Key Highlights

  • WYFI reported second-quarter 2026 Revenue of $28.8 million, up 54 percent year over year and beating the $18.6 million estimate by 54.94 percent.
  • Adjusted EPS of negative $0.39 beat the negative $0.50 estimate by 22 percent, while adjusted EBITDA rose to $5.5 million from $3.3 million a year earlier.
  • The company's NC-1 Data Center in North Carolina moved into active customer deployment, with approximately 20 megawatts of IT capacity available and billing underway.
  • Since the last earnings call, WhiteFiber signed new multi-year cloud services agreements representing more than $540 million in aggregate contract value.

NC-1 Deployment Advances Despite Equipment Delays

WhiteFiber, Inc. (NASDAQ:WYFI), a New York City-based provider of AI infrastructure and high-performance data center capacity, said its flagship NC-1 Facility has moved into active customer deployment for Nscale and its investment-grade offtaker, with the full 40 megawatts of contracted IT load expected to reach full run-rate billing by the end of August. Management said the ramp took longer than originally anticipated due to switchgear equipment delivery and commissioning issues that have since been resolved, though the underlying contracted Economics of the agreement remain unchanged.

The company is also evaluating delivery of an additional 200 megawatts of incremental power at the NC-1 site, which together with earlier phases could bring the campus to approximately 300 megawatts gross, though this expansion remains a longer-term opportunity subject to the local utility's delivery process.

Cloud Services Pivots Toward Longer-Duration Contracts

Second-quarter cloud services revenue was $23.8 million, though results included approximately $12.3 million associated with a previously disclosed customer termination and related downtime before a replacement contract began. Since the last earnings call, the company signed new multi-year agreements including a three-year deal with Baseten worth approximately $165 million and a three-year agreement with Prime Intellect worth approximately $108 million, marking WhiteFiber's first deployment of NVIDIA's Vera Rubin GPUs.

Management said these agreements are structured to be funded through customer prepayments and third-party equipment financing, limiting the Capital required from WhiteFiber's own balance sheet, though the temporary revenue disruption from the customer termination illustrates the risk inherent in a Business model still concentrated among a relatively small number of large contracts.

Permanent NC-1 Financing Remains a Key Near-Term Catalyst

The company entered exclusivity with a consortium of lenders for the proposed secured financing of NC-1, with diligence underway and definitive documentation in negotiation. Management said this financing process has taken longer than initially anticipated, and there can be no assurance it will be completed on favorable terms or at all, though reaching exclusivity represents meaningful progress. If completed, the financing would return a significant portion of capital invested in NC-1 and enable the company to advance the next site in its development pipeline, which management said could support approximately 60 megawatts in 2027 scaling to more than 250 megawatts over time.

Conclusion

WhiteFiber's revenue growth and NC-1's progress toward full contracted operations support management's view that the company's retrofit-first development approach can bring AI infrastructure capacity to market faster than traditional greenfield projects. The completion of NC-1's permanent financing, along with the pace at which newly signed cloud services contracts ramp to full deployment, represent the primary catalysts that could shape the company's trajectory into 2027.