WhiteFiber Achieves Strong Growth
WhiteFiber Posts 54% Q2 Revenue Increase, Secures $865M Nscale Cloud Agreement
Key Points
WhiteFiber disclosed an $865 million, 10-year cloud services agreement with Nscale, complemented by more than $160 million in new contracts in France, including GPU deployments.
The company is negotiating exclusivity with a consortium of lenders for secured financing for NC-1; if completed, the financing is expected to return a significant portion of invested capital to the balance sheet and enable recycling into future development.
In Q2, a $12.3 million termination payment was included in revenue; excluding this amount, revenue would have been about $16.5 million, meaning the termination payment accounted for roughly 43% of reported revenue.
WhiteFiber plans to expand NC-1 capacity beyond the initial 40 MW, bringing online MTL-3 and aiming for about 70 MW gross by Q4 2026, supported by a roughly 1,500 MW project pipeline focused on retrofits and sustainability.
The quarter also included about $6 million in interest expense; WhiteFiber issued $230 million of 4.5% convertible senior notes in January to help finance its development pipeline.
WhiteFiber posted Q2 2026 revenue of $28.8 million, a 54% jump from a year ago, sending shares up 15% after the results, according to Seeking Alpha. The quarter was boosted by a one-time $12.3 million termination payment — without it, revenue would have been about $16.5 million.
The company also revealed more than $540 million in new multi-year Cloud Services contracts and said it is in talks to secure financing for its flagship North Carolina data center campus, MarketWatch reported.
$865 Million Nscale Deal Anchors Cloud Growth
Cloud Services revenue hit $23.8 million in Q2, up sharply year over year. The biggest driver was an $865 million, 10-year agreement with Nscale, according to Yahoo Finance. WhiteFiber also signed more than $160 million in new contracts in France, covering GPU deployments in Paris. Additional GPU deals were signed in Canada and Iceland.
Total new Cloud Services contracts topped $540 million for the quarter. Adjusted EBITDA rose 69% to $5.5 million, per Grafa. Gross margin came in at 59.4%. Despite the revenue beat, the net loss widened to $15 million, partly due to a $5 million software impairment charge and about $6 million in interest expense.
NC-1 Campus Flips On, Eyes 300 MW Potential
WhiteFiber's NC-1 data center in North Carolina moved into active deployment this quarter. Initial billing has begun, and the company expects the site to reach its full 40 MW run-rate by end of July, Yahoo Finance reported. The campus has the potential to scale to roughly 300 gross MW over time.
Beyond NC-1, WhiteFiber plans to bring its MTL-3 facility online and reach about 70 gross MW by Q4 2026. The company's project pipeline stands at roughly 1,500 MW, focused on retrofits and sustainability. Colocation revenue for the quarter was $4.7 million, and remaining performance obligations in that segment totaled $932.9 million, per Market Screener.
Lender Talks Could Recycle Capital Into Future Sites
WhiteFiber is in exclusivity talks with a group of lenders to secure financing for NC-1, MarketWatch reported. If the deal closes, the company expects to return a large portion of the capital it has already invested back onto its balance sheet. That freed-up cash would then be recycled into future data center development.
To fund its pipeline, WhiteFiber issued $230 million of 4.5% convertible senior notes back in January. The operating loss for Q2 was $9.3 million, and the net loss was $14.98 million, according to Market Screener. The financing deal, if completed, would help ease that capital burden as the company scales up.
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