheless states that recurring operating losses and an accumulated Deficit of USD 124.2 million raise substantial doubt about continuing as a Going Concern for one year. Management reaffirmed July guidance of 18 megawatts of year-end contracted capacity and USD 300 million of year-end forward annual recurring revenue.

Where Things Stand

The filing flags doubt because the company has recurring operating losses and an accumulated deficit of USD 124.2 million, even though revenue and adjusted EBITDA are improving. QumulusAI (NASDAQ:QMLS) is funding GPU purchases with deposits, loans and leases, so cash is thin and obligations are large. The scheduled USD 29.1 million of fourth-quarter contract revenue and the reaffirmed 18 megawatt target are the next checks. Management also said it will revisit how it provides guidance when it reports the fourth quarter.