Earnings Recap — Q1 FY2027
CY Q3 2026 · Reported August 14, 2026 · Beat 3 of last 7 quarters
HIVE Digital Technologies Ltd. reported Q1 FY2027 revenue of $79M, a miss of 3.2% against consensus, and EPS of $-0.54, a miss of 157.1%.
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HIVE's rapid scaling of contracted HPC revenue to $180M ARR, with a $350M GB300 deal and a $45M colo LOI, underscores the accelerating demand for AI compute capacity, particularly in sovereign/Canadian markets. The company's ability to secure long-term contracts with investment-grade tenants and leverage vendor financing highlights the capital efficiency emerging in the AI infrastructure buildout. The continued expansion of power capacity (860 MW global footprint) and conversion of legacy Bitcoin mining sites to Tier 3 data centers positions HIVE as a meaningful participant in the AI infrastructure supply chain.
HIVE reported Q1 FY2027 revenue of $79M, up 73% YoY, with Bitcoin mining contributing $72M and HPC/AI contributing $7.1M (10% of revenue). Gross operating margin was $24M, up 53% YoY, and adjusted EBITDA was $13.4M, returning to positive after a negative Q4. The company announced a new B200 cluster at Bell Canada's Winnipeg facility, which drove HPC revenue growth. GAAP net loss was $143M, driven by a $85M noncash Swedish VAT provision and $54M depreciation. The company raised $130M in exchangeable notes, but cash balance was not disclosed in the transcript.
Management discussed the growth of HPC revenue, noting the B200 cluster went online in May, contributing to $7.1M HPC revenue for the quarter (annualized ~$28M). They expect HPC revenue to continue growing as more GPU clusters come online. They also mentioned ongoing expansion in Paraguay and Canada, and reiterated their focus on building AI gigafactories. They discussed the Swedish VAT provision of approximately $85M, which they are appealing and do not plan to pay. No specific ARR targets or long-term revenue guidance were mentioned in the transcript.
“We have hit a massive milestone, so excited to share. Our team has done a tremendous job, and we are at $180 million of contracted revenue because we just announced a new 5-year deal, which has $70 million ARR to our HPC business unit.”
on New GB300 contract
“We do not think that, that's a good use of shareholder capital to pay down this, in my opinion, an egregious tax claim, and we've paid all the taxes in the normal course of business.”
on Swedish VAT provision
“We're not stopping at $200 million ARR when we hit that number for GPU cloud. We see the demand taking us well past that number, very far past that number.”
on Demand outlook
Could we get some initial thoughts on if you run some IRRs on the GPU investment, what kind of returns potentially you're getting there and maybe some additional thoughts on CapEx here to fund the build-out?
Aydin Kilic said the 5-year term locks in EBITDA margins of 75-80%, paying off GPUs in about 3 years with the balance as free cash flow, effectively a 1.6x return. He noted ~20% down payment on the $185M CapEx, with vendor financing for the rest, and that POs are secured so GPUs are in production.
Any thoughts on the target gross margin for the HPC business after signing these contracts?
Aydin Kilic explained that current margins are impacted by legacy A-Series cards renting at $0.40/GPU hour, but as newer generation GPUs (GB200/GB300) come online at scale, margins should improve substantially due to higher profit density and economies of scale.
Is there anything significant left to get the definitive agreement with Boden? Or do you just need a little bit of time there? And then secondly, could you just talk a little bit about demand trends and pricing trends on both the GPU and the colocation side?
Aydin Kilic said the Boden lease is being refined to achieve favorable terms and potentially investment-grade bond financing, with a definitive agreement expected in September. On demand, he noted strong pricing trends, citing their B200 cluster at $2.90/GPU hour vs IREN's earlier $2.20, and said they see demand 'well past' the $200M ARR target, with multiple parties ready to rent additional clusters.