WhiteFiber, Inc. Ordinary Shares Q4 FY2025 earnings call

2025 was pivotal with IPO and standalone operation. In fourth quarter, Montreal 3 online for Cerebrus, exercising purchase option for ~24 million CAD. Signed 40 megawatt IT loads agreement with Nscale for NC1, RFS date shifted to May 31st. Cloud segment focused on enterprise deployments, monetized GPUs, repositioned cloud business, redeployed capacity. Key near-term priorities: bring NC1 online, establish long-term financing, crystallize next tranche at NC1, advance next site.

Fourth quarter revenue was $23.6 million. Colocation revenue was $3.9 million up from 1.7 million in the third quarter due to MTL3 coming online and start of revenue from Cerebus collocation contract. Cost of revenue increased with new capacity. Gross margin, excluding depreciation, improved to approximately 61%. Depreciation was $8.1 million. General and administrative expense was $11.4 million. Operating loss per quarter was $5.4 million. Net loss for the quarter was $1.5 million. Adjusted EBITDA for the quarter was $5.8 million, margin 25%. Full year adjusted EBITDA was $17.3 million. Ended the year with $114.4 million of cash and cash equivalents and no funded debt, had $3.9 million restricted cash and unjoined credit facility. Completed $230 million convertible note offering.

Expect cloud revenue to decline in first half of 2026, ~$16 to $17 million in first quarter, ramping in mid Q2 and accelerating. Expect margins to remain relatively consistent. Anticipate putting debt financing for NC1 in place during second quarter of 2026.

First question from Darren Aftahi: characterized dominoes for additional power on NC1 and clients for smaller vs larger sites. Next from John Todaro: change orders driven by client's off-taker networking optionality, not NVIDIA architecture. Next from Brian Dobson: client canceling services, replacement contracts. Next from George Sutton: Nscale likely taking additional capacity at NC1, cloud revenue transition. Next from Paul Golding: substation upgrade funding, retrofit site availability. Next from Michael Donovan: Atlanta cloud R&D project, behind the meter power. Next from Kevin Beattie: no bearing of cloud customer on Montreal One. Next from Nick Giles: being more deliberate with customer announcements, opportunities working in parallel.