RUM

Transformational Acquisition and Restructuring

• Closed the acquisition of Northern Data on June 17, 2026, securing ~85.2% of its outstanding shares
• Reorganized the parent company as Rum Group Inc. with two synergistic business units: the legacy Rumble video platform, and the new Quake AI cloud and AI infrastructure business
• This transformation completes Rum Group's entry into the cloud and agentic AI era

Quake AI Operational Highlights

• Existing GPU fleet currently runs at >85% utilization, up sharply from prior levels, driven by improved focus on customer support and IaaS execution
• Signed a multi-year agreement with Together AI to deploy NVIDIA HGX B300 GPU capacity, establishing Rum Group as a credible independent large-scale AI infrastructure provider outside the traditional hyperscaler ecosystem
• The deal was supported by NVIDIA GPU supply allocation, validating industry trust in the company's execution capabilities
• The company holds 250 megawatts of unmonetized power capacity targeted for deployment in 2027 across four sites: an 180 megawatt site near Atlanta, Georgia (substation complete, transformers on site), a smaller site in Pittsburgh, a 50 megawatt site in Sweden, and a 20 megawatt site in Norway
• Monetizing this full unmonetized capacity is expected to represent a >$3 billion annual run rate revenue opportunity for the company

Rumble Video Platform Strategic Opportunity

• Continues to grow revenue through expanding brand advertising, with MAU and ARPU posting sequential improvement in Q2
• A new high-potential monetization opportunity has emerged: Rumble's large library of spatial-temporal video data is expected to become extremely valuable for robotic/agentic AI model training over the next 1-2 years, and Quake AI customers have already expressed interest in licensing this data
• Rum Group holds a unique market position: it can offer scaled AI compute like competing cloud providers, but also owns a large trove of video data and a creator community to power the emerging agentic/robotic AI era

Financial Performance

• Consolidated Q2 2026 revenue hit an all-time record of $40.4 million, up 61% YoY
• Adjusted EBITDA loss improved to $16.6 million from a $20.5 million loss YoY
• Net loss for the quarter was $80.3 million ($79.1 million attributable to Rum Group Inc.), up from a $30.2 million net loss YoY, primarily driven by $28.3 million in acquisition-related transaction costs and higher depreciation/amortization from the acquired assets
• Ended Q2 with $220.5 million in total liquidity, including $203.3 million in cash/cash equivalents and ~$17.2 million in held Bitcoin
• MAU and ARPU will be discontinued as headline company metrics starting in Q3, replaced by separate segment-level revenue and profitability reporting for Rumble Video and Quake AI

• This quarter marks the first time Rum Group has issued formal revenue guidance, following the close of the Northern Data acquisition
• For Q3 2026, the first full quarter including Quake AI operations, management expects total consolidated revenue between $87 million and $93 million
• Management plans to expand formal guidance over time to include longer-term forecasts as forecasting visibility improves, and building a disciplined, credible guidance process is a key priority for the leadership team
• Management reaffirmed that it expects to hit another all-time revenue record in the upcoming Q3 2026 quarter

This is the first quarterly report following the close of the Northern Data acquisition that created Rum Group Inc.'s two business segments. Full consolidated Q2 2026 revenue was $40.4 million, a 61% increase year-over-year from $25.1 million in Q2 2025. For the legacy Rumble video segment: average global monthly active users reached 57 million, and ARPU was 48 cents, up 20% quarter-over-quarter. Tether advertising contributed $4.8 million to Rumble's Q2 2026 revenue. For the newly formed Quake AI segment (formed from the Northern Data acquisition): the business currently holds a combined fleet of approximately 22,000 NVIDIA H100 and H200 GPUs, which is operating at over 85% utilization as of Q2 2026. Quake AI added incremental data center expenses and $5 million in payroll/administrative costs to the quarter's consolidated operating expenses. Formal separate segment revenue and profitability reporting will begin in Q3 2026.

No explicit material risks or operational failures were discussed during the call. Management noted that securing AI hardware, data center equipment, and completing site development for 250MW of new capacity present execution challenges, but stated that the company has strong line of sight to supply to fulfill contracted customer commitments.

Q: Investors are debating if AI compute pricing will drop when supply catches up to demand. What is management's outlook for AI compute supply and demand over the near term? / A: Management believes the AI industry is still in early stages, with explosive demand growth expected for inferencing and agentic AI. In management's view, AI compute capacity will not catch up to demand over the next 1-2 years, and AI compute will remain scarce in that timeframe. (177 characters)

Q: What is Rum Group's current M&A strategy after closing the Northern Data acquisition, and what types of targets would management consider? / A: Management noted that it is very early post-acquisition, and the leadership team's primary current focus is on monetizing the 250MW of unmonetized capacity already held by the company. While management will consider future M&A opportunities that create shareholder value, that is not a current priority. (222 characters)

Q: What are the main execution challenges for bringing the 250MW of new AI capacity online, how much equipment is already contracted, and would the company consider the power-and-shell (customer-owned hardware) model? / A: Management only signs customer contracts after securing strong line of sight to required equipment. $47 million in Q2 investing activities went toward purchasing required IT CapEx for contracted deals, and the company has secured NVIDIA supply allocations to meet obligations. The power-and-shell model generates only $1.5-$2 million per megawatt annually, compared to ~$11 million per megawatt for AI compute as a service, so the company will prioritize its higher-margin AI compute as a service model. (431 characters)

Q: How much of Rumble's Q2 ad revenue came from Tether ad commitments? / A: Management confirmed that Tether contributed approximately $4.8 million in advertising revenue to Rumble during Q2 2026. (80 characters)