WhiteFiber Q2 2026 Earnings: Revenue Rises 54% as Net Loss Widens

WhiteFiber (Nasdaq: WYFI) reported Q2 2026 revenue of $28.8 million, up 54% from $18.7 million a year earlier, while diluted loss per share widened to $0.39 from $0.33. Adjusted EBITDA rose 69% to $5.5 million, but the GAAP net loss expanded to $15.0 million as interest expense and a software impairment weighed on results. Cloud Services revenue included $12.3 million associated with a customer termination, while initial billing began at the NC-1 data center.

Core financial results

Reported revenue and adjusted EBITDA improved, but that progress did not translate into narrower GAAP losses. Gross profit excluding depreciation and amortization increased by about 49%, while the corresponding margin declined by approximately two percentage points.

Except for adjusted EBITDA, the following measures are GAAP results.

Q2 2025 gross profit excluding D&A and the related margin are calculated from the disclosed revenue and cost-of-revenue figures.

Business and segment performance

Cloud Services remained WhiteFiber’s largest business, producing $23.8 million of revenue, up 43% year over year. However, approximately $12.3 million was associated with a previously disclosed customer termination. Colocation revenue increased 173% to $4.7 million as NC-1 moved from construction toward active customer deployment.

Initial NC-1 billing has started, and WhiteFiber expected to reach full contracted run-rate billing across 40 megawatts of contracted IT load later in August 2026. Remaining performance obligations for colocation totaled approximately $932.9 million at quarter-end, primarily reflecting the long-term NC-1 agreement.

WhiteFiber also signed more than $540 million of multi-year Cloud Services agreements after its May 2026 earnings call. The following are the principal disclosed deployments and their targeted service dates.

Termination revenue lifted cloud growth while interest costs widened the loss

The customer-termination amount represented approximately 52% of Cloud Services revenue and 43% of total Q2 revenue. On a simple subtraction basis, Cloud Services revenue excluding that disclosed amount would have been about $11.5 million, compared with $16.6 million a year earlier. This is not a company-reported organic measure, but it shows that the headline 43% cloud growth rate was heavily influenced by termination-related revenue.

At the operating level, approximately $5.7 million of additional gross profit excluding D&A and about $0.7 million of lower general and administrative expense largely offset a $5.0 million software impairment and higher depreciation and amortization. As a result, the operating loss remained close to the prior-year level despite the substantial increase in revenue.

The larger deterioration occurred below operating income. WhiteFiber recorded $4.6 million of third-party interest expense and $1.4 million of related-party interest expense, compared with no interest expense in the prior-year quarter. Total other expense was $6.5 million, versus other income of $0.8 million a year earlier, contributing to the wider net loss. Adjusted EBITDA excludes interest, depreciation and amortization, the impairment, and share-based compensation, explaining much of the gap between positive adjusted EBITDA and the GAAP loss.

Liquidity and project financing

Cash and restricted cash totaled $60.4 million as of June 30, 2026. Because the company reported these balances together, the release did not specify how much of that amount was unrestricted.

After quarter-end, WhiteFiber expanded its RBC credit facility to provide commitments of up to CAD $115 million, plus a potential CAD $25 million accordion subject to conditions. The company had drawn CAD $36.8 million as of July 15, 2026.

WhiteFiber also entered exclusivity with a lender consortium for proposed secured financing for NC-1. Management said the transaction, if completed, could return a significant portion of the capital invested in NC-1 to the balance sheet for use in future developments. The financing remained subject to diligence, definitive documentation, approvals, and other conditions, with no assurance that it would close on favorable terms or at all.

Management perspective

CEO Sam Tabar characterized NC-1’s transition into customer deployment as evidence that WhiteFiber’s development model is beginning to operate as intended. Management is repositioning Cloud Services around larger and longer-duration agreements, including deployments using NVIDIA B300 and Vera Rubin infrastructure.

The company is also evaluating a more capital-light managed-services model under which customers would finance the hardware while WhiteFiber deploys and operates it. Management said its next development opportunity was in late-stage diligence and cited scarce large-scale power availability in 2027 alongside demand that includes opportunities with investment-grade credit support.

Recent insider transactions

The provided insider records show no open-market purchases or sales during the latest six-month period, with insiders holding a total of 27.6 million shares. Among the latest 10 reported entries, only three included both a defined transaction action and a reported value; the remaining incomplete entries are omitted below.

These records describe equity awards and a derivative conversion rather than open-market purchases or sales, so they do not by themselves indicate insiders’ views on the company’s prospects.

Risks investors need to monitor

• Cloud revenue comparability: The $12.3 million customer-termination contribution accounted for a substantial portion of reported revenue, making the headline cloud growth rate less representative of the underlying run rate.
• Deployment execution: NC-1’s full billing ramp and the Paris, Ontario, Iceland, and Canada projects depend on commissioning, procurement, and site-level arrangements being completed on schedule.
• Financing and interest costs: Interest expense was a major reason the net loss widened, while the proposed NC-1 secured financing has not yet been finalized.
• NC-1 concentration: Most of the $932.9 million in colocation remaining performance obligations relates to the NC-1 agreement, increasing the importance of execution at that campus and the associated customer relationship.

Summary

WhiteFiber’s Q2 2026 results showed progress in colocation deployment, contract expansion, and adjusted EBITDA, but the quality of reported cloud growth was affected by termination-related revenue. Interest expense and the software impairment kept GAAP losses elevated. The main operational tests ahead are completing the NC-1 billing ramp, bringing contracted GPU deployments into service on schedule, and securing project financing on acceptable terms.