Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 12, 2026 · Beat 0 of last 4 quarters
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White Fiber's progress at NC1 and its expanding cloud services backlog underscore the strong demand for power-ready AI infrastructure and the importance of speed to market. The company's retrofit-first approach and cross data center networking technology could help address power scarcity and community pushback, potentially enabling more efficient use of fragmented power resources. The Krambu agreement and new customer contracts signal continued growth in GPU-as-a-service and colocation capacity, supporting the broader AI infrastructure buildout.
White Fiber reported Q2 revenue of $28.8 million, up 54% year-over-year, with cloud services revenue of $23.8 million and colocation revenue of $4.7 million. The quarter included $12.3 million from a previously disclosed customer termination and $4 million of related expenses. Adjusted EBITDA was $5.5 million, and the company ended the quarter with $56.1 million in cash. NC1 moved into active customer deployment with ~20MW available and billing commenced; the remaining capacity is expected to reach full run-rate billing by end of August. The company signed new multiyear cloud services agreements totaling over $540 million, including deals with Base 10 and Prime Intellect, and secured exclusive access to 100MW of liquid-cooled colocation capacity from Krambu beginning in 2027.
Management emphasized that the demand backdrop for power-ready, high-density AI infrastructure remains extraordinary, particularly for 2027 deployments, and that capacity able to reach the market within 12-18 months is extremely scarce. They are advancing the next colocation opportunity—a site that could support ~60MW in 2027 and scale to 250MW+—and are negotiating a purchase agreement. The NC1 permanent financing has reached exclusivity with a consortium of lenders, and completion would recycle capital into the next project. Cloud services are shifting to longer-duration, capital-efficient contracts, with a new managed services model expected to generate attractive incremental margins. They also highlighted the potential of their patent-pending cross data center networking technology, targeting an initial commercial launch by September 2026.
“We have wonderful champagne problems for Tranche 2. We have overwhelming demand for that.”
on NC1 Phase 2 demand
“The margin profile would look more like a software offering than a hardware offering.”
on Managed services margins
“We're not pursuing growth for its own sake. We're focused on opportunities that combine advantaged power, credible customer demand and financeable contract structure.”
on Capital discipline
How do you balance upfront prepayments versus overall return on multiyear cloud services contracts?
Michael Francisco explained that they evaluate deals at the project level, focusing on high-quality customers, positive cash flow throughout, and limiting capital deployed. Prepayments are a mechanism to reduce capital needs, and they get creative with structures like the 2-year option on the Base 10 deal to benefit both parties.
How do you think about the long-term mix between cloud services, colocation, and managed services?
Samir Tabar noted the two businesses have separate teams and skill sets, but there is a path to integration. Michael Francisco added that the current structure creates healthy tension, where the cloud team must earn the right to use data center capacity, and they are moving toward vertical integration more quickly than expected.
Are customers leaning toward longer-duration contracts, and how does NC1 execution impact those conversations?
Michael Francisco said customers are reevaluating duration due to rising GPU costs—H100 cost per hour is higher today than at launch—so they want to preserve access and lower total cost. Longer deals also allow better economics for both sides. Samir Tabar clarified that NC1 execution is separate from cloud contracts.