AGPU

This article first appeared on GuruFocus. Release Date: August 17, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Signed nearly $3 billion in new contracts in Q2 2026, far exceeding the anticipated $1 billion, bringing total contract value to over $3.2 billion year-to-date. Received a $317 million customer prepayment for the cluster expansion, demonstrating strong customer commitment and improving cash flow. Expanded partnership with Duos Technologies to add 55 megawatts of capacity across multiple locations, with plans to co-own data centers through an SPV. Projected gross margins of 28%-44% and EBITDA margins of 62%-76% for Build projects, indicating strong profitability potential. Active qualified pipeline of $5.9 billion, nearly double the current signed book, with significant demand for next-generation GPUs like Blackwell and Vera Rubin. First full quarter of compute revenue of $3.2 million, with positive operating cash flow of $17.4 million in H1 2026, driven by customer prepayments. Expected annualized run rate to exceed $696 million once the full signed book is deployed, with the Columbus cluster alone expected to generate $20-21 million per quarter. Net loss of $17.2 million in Q2, driven by $13.1 million in losses on digital assets, primarily unrealized fair value changes on Aethir holdings. Adjusted EBITDA was negative $4.9 million for the quarter, indicating ongoing operating losses as the company scales. Revenue recognition is heavily dependent on deployment timelines, with Build revenue not yet started and only Access model contributing to Q2 revenue. The company faces execution risks in deploying multiple clusters globally, with potential delays in go-live dates and customer acceptance. Funding for projects relies on customer prepayments and project financing, which may be subject to market conditions and lender availability. The business is exposed to volatility in digital asset prices, which can significantly impact reported financial results. The company's growth is tied to the AI infrastructure market, which, while large, is competitive and subject to rapid technological changes. Warning! GuruFocus has detected 7 Warning Signs with AGPU. Is AGPU fairly valued? Test your thesis with our free DCF calculator. Q: What were the key financial results for Q2 2026, and how does the company's revenue ramp look going forward?A: CFO Jeremy Yaukey-Witter reported Q2 revenue of $3.2 million, the first full quarter of compute revenue, up from $35,000 in Q1. Net loss was $17.2 million, driven by $13.1 million in losses on digital assets, primarily unrealized fair value changes on Aethir holdings. The company generated $17.4 million in positive operating cash flow for the first half of 2026, driven by customer prepayments totaling $60.8 million. The company ended the quarter with $21.9 million in cash. Looking ahead, the exit run rate leaving Q2 was $37 million annualized, which is expected to climb to roughly $139 million as the April cluster goes live in Q3, and to exceed $696 million annualized once the full signed book is deployed across Q4 into Q1 of next year. Q: Can you provide details on the company's contract signings and the total contract value (TCV) added during the quarter?A: CEO Christopher Miglino stated that the company signed close to $3 billion in additional agreements during the quarter, far exceeding the anticipated $1 billion. CFO Jeremy Yaukey-Witter added that through the end of Q2, the company had signed $317 million in TCV, and in the first half of Q3 (about 6 weeks), they added an incremental $2.9 billion comprising three Build contracts announced in July. Year-to-date through August, this totals more than $3.2 billion in TCV in under 8 months. Q: What are the expected margins on the Build projects, and how does the company plan to fund these projects?A: CEO Christopher Miglino provided forward-looking modeling for Build project economics, indicating gross margins between 28% and 44% and EBITDA margins between 62% and 76%. Regarding funding, each project includes a customer down payment of 20% to 45% of project cost upfront. The company then seeks project financing against the revenue stream, leveraging the strong credit of clients (e.g., A+ S&P credit clients). This financing is typically off-balance-sheet, reducing the need to raise equity capital. In cases where equity investment is considered, the company can do so at favorable stock prices or rely on project financing. Q: What is the significance of the partnership with Duos Technologies, and what are the expansion plans?A: CEO Christopher Miglino announced a signed agreement for an additional 55 megawatts across multiple locations with Duos Technologies. The partnership includes Axe Compute participating in the ownership of data centers through an SPV, which allows Duos to develop more data centers with less capital. Duos CEO Douglas Recker highlighted their modular approach, building e-houses and chiller plants off-site and deploying them in 60-90 days, focusing on the 5-30 megawatt range. This speed enables rapid deployment, with some projects expected to go live by the end of the year or early Q1. Q: Can you provide details on the first customer prepayment received and the status of the Columbus, Georgia cluster?A: CEO Christopher Miglino announced the receipt of the first prepayment of $317 million plus for the cluster being expanded. President Kyle Okamoto provided a live video walkthrough of the Columbus, Georgia facility, which is a Tier 3 data center housing an NVIDIA Blackwell B300 cluster of 288 nodes. The cluster features 8 B300 GPUs per node with 288 GB of HBM3e memory, connected via InfiniBand Quantum-X800 at 6.4 terabits per second per node, and supported by over 20 petabytes of high-speed storage from partner WEKA. The cluster is set to go live in the coming weeks, with plans to triple its size in the next few months. Q: What is the current sales pipeline, and what is the company's target for new signings?A: President Kyle Okamoto reported tracking $5.9 billion in active qualified pipeline with 98 open opportunities, nearly double the size of the current signed book. Roughly two-thirds of this demand is for Blackwell-class GPUs (B200, B300, GB300) or Vera Rubin chipsets. The company is already fielding significant early demand for NVIDIA's Vera Rubin architecture. CEO Christopher Miglino set an objective of signing an additional $2 billion in contracts before the end of 2026, which he believes the company is well on its way to achieving and potentially exceeding. Q: How is the company scaling its organization to handle the deployment of these large clusters?A: President Kyle Okamoto stated that the company is actively adding more than 20 people, with every hire funded by already-signed contracts. The hiring is focused on deployment and operations (data center engineers, cluster commissioning specialists, 24/7 operations staff), infrastructure engineering (GPU, CPU, network fabrics, storage specialists), and customer support and commercial operations. The philosophy is to not staff up on hope but to scale fast to deliver on commitments, with headcount following committed revenue in a disciplined manner. Q: Can you explain the difference between the Build and Access business models and how they contribute to revenue?A: CEO Christopher Miglino explained that Build is the primary engine, where the company designs, deploys, owns, and operates dedicated GPU clusters for enterprises on a long-term basis (5-10 year contracts). Access is a complementary recurring stream providing fast access to GPU capacity across various locations, acting as a top-of-funnel to meet companies interested in GPUs immediately. CFO Jeremy Yaukey-Witter noted that all Q2 compute revenue came from the Access model, while Build revenue begins at go-live. Certain Access contracts can commence service delivery as quickly as 48 hours after contract execution, while Build contracts take about 4 months to reach ready-for-service milestones. Q: What is the company's approach to adjusted EBITDA, and why was it introduced this quarter?A: CFO Jeremy Yaukey-Witter introduced adjusted EBITDA as a meaningful performance measure. It adds back interest, income taxes, depreciation, amortization, and stock-based compensation, and excludes unrealized noncash fair value adjustments on digital assets ($11.8 million of the $13.1 million loss this quarter). It does not exclude realized portions, such as ATH used to pay for compute sold to customers. On this basis, adjusted EBITDA was approximately negative $4.9 million For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Completed the divestiture of the legacy rail business on August 5, 2026, transitioning the company into a focused AI infrastructure and Edge Data Center operator. Crystallized a $53.2 million gain from the sale of a 5% interest in New APR Energy, significantly strengthening the balance sheet with $50.4 million in immediate cash. Achieved positive adjusted EBITDA ahead of schedule, driven by a structural shift toward higher-margin Technology Solutions and infrastructure services. Validated the Edge AI strategy through a $111 million colocation agreement with Axe Compute for 10 megawatts of capacity in Columbus, Georgia. Leveraged a proprietary 'clean room' patent to differentiate modular deployments, addressing the high sensitivity of GPU clusters to environmental contaminants. Scaled the Technology Solutions segment to $3.23 million in quarterly revenue, serving as a low-capital-requirement engine to support broader infrastructure deployments. Strengthened leadership with the appointment of Dipan Patel as COO to drive execution across the expanding Edge Data Center and technology platforms. Reconfirmed 2026 revenue guidance of over $50 million, supported by a $43.5 million bookings backlog and expected GPU-as-a-service contributions. Projected a Q4 2026 annualized recurring revenue exit run rate exceeding $70 million, carrying anticipated gross margins above 70%. Established a 2027 revenue framework of at least $160 million, assuming full-year contributions from contracted GPU programs and colocation deployments. Planned to reach 25 megawatts of contracted capacity in 2026, with a total of 75 megawatts now under contract following recent expansions. Utilizing a non-dilutive SPV financing model with Axe Compute to fund up to 55 megawatts of additional capacity across multiple U.S. locations. Recorded a $10 million receivable subject to a 12-month holdback related to the APR Energy asset sale. Transitioned to a streamlined workforce of approximately 25 full-time employees following the rail business divestiture, down from 100 a year prior. Acquired the Columbus, Georgia data center for $30 million using a capital-efficient structure including a $13 million zero-coupon seller note. Identified 'stranded power' in tier 3 and tier 4 markets as a primary constraint and strategic focus for rapid modular deployment. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The 55-megawatt expansion is incremental to the initial 10-megawatt deal, bringing total contracted capacity with Axe to 65 megawatts. Axe Compute will provide up to $140 million in cash equity for a 49% stake in the projects, effectively covering the majority of data center CapEx. This SPV structure provides a non-dilutive path to scale, creating assets that Duos can eventually borrow against once revenue commences. Management emphasized their ability to deploy full infrastructure in under 60 days, significantly faster than traditional data center builds. The company's niche focus on 1-20 megawatt sites allows them to access 'stranded power' that does not require lengthy utility approval processes. Proprietary clean room technology is cited as a critical requirement for customers placing high-value GPU clusters in modular environments. The demand funnel exceeds 100 megawatts in the 5-10 megawatt range, with customers increasingly seeking high-density cooling that legacy data centers cannot provide. Management noted they are now in a position to be selective, focusing on tier 1 credit-worthy customers to ensure long-term recurring revenue stability. The strategy targets markets like South Carolina, Iowa, and Texas where power costs remain attractive at $0.04 to $0.07 per watt hour.

This article first appeared on GuruFocus. Release Date: August 17, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Completed the sale of the legacy rail business, becoming a pure-play AI infrastructure and edge data center company. Signed a five-year co-location agreement with Axe Compute for 10 megawatts at the Columbus, Georgia campus, valued at over $111 million. Expanded the Axe Compute relationship with new service orders adding up to 55 megawatts, representing over $500 million in aggregate base payments. Reported a significant improvement in gross margin, increasing to 55.8% in Q2 2026 from 37.3% in Q2 2025. Achieved positive adjusted EBITDA of approximately $0.5 million in Q2 2026, ahead of plan, and expect it to remain positive for the rest of the year. Strengthened the balance sheet with $112.3 million in cash and positive operating cash flow of $11.9 million for the first half of 2026. Increased Technology Solutions backlog to $25 million, demonstrating continued demand for services. Secured a non-dilutive financing model with Axe Compute, including up to $140 million in cash equity investments, allowing for faster data center launches. Reconfirmed 2026 revenue guidance to exceed $50 million, with a strong fourth-quarter adjusted EBITDA expectation of $8 million to $10 million. Provided an early 2027 framework calling for total revenues of at least $160 million, driven by contracted programs. Revenue from continuing operations for the first half of 2026 declined to $8.32 million from $8.68 million in the same period last year. Operating expenses for the first half of 2026 increased to $7.63 million from $5.11 million in the prior year, reflecting deliberate investments and one-time costs. The company reported a loss from operations of $3.13 million for the first half of 2026, compared to a loss of $2.07 million in the prior year. The APR Energy asset management agreement is winding down, with minimal revenue expected through the third quarter, reducing a previous revenue stream. The company's growth is heavily dependent on the successful deployment and utilization of its GPU as a Service business, which carries execution risks. The Axe Compute expansion is subject to required approvals, financing, and other conditions, which could delay or alter the expected timeline. The company's 2027 revenue framework is based on early projections and includes only announced and contracted programs, leaving potential for shortfalls if deployments slip. The company's cash position, while strong, is partially offset by significant investing outflows of $77.1 million for growth capital and deposits. The company is still in the process of hiring a new CFO, which could create temporary leadership uncertainty. The company's transition away from the rail business and APR has resulted in a significant reduction in workforce, from about 100 to 25 full-time employees, which could strain operational capacity. Warning! GuruFocus has detected 3 Warning Signs with DUOT. Is DUOT fairly valued? Test your thesis with our free DCF calculator. Q: Is the 55-megawatt Axe Compute announcement incremental to the previously signed 10-megawatt deal, and is that capacity IT load or gross?A: Doug Recker (CEO): The 55 megawatts is gross and is in addition to the 10 megawatts already signed for Columbus, Georgia. The new capacity is contracted across multiple US locations, bringing total contracted capacity with Axe Compute to 65 megawatts. Q: Can you clarify the financial structure of the Axe Compute expansion, specifically the $140 million equity investment and how it covers data center CapEx?A: Doug Recker (CEO): The $140 million cash equity investment from Axe Compute for their 49% stake effectively covers the majority of the data center CapEx. With our build costs coming in under $6 million per megawatt, we only need to contribute roughly $30 million per site for our 51% majority stake, making this a non-dilutive financing model that allows us to launch more data centers faster. Q: What is the timeline for clearing the contracted backlog and the new Axe Compute service orders?A: Doug Recker (CEO): The initial orders (cluster one and the Georgia expansion) are on track to be delivered by the end of the year. The second piece of the Axe Compute expansion is expected to be delivered by the end of the first quarter of 2027, which represents a strong delivery timeline of under six months. Q: What is the binding constraint for growth in Tier 3 and Tier 4 markets, and how large is the pipeline beyond the current 25 megawatts and 55 megawatts for Axe?A: Doug Recker (CEO): The pipeline is robust, with over 100 megawatts in 5-10 megawatt tranches in our funnel for this year alone. The binding constraint is not power or capital, but our disciplined approach to execution. We are focusing on "stranded power" sites where utilities already have transmission capacity, and we are being selective about customers, prioritizing Tier 1 credit companies to ensure long-term reliability and success. Q: Can you provide more detail on the speed of deployment, specifically the timeline from site selection to billing customers at the Columbus facility?A: Doug Recker (CEO): The speed is exceptional. We purchased the Columbus building in early July and by mid-August, we had installed over seven megawatts of new infrastructure, including generators, cooling plants, PDUs, and a 17,000 square foot raised floor, all within under 60 days. This rapid deployment capability is a key differentiator and was validated by a customer site visit last week. Q: Regarding the Axe Compute deal, can you share who the end customer is and their creditworthiness?A: Doug Recker (CEO): The end customer is a Tier 1 hyperscaler who visited the site in person. While we cannot disclose their name, they are extremely credible and creditworthy. We funded our GPU program based on this customer, and we conducted thorough due diligence to ensure they are committed to the five-year term. Q: How should we view the uptick in operating expenses in the first half of 2026, and will that growth moderate?A: Adrian Goldfarb (CFO): The increase in operating expenses is largely one-time in nature, reflecting the complex accounting and legal costs associated with the APR sale and rail divestiture. We have streamlined operations, reducing headcount from about 100 people last year to roughly 25 full-time employees now. Going forward, SG&A growth will be very slow and tied to specific opportunities. Q: Can you explain the rationale behind the different contract values for the two 10-megawatt deals at the Columbus site ($176 million for three years vs. $111 million for five years)?A: Doug Recker (CEO): The first deployment is a mixed model that includes our GPU-as-a-Service offering, where we own the GPUs. The second deployment is a straight colocation deal where we do not own the GPUs. This aligns with our core business model of providing high-density infrastructure and recurring colocation revenue. Q: With the $140 million equity investment and current cash balance, are you fully funded for the Axe Compute projects, and how will you finance future growth?A: Doug Recker (CEO): Yes, we are fully funded for these projects. The partnership provides the cash to order infrastructure immediately and brings in revenue we can borrow against. We are not in the game to dilute investors. The $140 million infrastructure asset provides a strong base for future debt financing, and as recurring revenue ramps, it will further strengthen our balance sheet and credibility. Q: Can you elaborate on the competitive environment and what differentiates Duos in the 1-20 megawatt niche?A: Doug Recker (CEO): The demand in our niche is exploding, and we anticipate more competitors entering the market. However, we have two key advantages: nine years of experience deploying modular infrastructure and a patented "clean room" technology. This is critical because GPUs are extremely sensitive to dust and pollen, and without this clean room, customers will not place $40-100 million worth of GPUs in a modular environment. This is a major differentiator for us. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Duos Technologies Group, Inc.? Here are five stocks we like better. Duos completed its transition to AI infrastructure and edge data centers after selling its legacy rail business and receiving $50.4 million from the APR asset sale, including a $53.2 million gain. Second-quarter continuing-operations revenue rose 30% to $6.18 million, while gross margin improved to 55.8% and adjusted EBITDA turned positive. Cash increased to $112.3 million, leaving the company effectively debt-free. Duos expanded its data-center pipeline through agreements with Axe Compute covering 65 megawatts and more than $500 million in expected five-year base payments. Management reaffirmed 2026 revenue above $50 million and outlined preliminary 2027 revenue of at least $160 million. Duos Technology Stock, AI Systems Can Prevent Train Derailments Duos Technologies Group (NASDAQ:DUOT) said its second-quarter results reflected the completion of its shift from rail technology toward edge data centers, AI infrastructure and technology solutions, supported by divestitures, new customer agreements and a substantially larger cash balance. Chief Executive Officer Doug Recker said the company completed the sale of its legacy rail business, Duos Technologies Inc., on Aug. 5. The divested business now operates independently under the DuosTI brand, led by President Javier Acosta. Duos will provide transition services for a period following the closing, but Recker said the transaction completes the company’s repositioning as an AI infrastructure and edge data center operator. → Applied Materials Beat Everything but Wall Street’s Expectations for Margins Separately, New APR Energy sold substantially all of its assets during the quarter. Duos held a 5% interest in APR’s parent company and received $50.4 million in cash from the transaction, with another $10 million subject to a 12-month holdback that has been recorded as a receivable. Chief Financial Officer Adrian Goldfarb said the sale generated a $53.2 million gain against a $7.2 million carrying value. Revenue from continuing operations rose 30% to $6.18 million in the second quarter, compared with $4.77 million a year earlier, excluding the divested rail business. Technology Solutions generated $3.23 million in revenue, becoming the company’s largest revenue line. Related-party services and consulting revenue totaled $2.91 million, including $2.71 million of one-time accelerated recognition of remaining APR deferred revenue. → Texas Roadhouse and Brinker International Have the Recipe Rivals Are Missing Goldfarb said future asset management agreement revenue related to APR is expected to be minimal as it winds down through the third quarter, while hosting revenue is only beginning to build. Cost of revenue declined 9% year over year to $2.73 million. Gross margin increased to $3.45 million, or 55.8% of revenue, from $1.78 million, or 37.3%, a year earlier. Operating income was about $50,000, compared with an operating loss of $1.54 million in the prior-year quarter. Adjusted EBITDA was positive at approximately $500,000, excluding the investment-sale gain and stock-based compensation. Consolidated net income was $47.8 million, compared with a $3.5 million net loss a year earlier, largely reflecting the APR-related investment gain. The company ended the quarter with $112.3 million in cash, up from $15.5 million at the end of 2025, and stockholders’ equity of $207.4 million. Goldfarb said the cash increase reflected APR sale proceeds, a March public offering and a $55 million registered direct offering completed in June. He described Duos as effectively debt-free, aside from a small insurance financing balance. → AirJoule Technologies: Short Squeeze Setup Amid Rising Risks Cash provided by operating activities from continuing operations was $11.9 million for the first half of 2026. Long-term deferred revenue totaled $18.8 million, including customer prepayments associated with the company’s GPU program. Duos announced a five-year colocation agreement with Axe Compute Inc. for 10 megawatts of critical IT load capacity at its Columbus, Georgia campus. Recker said the agreement is valued at more than $111 million in contracted revenue over its initial term and is expected to become operational in the fourth quarter. The companies also announced service orders for an additional 55 megawatts of AI data center capacity across multiple U.S. locations under five-year agreements. Recker clarified during the question-and-answer session that the 55 megawatts are gross capacity and incremental to the original 10-megawatt Columbus agreement. Duos said the Axe-related agreements represent more than $500 million in expected aggregate base payments during their initial five-year terms. The companies also entered a related agreement contemplating up to $140 million in aggregate cash equity investments by Axe Compute, subject to approvals, financing, design and other conditions. Under the planned structure, Duos and Axe would jointly own the new data centers, with Duos holding 51% and Axe holding 49%. Recker said the arrangement is intended to provide a non-dilutive funding model for accelerating deployments. He said Duos is evaluating six or seven sites, with two under letters of intent, in Texas, South Carolina, Iowa and Alabama. The company is targeting locations where power is already available at the site, rather than facilities requiring new power-delivery approvals. Duos reaffirmed its goal of deploying approximately 25 megawatts of capacity during 2026 and said it is on track to reach that target. Recker said the company has more than 75 megawatts under contract following the Axe expansion. The company also cited an opportunity with Zero Latency Company, or OLAC, covering up to 15 sites and 225 cabinets under a 10-year arrangement. Duos continues to advance its Nyrstar deployment, which represents about 2 megawatts of contracted capacity and is expected to generate recurring colocation revenue as it becomes operational. Recker said Duos is focusing on deployments generally ranging from 1 megawatt to 20 megawatts, particularly in tier-three and tier-four markets with available power and fiber connectivity. He said the company sees demand from neocloud providers as well as enterprise customers whose legacy facilities may not support higher-density AI workloads. During the call, Recker said Duos acquired its Columbus facility after the quarter ended for $30 million, using $15 million in cash and a $13 million zero-coupon seller note that is to be repaid as incremental power is delivered. He said the company had installed more than 7 megawatts of infrastructure at the facility within roughly 60 days of acquiring the building. Management reconfirmed its expectation that 2026 revenue will exceed $50 million. Goldfarb said the forecast is based on contracted business, customer deposits and scheduled orders, rather than potential future transactions. The company expects its GPU-as-a-service business to contribute about $26 million during the year as deployments and utilization ramp in the second half, while its Technology Solutions backlog is expected to contribute about $25 million. Duos expects adjusted EBITDA to remain positive in the third and fourth quarters, with fourth-quarter adjusted EBITDA projected at $8 million to $10 million. For the fourth quarter, the company expects recurring infrastructure revenue from GPU-as-a-service, colocation and hosting of approximately $17 million to $18 million, representing an annualized recurring-revenue exit rate exceeding $70 million under multiyear agreements. For 2027, management outlined an early framework for at least $160 million in revenue, based only on announced and contracted programs. Goldfarb said the company plans to provide formal 2027 guidance with its third-quarter results. Duos Technologies Group, Inc provides advanced non-intrusive security and inspection solutions utilizing motion-based and artificial intelligence technologies. The company's core offerings include intelligent video analytics, RFID checkpoint systems, and specialized screening devices designed to detect security threats and contraband across transportation, logistics and critical infrastructure environments. Duos integrates proprietary hardware with software to deliver automated inspection and monitoring tools that enhance safety and operational efficiency. Among its primary products are automated gate-entry systems, railcar inspection portals and portable screening devices that use AI-driven image recognition and sensor fusion to identify objects such as unauthorized materials, pipeline anomalies or vehicle defects. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Duos Technologies Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Q2 2026 Revenue Increases Nearly 30%, Driven by Initial Ramp in AI and Data Center Deployments Over $100 Million in Growth Capital Secured Through Multiple Transactions See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox Company Reaffirms 2026 Guidance for 25 MW Deployed and Over $50 Million in Revenue JACKSONVILLE, Fla., Aug. 17, 2026 (GLOBE NEWSWIRE) -- Duos Technologies Group, Inc. (“Duos” or the “Company”) (Nasdaq: DUOT), a leading provider of adaptive, modular, and scalable Edge Data Center solutions, reported financial results for the second quarter (“Q2 2026”) ended June 30, 2026. Second Quarter 2026 and Recent Operational Highlights Signed five-year, 55 MW hosting agreements with Axe Compute valued at more than $500 million, representing a significant commercial milestone in the Company’s strategy to develop and operate high-density AI infrastructure Entered into an exclusive term sheet with 0Lat LLC for a proposed structured lease across a 15-site, 225-cabinet Edge Data Center portfolio in Texas and Georgia, initiating a 90-day exclusivity and confirmatory diligence period Completed the sale of the Company’s wholly owned rail technology subsidiary, Duos Technologies, Inc. The divestiture marks the completion of a broader strategic repositioning and enables the Company to fully concentrate its resources on its Edge Data Center and AI infrastructure businesses through Duos Edge AI, Inc. and Duos Technology Solutions, Inc. Secured $111 million in contracted revenue with an investment-grade hyperscaler to provide 10 MW of critical IT-load capacity for five years at its Columbus, Georgia data center campus The Company now has 25 MW contracted with all 25 MW planned for deployment in 2026, demonstrating accelerating demand and an ability to rapidly design, manufacture, and deploy modular infrastructure in underserved Tier 3 and Tier 4 markets Received $50.4 million in proceeds from the sale of substantially all the assets of New APR Energy, LLC, in which the Company held a 5% minority stake of the parent company Closed $55 million registered direct offering with a single large institutional investor, providing additional financial support for the Company’s growth plans, including the acquisition of its Columbus facility and related infrastructure investments to fulfill contracted customer deployments and expand the campus Hosted six (6) open houses with additional events and grand openings planned, showcasing the continued expansion of the Company’s EDC pipeline to support increasing demand for AI inference, training, and high-performance computing workloads Added to the Russell 2000® Index as part of the 2026 Russell indexes annual reconstitution Second Quarter 2026 Financial ResultsIt should be noted that the following Financial Results represent the consolidation of the Company with its subsidiaries Duos Edge AI, Inc., Duos Technology Solutions, Inc. and Duos Energy Corporation (“Duos Energy”). Total revenues for Q2 2026 increased 30% to $6.18 million compared to $4.77 million in the second quarter of 2025 (“Q2 2025”). Total revenue for Q2 2026 represents an aggregate of approximately $3.23 million of Technology Solutions revenue, $2.91 million of Services and Consulting revenue, and approximately $.03 million of Hosting revenue. The increase in revenue was driven primarily by the increase in Technology Solutions revenue, which was partially offset by a decrease in Services and Consulting revenue in connection with the Company’s continued reduction in the scope of services provided under the Duos Energy Asset Management Agreement (the “AMA”) and the sale by New APR of substantially all of its assets in May 2026. The Technology Solutions business unit provides manufacturer-agnostic infrastructure sourcing, integration, and value-added supply chain services supporting data center, AI, and enterprise deployments. The Company expects services revenue from both its hosting and technology solutions to increase throughout 2026. This growth is expected to be driven by the deployment of additional edge data centers coming online as well as expanding Technology Solutions revenue tied to growth in the data center market. Cost of revenues for Q2 2026 decreased 9% to $2.73 million compared to $2.99 million for Q2 2025. The decrease was primarily due to reduced costs associated with the previously mentioned AMA and the wind-down of AMA-related activities. Gross margin for Q2 2026 increased 94% to $3.45 million compared to $1.78 million for Q2 2025. Gross margin improved primarily due to the significantly reduced cost of revenues associated with the AMA and the growing contribution of the Technology Solutions business. Operating expenses for Q2 2026 increased 2% to $3.40 million compared to $3.32 million for Q2 2025. The increase in expenses was attributable to increases in sales and marketing expenses as additional resources were deployed to support business development for the Edge Data Center and Technology Solutions businesses as well as general and administration expenses. Net operating income for Q2 2026 totaled $0.05 million compared to net operating loss of $1.54 million for Q2 2025, our first positive operating quarter as a data center infrastructure company. The decrease in the loss was primarily driven by the favorable impact of increased Technology Solutions revenue, accelerated recognition of the remaining AMA-related deferred revenue, and improved gross margins. Net income before taxes for Q2 2026 totaled $53.64 million compared to net loss of $1.62 million for Q2 2025. The increase in net income was primarily attributable to the gain on sale of investments previously noted in connection with the sale of substantially all of New APR’s assets. Basic and diluted net income per common share was $1.61 and a loss of $0.14 and $1.37 and a loss of $0.14 for the three months ended June 30, 2026 and 2025, respectively. Cash and cash equivalents at June 30, 2026 totaled $112.31 million compared to $15.47 million at December 31, 2025. In addition, the Company had over $15.90 million in receivables and contract assets for a total of approximately $128.21 million in cash and expected short-term liquidity. Six Month 2026 Financial Results Total revenues decreased 4% to $8.32 million from $8.68 million in the same period last year. Total revenue for the first six months of 2026 represents an aggregate of approximately $3.79 million of Technology Solutions revenue, $4.46 million of Services and Consulting revenue, and approximately $.06 million of Hosting revenue. The decrease in total revenues was primarily driven by the previously noted decrease in Services and Consulting revenue in connection with the Company’s continued reduction in the scope of services provided under the AMA and the sale by New APR of substantially all of its assets in May 2026. Cost of revenues decreased 32% to $3.82 million from $5.65 million in the same period last year. The decrease in cost of revenues was primarily due to reduced costs associated with the previously mentioned AMA and the wind-down of AMA-related activities. Gross margin increased 48% to $4.50 million from $3.03 million in the same period last year. Gross margin improved primarily due to the significantly reduced cost of revenues associated with the AMA and the growing contribution of the Technology Solutions business. Operating expenses increased 49% to $7.63 million from $5.11 million in the same period last year. The increase in expenses was largely attributable to increases in sales and marketing expenses as additional resources were deployed to support business development for the Edge Data Center and Technology Solutions businesses as well as general and administration expenses. Net operating loss totaled $3.13 million compared to net operating loss of $2.07 million in the same period last year. The increase in loss from operations was primarily driven by higher operating expenses, offset by growth in Technology Solutions revenue and accelerated recognition of the remaining AMA-related deferred revenue. Net income before taxes totaled $50.60 million compared to net loss of $2.44 million in the same period last year. The increase in net income was primarily attributable to the gain on sale of investments previously noted in connection with the sale of substantially all of New APR’s assets. Basic and diluted net income per common share was $1.70 and a loss of $0.21 and $1.41 and a loss of $0.21 for the six months ended June 30, 2026 and 2025, respectively. Financial OutlookAt the end of the second quarter, the Company’s bookings represented approximately $43.5 million in revenue, of which all is expected to be recognized during the year, including contracted backlog and near-term anticipated awards. In addition, approximately $1.1 million of contracted Technology Solutions deferred revenue recorded in 2025 will be recorded as revenue in 2026, further supporting near-term performance. Duos Technology Solutions continues to add new customers and has approximately $28 million in backlog so far in 2026. Based on these committed contracts and near-term pending orders that are already performing or scheduled to be executed throughout the course of 2026, the Company is reconfirming its expectation for total revenue in 2026 to exceed $50 million. A significant portion of this revenue is anticipated to be recognized in the second half of the year, aligned with project timing and infrastructure deployments, supporting continued operating leverage and progression toward the Company growth strategy. Adjusted EBITDA for the second quarter of 2026 was $0.5 million. The Company did not report adjusted EBITDA in the prior-year period. Adjusted EBITDA was positive for the quarter, and the Company expects profitability to continue to improve as revenue ramps over the coming quarters and anticipates achieving positive adjusted EBITDA for the full year 2026. Management Commentary“In the second quarter and over the last several weeks, we have made tremendous progress both in operational execution and the fundamental repositioning of our business as a standalone AI infrastructure provider,” said Duos CEO Doug Recker. “Financially, we began to see the early stages of the substantial performance ramp we expect to build over the course of this year, highlighted by a 30% increase in revenue and a material improvement in profitability. We also secured over $100 million in growth capital through two major transactions: a $55 million direct investment with a single institutional investor and an additional $50.4 million in proceeds resulting from New APR's sale of substantially all its assets. “Operationally, we recently announced the successful divestiture of our legacy rail operations, which will now enable us to fully concentrate our resources on the Edge Data Center and AI infrastructure businesses. We also agreed to terms on a new $111 million, 10 MW contract with an investment-grade hyperscaler to provide critical IT-load capacity, adding to our already-substantial backlog and supporting our reaffirmed outlook to provide 25 MW of compute and generate north of $50 million in revenue by the end of this year.” Conference CallThe Company’s management will host a conference call on Monday, August 17, 2026, at 4:30 p.m. Eastern Time to discuss these results, followed by a question-and-answer period. If you experience any difficulty accessing the call or wish to submit questions in advance, please contact the Company at [email protected]. An audio replay of the call will also be available in the Investor Relations section of the Company’s website following the event. For additional information about the Company, please visit: www.duostechnologies.com | www.duosedge.ai. About Duos Technologies Group, Inc.Duos Technologies Group, Inc. (Nasdaq: DUOT), based in Jacksonville, Florida, is focused on providing and managing modular data center colocation facilities and infrastructure solutions. Through its wholly owned subsidiaries Duos Edge AI, Inc., and Duos Technology Solutions, Inc., the Company delivers high function computing infrastructure at the “Edge” designed to support high power computing facilities suitable for AI and Enterprise Computing. Duos is strategically focused on scaling its edge data center platforms in conjunction with its data center infrastructure solutions business. It provides manufacturer-agnostic sourcing and fulfillment services to support efficient deployment of data centers and IT environments. Together, these platforms position the Company to address the growing demand for distributed digital infrastructure, while continuing to support legacy applications in Tier 3 and Tier 4 markets. For more information, visit www.duostech.com and www.duosedge.ai. Forward- Looking StatementsThis news release includes forward-looking statements regarding the Company's financial results and estimates and business prospects that involve substantial risks and uncertainties that could cause actual results to differ materially. Forward-looking statements relate to future events and typically address the Company's expected future business and financial performance. The forward-looking statements in this news release relate to, among other things, information regarding anticipated timing for the installation, development and delivery dates of our systems; anticipated entry into additional contracts; anticipated effects of macro-economic factors (including effects relating to supply chain disruptions and inflation); timing with respect to revenue recognition; trends in the rate at which our costs increase relative to increases in our revenue; anticipated reductions in costs due to changes in the Company's organizational structure; potential increases in revenue, including increases in recurring revenue; potential changes in gross margin (including the timing thereof); statements regarding our backlog and potential revenues deriving therefrom; and statements about future profitability and potential growth of the Company. Words such as "believe," "expect," "anticipate," "should," "plan," "aim," "will," "may," "should," "could," "intend," "estimate," "project," "forecast," "target," "potential" and other words and terms of similar meaning, typically identify such forward-looking statements. Forward-looking statements involve risks and uncertainties and there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, the Company's ability to generate sufficient cash to expand operations, the competitive environment generally and in the Company's specific market areas, changes in technology, the availability of and the terms of financing, changes in costs and availability of goods and services, economic conditions in general and in the Company's specific market areas, changes in federal, state and/or local government laws and regulations potentially affecting the use of the Company's technology, changes in operating strategy or development plans and the ability to attract and retain qualified personnel. The Company cautions that the foregoing list of risks, uncertainties and factors is not exclusive. Additional information concerning these and other risk factors is contained in the Company's most recently filed Annual Reports on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other filings filed by the Company with the U.S. Securities and Exchange Commission (the "SEC"), which are available at the SEC's website, http://www.sec.gov. The Company believes its plans, intentions and expectations reflected in or suggested by these forward-looking statements are based on reasonable assumptions. No assurance, however, can be given that the Company will achieve or realize these plans, intentions or expectations. Indeed, it is likely that some of the Company's assumptions may prove to be incorrect. The Company's actual results and financial position may vary from those projected or implied in the forward-looking statements and the variances may be material. Each forward-looking statement speaks only as of the date of the particular statement. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any forward-looking statement is based, except as required by law. All subsequent written and oral forward-looking statements concerning the Company or other matters attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. ContactsInvestor RelationsTom Colton and Greg BradburyGateway Group, Inc.+1 949-574-3860 | [email protected] Source: Duos Technologies Group, Inc Released August 17, 2026 Note: This article has been published automatically by sourcing from Access Newswire. The Stocktwits editorial team did not edit this article. Stocktwits PR Desk has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: Why Did EYPT, STLA, ENVX Stocks Plunge To 52-Week Lows Today? CVX Stock Rises Overnight: Chevron Says It Has Discovered Oil, Gas Condensate Offshore In Angola NKE Vs LULU: Retail Traders See A Bigger Comeback Opportunity In One Stock

Revenue Grew More Than 90x Sequentially from Q1 2026 in the First Full Quarter of Compute Operations More Than $2.8 Billion in New Contracts Signed, Bringing 2026 Signed Contracted Value to More Than $3 Billion and Expected Annualized Run Rate to More Than $696M upon Full Deployment PITTSBURGH, Aug. 14, 2026 (GLOBE NEWSWIRE) -- Axe Compute Inc. (NASDAQ: AGPU), a neocloud AI infrastructure platform delivering dedicated enterprise GPU compute capacity at global scale, today reported financial results for the second quarter ended June 30, 2026. "In less than eight months, we have gone from our first revenue-generating compute contract to more than $3 billion in signed contract value. We continue to be confident that we can deliver an additional $2 billion in signed contracts before the end of the year,” said Christopher Miglino, Chief Executive Officer of Axe Compute “As these contracts go live, they provide multi-year recurring revenue that strengthens our balance sheet quarter after quarter. Our focus for the second half is delivery, and winning the next contracts as we do it," added Miglino. SECOND QUARTER 2026 AND RECENT DEVELOPMENTS AT A GLANCE Revenue of $3.2 million, the first full quarter of revenue from compute services, entirely contributed by the Axe Compute Access service delivery model; Axe Compute Build contract revenue is not yet recognized and begins at go-live. Net loss of $17.2 million, driven by a non-cash $13.1 million loss on digital assets, primarily reflecting changes in digital asset holdings and related receivables. Adjusted EBITDA1 of approximately ($4.9 million), with approximately ($0.9 million) attributable to the legacy Drug Discovery Services (Helomics) segment. Cash of $21.9 million at quarter-end, up from $6.9 million at March 31, 2026. Customer prepayments of $60.8 million and net cash provided by operating activities of $17.4 million for the first half of 2026. More than $3 billion in 2026 total contract value (“TCV”)2, including more than $2.8 billion in contracts signed in July under the Axe Compute Build model that were converted from the second quarter pipeline. Q2 2026 AND RECENT BUSINESS HIGHLIGHTS More Than $2.8 Billion in New Contracts Signed (July 2026): Subsequent to quarter-end, the Company secured three new customer contracts across the United States and Europe with a TCV of more than $2.8 billion, all under the Axe Compute Build model. Together with the $260 million contract signed in April, the Company's 2026 TCV now exceeds $3 billion, surpassing the $1 billion goal for new customer agreements announced in May 2026. The Company’s annualized run rate (“ARR”)3 is expected to reach more than $696M upon full deployment. $260 Million Cluster In Build, Targeted for Q3 2026 Go-Live: The dedicated cluster of 2,304 NVIDIA B300 GPUs under the Company's 36-month take-or-pay contract announced in April progressed through build during the quarter. Deployment remains targeted for Q3 2026. Once live, the contract represents approximately $21 million per quarter in recognizable revenue over the 36-month service term. Contract Liabilities Grew to $60.8 Million: Contract liabilities, representing customer prepayments that are generally non-cancellable and non-refundable and are received ahead of revenue recognition, grew from $0.8 million at March 31, 2026 to $60.8 million at June 30, 2026. Customer prepayments fund infrastructure ahead of deployment, a central feature of the Company's capital-efficient operating model. SECOND QUARTER 2026 FINANCIAL HIGHLIGHTS Revenue: $3.2 million in Q2 2026, up from $35 thousand in Q1 2026 and compared to $3 thousand in Q2 2025, before the Company began providing compute services. Compute Services contributed $3.2 million, the segment's first full quarter of recognized revenue, reflecting contracts delivered through the Axe Compute Access model. Revenue from the Company's Build contracts is not yet reflected in reported results; recognition begins at go-live of the contracted clusters. The current period's margin profile reflects the Access model only and does not reflect the economics of the Build business, and the revenue mix and economics of the Company are expected to change materially as Build deployments come online. Net Loss: $17.2 million for Q2 2026, or $0.87 per share. The reported net loss was driven primarily by $13.1 million in losses on digital assets in the quarter ($17.4 million year to date). These represent primarily non-cash fair-value changes on the Company's ATH digital asset holdings and related receivable and derivative positions, which under US GAAP are measured at each reporting date. Management believes the reported net loss does not reflect the operating performance or cash usage of the business. Adjusted EBITDA: ($4.9 million), excluding $11.8 million of unrealized losses on digital assets, $0.6 million of stock-based compensation, and less than $0.1 million of combined depreciation, amortization, and net interest income; approximately ($0.9 million) was attributable to the legacy Drug Discovery Services segment. Cash and Digital Assets: Cash and cash equivalents grew to $21.9 million at June 30, 2026, up from $10.8 million at December 31, 2025 and $6.9 million at March 31, 2026. The Company also held $11.3 million in digital assets, primarily Aethir (“ATH”), and $10.3 million in digital asset receivables at June 30, 2026 for a total of $21.6 in digital assets. Positive Operating Cash Flow: Net cash provided by operating activities of continuing operations was $17.4 million for the six months ended June 30, 2026, compared to net cash used of $4.3 million in the prior-year period, driven primarily by customer prepayments under Compute Services contracts. OUTLOOK The Company does not provide formal financial guidance. The following forward-looking context is provided to assist investors in understanding management's operational priorities, and is subject to the risks and uncertainties described under "Cautionary Statement Regarding Forward-Looking Statements" below. Management's operational priorities for the balance of 2026 include: (i) completing the build and achieving go-live of the $260 million dedicated GPU cluster, targeted for Q3 2026, and commencing recognition of approximately $21 million per quarter in revenue under that contract upon deployment; (ii) executing against the more than $2.8 billion in contracts signed in July 2026, including facility readiness, equipment procurement, and deployment planning across the United States and Europe; (iii) continuing to expand the enterprise sales team and convert the Company's pipeline; and (iv) completing the strategic alternatives process for the legacy Drug Discovery Services business. CONFERENCE CALL AND WEBCAST Management will host a conference call and webcast to discuss the Company's second quarter 2026 results on Monday, August 17, 2026 at 8:30 a.m. Eastern Time. Participants may join by dialing +1 720 707 2699 (Meeting ID: 867 5256 5005, Passcode: 279379) or via live webcast at https://bit.ly/AxeComputeQ22026. A replay of the webcast will be available on the Company's investor relations website at investors.axecompute.com following the call. ABOUT AXE COMPUTE Axe Compute Inc. (NASDAQ: AGPU) is a neocloud AI infrastructure platform built on a fundamental premise: AI innovation should not be constrained by hardware choice or availability. The company provides enterprises and AI innovators with flexibility across hardware, geography, and deployment models through two core offerings: Axe Compute Access, delivering a wide range of the latest high-performance GPU infrastructure across global locations, and Axe Compute Build, enabling the design, deployment, ownership, and operation of large-scale, dedicated AI infrastructure worldwide. All solutions are supported by enterprise-grade SLAs and operational expertise. Axe Compute is headquartered in Pittsburgh, Pennsylvania. For more information, visit axecompute.com. INVESTOR CONTACT Erin McMahon, CMO and Head of Investor Relations [email protected] | investors.axecompute.com MEDIA CONTACT Erin McMahon, CMO and Head of Investor Relations [email protected] CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as well as Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements regarding the deployment timeline and revenue expectations for the $260 million enterprise contract, the execution and deployment of the contracts signed in July 2026, the Company's commercial strategy and pipeline, the expected evolution of the Company's revenue mix and economics as Build contracts come online, the expected annualized run rate in future periods, the strategic alternatives process for the Drug Discovery Services segment, the Company's liquidity and capital resources, and the market opportunity for GPU compute infrastructure. These statements are based on management's current expectations and beliefs as of the date of this release and are subject to significant risks and uncertainties that could cause actual results to differ materially, including but not limited to: risks related to the execution, enforceability, and customer performance under the Company's contracts, including the $260 million contract and the contracts signed in July 2026; hardware supply chain constraints and facility readiness; the highly volatile and unpredictable price of ATH and digital assets generally; the Company's ability to generate and grow Compute Services revenue; risks associated with the Aethir network and decentralized physical infrastructure; the Company's ability to maintain Nasdaq listing compliance; risks related to the strategic alternatives process for the Drug Discovery Services business; and those risks and uncertainties described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on March 31, 2026, and in the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2026. The Company undertakes no obligation to update or revise any forward-looking statements, except as required by applicable law. NON-GAAP FINANCIAL MEASURES This press release includes “Adjusted EBITDA,” which is a non-GAAP financial measure. The Company defines Adjusted EBITDA as net income (loss) adjusted to exclude: (i) interest expense (income), net; (ii) income tax expense (benefit); (iii) depreciation and amortization; (iv) stock-based compensation expense; and (v) unrealized (gains) losses on digital assets. Unrealized (gains) losses on digital assets represent mark-to-market, fair value adjustments related to digital assets and digital asset receivables, and do not include realized gains and losses on digital assets, including from ATH used to pay for compute the Company then sells to customers. Adjusted EBITDA is not a substitute for net income (loss) or any other measure of financial performance prepared in accordance with U.S. GAAP and may not be comparable to similarly titled measures used by other companies. Management believes Adjusted EBITDA is useful to investors because it provides a supplemental measure of the Company’s core operating performance by excluding the effects of capital structure decisions (such as interest expense), non-cash charges (such as depreciation, amortization and stock-based compensation), unrealized fair value adjustments (such as changes in volatile market price of digital asset holdings) and tax impacts that can vary significantly between periods and across companies. Management uses Adjusted EBITDA to evaluate the Company’s performance, compare performance across periods, and assist in the allocation of resources. Investors are cautioned that Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of the Company’s results as reported under U.S. GAAP. A reconciliation of Adjusted EBITDA to the most directly comparable U.S. GAAP financial measure is included in the tables accompanying this press release. To the extent the Company provides forward-looking Adjusted EBITDA guidance in connection with this release or the related earnings call, a reconciliation of such forward-looking non-GAAP measure to the most directly comparable U.S. GAAP measure may not be available without unreasonable effort due to the inherent difficulty in forecasting and quantifying certain amounts, including but not limited to fair value adjustments on digital asset holdings, stock-based compensation expense, and other non-cash or non-recurring items, the timing and magnitude of which may be significant. FINANCIAL STATEMENTSSUMMARY CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited) SUMMARY STATEMENTS OF NET LOSS(Unaudited) RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA(Unaudited) SUMMARY STATEMENTS OF CASH FLOWS(Unaudited) ______________________________1 Adjusted EBITDA is a non-GAAP financial measure. See “Non-GAAP Financial Measures” and reconciliation tables.2 Total contract value is an operating metric representing the aggregate estimated contractual spend under signed customer contracts, and may not represent revenue recognized in any particular period as separately determined in accordance with US GAAP.3 Annualized run rate is an operating metric representing annualized monthly revenue upon full deployment of signed contracts. Annualized run rate is an estimate and does not represent revenue recognized in a particular period as separately determined in accordance with US GAAP.

Image source: The Motley Fool. May 18, 2026 Chief Executive Officer — Christopher Miglino Chief Financial Officer (outgoing) — Joshua Blacher Chief Financial Officer (incoming) — Jeremy Yaukey-Witter President — Kyle Okamoto Christopher Miglino: Thank you, Erin. Good morning, and thanks for joining us. I'm Chris Miglino, the CEO of Axe Compute. With me today are Josh Blacher, our outgoing Chief Financial Officer; and Jeremy Yaukey-Witter, our incoming CFO; and Kyle Okamoto, our President. Today we're presenting our Q1 2026 earnings. We appreciate you taking the time to hear about the company. I realize that a lot of you may be new to our story. So today, I want to tell you 3 things: what we do, why it works and where we're going. Enterprises have been told to work with the constraints of whatever compute data centers happen to have available: on their timeline, at their price, in their location. If you want GPUs, they tell you to get in line, 36 to 52-week wait list, and you have to take the region that the data center offers. You have to take the architecture they support. They want the off-takers, the renters of that equipment, to configure their business around what they can give you. That's the compromises that enterprises have been making in AI compute. So we see it differently. We're partnering with businesses to build on their terms. Three things make that real. Choice. So any kind of GPU, any location, any configuration match to the workload that the company needs. And we are seeing customers wanting all kinds of GPUs, not just the latest GPUs that are out there. There is a gamut of customers that want stuff that has been out there for years. Enterprise. We handle sourcing, matching, logistics, so our customers build around their businesses. And then we have global reach. So our supply team is engaged with talking to data centers globally, that allows us to deliver inventory that might be available very quickly, and then other customers that may want to build custom build-outs at these different centers all over the globe. So we're experts at going out and finding the power that's necessary that is available for the off-takers to do what they need to do. The time lines at the bottom shows how fast we've executed on our plan. At the end of September, we launched the Strategic Compute Reserve, enabling Axe to own tokens to buy compute. The best way to understand this is the same way consumers and teams could use tokens to engage with OpenAI and Claude, we use our tokens to buy bare metal compute. That turns into cash for the company. That's why investors should view our compute reserve as additional cash. While it's not technically viewed that way from a GAAP perspective, we can turn those tokens into cash as needed and relatively quickly. We then rebranded and listed as AGPU on NASDAQ in December. In February, I started as the CEO. Even though it's new, role as a CEO, I've been involved in structuring this entire transaction with the legacy public company, and helping negotiate the terms with the legacy company and helping do the raise for the initial creation of the compute reserve. So I'm well aware and I was up to speed on the company. In February, we then closed $12 million in compute transactions. And then we closed a $260 million landmark deal in April. We've assembled an amazing team that sells to off-takers, the people who rent the compute, and the team that sells to the data centers. I couldn't be happier with the team that we've assembled right now. Everything is working out great with the team. So let me tell you a little bit about this large transaction we did, because I know that we announced the transaction in a press release, but we've never talked about it. First off, it's the largest contract that the company has done in our history, albeit that we got going here since February of this year, but this is a foreshadowing of what we think is going to be the future for the company. But the contract is a 36-month agreement for 2,304 NVIDIA B300s at 4.8 megawatts of dedicated N+1 redundant power in a U.S. Tier 3 data center. The targeted deployment is Q3 of 2026. So this is all in progress right now. The customer pays monthly in advance regardless of their utilization on a committed basis. There's -- obviously, the power and the redundancy is there inside the data center. We signed and announced this deal at the end of April, but the build is actively underway. The machines have been ordered, the power has been allocated, the hardware is being deployed. The first financial installment is expected to be received this month, and it's very substantial. The revenue recognition for this transaction when the cluster goes live translates to around $21 million per quarter in revenue. That's done. That's once this thing gets installed, we'll be seeing $21 million every 3 months. So if it launches in month 2 of the next quarter, we'll recognize 2/3 of that. But $21 million per quarter going forward for the next 36 months. We think that this model is what's going to drive value for Axe and our cash flow and equity value. So let me show you a little bit about how that works. I want you to understand why enterprises choose Axe to partner with. The customer begins with their workload size and regional location requirements to us. They bring them to us. Axe then does 3 things. We match the right GPUs, the right data center location, and all the supporting infrastructure: networking, power, rack, NVIDIA Reference Architecture and so on. Then we help arrange the financing of the build-out. In some cases, there's SPVs that are created. In others, we fully participate in the equity and the debt in the transaction. The consumers pay monthly in advance, usually with a 15% to 30% prepayment upfront, and the balance billed monthly in advance. And at the end of it all, Axe owns the hardware that we provided the equity for. The equipment sits on our balance sheet as a hard asset. When the customer's term ends, we are then able to redeploy that equipment to the next customer. So we're able to utilize the capital to finance the equipment. Think of it the way institutional investors think about data center real estate buildings. They amortize them over 30 years. We're doing the same with GPU clusters over 3, sometimes 5. Every deal we close builds asset value on the balance sheet, not just cash flow. Even though these transactions are cash flow positive, they're eating down the debt that we put on to the equipment that we put in place when we deploy the clusters. As we grow, we can be seen as a virtual data center owner, that doesn't own the buildings, but we own the equipment globally. We've seen there is still strong demand for NVIDIA chips that came out 3 years ago. In fact, some older chips are being rented out now for more than they had 2 years ago. So the value of these chips that are amortizing off over the next 3 years will be significant at the end of that time frame, is our prediction. So with that said, I'll now hand the call over to Josh Blacher, our outgoing CFO. Josh has been an important part of the company's journey. I'd like to thank Josh, who has acted as a fractional CFO for the company for some time now. The company is at a point where we're ready for a full-time, dedicated CFO. And while we'll miss Josh and appreciate his contribution, we're excited to welcome Jeremy as the new CFO of the company. Josh? Joshua Blacher: Thank you, Chris. I've had the pleasure of serving the company as Chief Financial Officer since September 2023. As previously announced, this will be my last earnings call as I transition out of this role. I'm excited to introduce my successor, Jeremy Yaukey-Witter. Jeremy, congratulations on this new role. The company is in excellent hands. Jeremy will walk you through the financials for our first quarter ended March 31, 2026. Jeremy? Jeremy Yaukey-Witter: Thank you, Josh. I'd first like to take the opportunity to thank Josh for his service to the company. We appreciate the foundation he's helped establish and which I'm excited to build on. And to everyone listening, it's a pleasure to join you today. I started with the company 3 years ago and previously served as the company's Controller. The foundation of my career was built at KPMG, where I provided audit and attestation services to publicly traded and private companies across various industries, including technology and energy. I've been along for each step of our strategic transition, and I'm thrilled about the direction in which the company is headed. Before I go through the numbers for our first quarter ended March 31, 2026, I want to frame what you're looking at in our filings. Because our financial statements for the first quarter reflect the transitional state of our business at that time with 2 different segments, at very different stages, they also contain certain noncash items that I want to make sure are clearly understood. Looking at our income statement. Our reported net loss for Q1 2026 was $7.7 million. I want to explain that number upfront because much of it is noncash in nature and driven by accounting rules that require us to mark our digital asset holdings to market every quarter. Specifically, we recorded $4.3 million in losses on digital assets during the quarter. Under U.S. GAAP, our Aethir token holdings are carried at fair value at each reporting date, with changes flowing through the income statement. The price of the Aethir token declined during the first quarter, which resulted in a $4.3 million noncash mark-to-market loss on our token holdings. Setting aside that digital asset fair value adjustment, our underlying operating loss was approximately $3.4 million, reflecting our operating cost structure as we continue to transition the business to focus on our Compute Services segment. Total revenue for Q1 2026 was $35,000, compared to $110,000 in Q1 2025. The year-over-year decrease reflects reduced sales in our legacy Drug Discovery Services business, which remains in continuing operations as we evaluate strategic alternatives. Our Compute Services segment contributed minimal revenue in Q1 2026 related to just a handful of compute contracts that commenced at the end of March. In line with U.S. GAAP, we recognize revenue on our compute contracts ratably over the service period. Our contract liabilities, representing customer prepayments received ahead of revenue recognition, increased from $144,000 at December 31, 2025, to $786,000 at March 31, 2026. Approximately $650,000 of that balance was related to Compute Services and represents contracted revenue that will be recognized as compute services are provided in subsequent periods. Total operating costs and expenses were $3.5 million in Q1 2026, compared to $2.4 million in Q1 2025. Q1 2026 expenses were primarily driven by general and administrative expenses of $2.9 million, up approximately $1.1 million from Q1 2025. The primary driver was a onetime recognition of severance expense to our former CEO following his departure at February and the Board's appointment of Chris to the CEO role, along with other personnel related costs. On a per share basis, the net loss was $0.36 per share based on a weighted average share count of approximately 21.2 million shares. In accordance with U.S. GAAP, that weighted average share count included the 14.7 million prefunded warrants, which remained outstanding as of March 31, 2026, down from the 16.8 million prefunded warrants that were originally issued pursuant to our October 2025 private placements. We'll now turn to cash flows and the balance sheet. The company's cash and cash equivalents decreased by approximately $3.9 million during the quarter, from $10.8 million at December 31, 2025 to $6.9 million as of March 31, 2026. The decline reflects our operational spending during the quarter. Cash used in operating activities was $3.7 million in Q1 2026, compared to approximately $1 million in Q1 2025. The increase primarily reflects increased cash used in working capital and increased cash operating expenses. Cash used in working capital primarily reflected payments of outstanding accounts payable and accrued expenses. Increased cash operating expenses primarily reflected cash payments for additional professional services resulting from the company's adoption of its treasury strategy in late 2025. The company's cash used in investing and financing activities was insignificant during the first quarter while the company focused on transitioning its operations. Our digital asset holdings had a fair value of $20.2 million as of March 31, 2026. That compares to $24.4 million at December 31, 2025. The decrease primarily reflects the mark-to-market adjustment I described earlier, directly tied to the decrease in the market price of the Aethir token during Q1. Our digital asset receivable had a fair value of $15.4 million as of March 31, 2026, representing our contractual right to receive additional Aethir tokens in future periods pursuant to time-based vesting conditions, also referred to as locked Aethir tokens. These locked tokens vest on a predictable schedule through December 2028. Of that total, $9.4 million was classified as current, representing tokens expected to vest and be claimed within the next 12 months, and $5.9 million was classified as noncurrent. Something I'd like to once again draw your attention to is the company's accounts receivable and contract liabilities balances, which you'll see each jumped by more than $600,000 from December 31 to March 31. This jump reflects billings for noncancelable and nonrefundable monthly prepayments due from our compute customers. These billings reflect the traction that the company saw at the end of the first quarter as we began successfully closing contracts with customers. Total assets as of March 31, 2026 were $45.2 million, compared to $52.9 million at December 31, 2025. Total liabilities were $5 million, and total stockholders' equity was $40.3 million, down from $47.7 million at the prior year-end, with the change driven primarily by the $7.7 million net loss for the quarter. I'll now turn the call over to Kyle Okamoto, our President, to discuss our business efforts. Kyle Okamoto: Thanks, Jeremy. Six weeks into the job now and I will say that I am even more fired up and excited about this market and this company's future. So today, I'm going to cover 3 things. One is how our business model has evolved to support our customers. Second is the Axe build delivery model in depth. And then the third is our pipeline, where the numbers are powerful to say the least, and I think they tell a very compelling story of where this business is going. All right. So the first is how customers grow with Axe. We really have 2 tracks for engaging with customers. The access available-now compute and we will build out a dedicated cluster, right? So path one and path two. Most customers enter through Axe Compute's immediate access inventory. It's fast, they leverage our existing compute network, they can start in as little as 24 to 48 hours. These clients come to Axe Compute because they have an immediate need and they can't find what they need through traditional hyperscalers or even other neoclouds. The triggers are very consistent. It's not just wait lists of 36 to 52 weeks. It's also the type of inventory they can't find elsewhere, the locations that they need to meet their own customer expectations, like data sovereignty and inference performance. And of course, the pricing transparency that all clients in this world should expect. And then the level of service that they ultimately deserve. Track two is our build program, that Chris talked about with the $260 million landmark deal. These customers are looking for large and dedicated infrastructure coverage in a specific footprint. They want to partner for the entire build-out, both technically and financially. They come to us for our expertise and ability to find the space and power, finance and source the chips and other equipment, manage the build-out and operations end-to-end. These engagements are typically 3 or 5 years, with cost efficiency as a priority, and of course, enterprise-grade SLA requirements throughout. Across both of these tracks or paths, customers value the same things, right? They want choice. They want to be able to get what they want when they want it and how they want it. They need expertise and support. And ultimately, global reach, because the world is a very flat place nowadays and you need to be where your customers are, you need to support data sovereignty, and you ultimately need to have very high-performance requirements. And the fourth is really our service. So our job is to make sure that regardless of how clients want to engage, clients never have to go anywhere else, whether they stay on track one or move to track two, the experience, the support and the relationship are seamless. Now let me walk you through what it actually means for Axe Compute to deliver a large cluster like the $260 million deal. Because some may question, why would somebody choose Axe Compute for something this big? The answer is that we have a full infrastructure partner relationship. We are not a vendor here. And here's what it really looks like across these 6 steps. From an architecture perspective, we design the full solution with their needs at the center. That could be what type of GPUs, what type of CPUs, what type of onboard storage, high-speed shared storage, what network fabric choices, private and public networking, power and cooling, rack layouts, ancillary services, take Kubernetes or Slurm as an example. It's really all in the aim to build the true AI factory for our clients. The customers tell us what they need and we figure out how to get the job done. Second is financing and procuring. So Axe funds the build. We source the hardware, NVIDIA B300s, Grace Blackwell GB300s, whatever the job requires. We deal with orchestrating lead times on various components, all with transparency so clients know what they want to know throughout the process. The customers do not have to bring their own CapEx and we're providing this on an OpEx model. We, of course, secure data center space and power in the right location, making sure that we have right of first refusal to support expansions for our customers, making sure that we provide N+1 redundancy to support enterprise-grade SLAs or higher, really all match the data sovereignty and performance requirements. And then, of course, we've got to build, deliver and support, which is happening now. So we install, test, hand over, provide response times, resolution times, SLA, ticketing system, integrations, et cetera, of course, using NVIDIA Reference Architecture. And we make sure that the client is very much involved in that process from the get-go. Another unique point of Axe Compute is that we offer an upgrade path. So customers can move to the latest GPU architecture during the term. So we don't want to lock them in on an older GPU generation and not allow them to move to the latest and greatest, to keep up with the market innovation and growth, with, of course, Axe Compute supporting that growth. And at the end of the day, Axe Compute then owns the hardware, right? At the end of an Axe build, the equipment is on our balance sheet as a hard asset. We own it, we can redeploy it, we can provide GPUs as a service to different clients. Every deal builds that asset base. And that last point is really what makes this business model attractive beyond just positive cash flows, right? It's repeatable and it compounds. Now let me talk about the pipeline. Before I show you the pipeline -- anyways, let me set the market context here, right, because these numbers matter. We're operating in a market that people like McKinsey and Gartner estimate has already crossed $1 trillion in AI compute in 2026. That's with a T, trillion. And it's growing at a 30-plus percent CAGR through 2034. Total data center CapEx is projected to be over $6.7 trillion through 2030, from McKinsey. So obviously, the demand is there, and it's showing no signs of slowing down. It's quite the opposite actually. So now here's what that demand looks like in our pipeline after just a few months of operating, as Chris mentioned, really since starting this business earlier this year. And of course, after closing our first large Axe build deal in my first 3 weeks at the company, that obviously accelerates quite a bit on the pipeline, right? And I want to be clear here, this -- a pipeline is a pipeline, right? These are qualified prospects, not signed contracts. Not all of them will close. We share this because we believe it's material context for understanding the opportunity in front of us, not as a forward-looking commitment to any specific revenue outcome, right? This is a sampling of, I think, there's 45 prospects in this more advanced pipeline stage. That's representing about over 36,000 GPUs. Of that mix of GPUs, 72%, so about 26,000 GPUs, are Blackwell requests, Blackwell, Grace Blackwell, B200, B300, GB200s, GB300s, et cetera. And that really shows that our clients want the most powerful compute in the world right now for their cutting-edge use cases and innovations that are ultimately reshaping and touching every aspect of the world. And this is a pipeline, total contract value across these qualified deals of over $4.3 billion. What's interesting here is that the commitment length mix is very telling. The majority of these deals trend toward 36 and 60-month commitments. Customers understand that it's very important to secure critical AI infrastructure to power their businesses, and they are willing to commit to that to ensure that they have a secure and steady supply of compute to power their businesses. These are not spot requests for a few hours or a few days. Enterprises are making these long-term infrastructure decisions and looking for a true partner. So the bottom line here, if we close, let's say, 3 or 4 of these deals this year, that's hundreds of millions of dollars in incremental contracted revenue on top of the $260 million already signed. So we're quite excited, and that's definitely one of our key focuses. So with that, I will hand it back to Chris for closing remarks. Christopher Miglino: Thanks, Kyle. Kyle and the team have been doing an amazing job. We're setting the foundation for long-term success at the company. We're at the right place at the right time more so than anything I've ever seen in my career. The deals we're making now will make the company for years to come. I think that the transactions that will get done this year will provide revenue that will be substantial over the next 3 to 5 years. And we don't see that slowing down at all. So our approach is it's scaling fast. We're not the data center, but we're the company that builds and owns what's inside the data center. I know we've covered this point a lot, but the first deal that we've done has opened a floodgate of opportunities for us. In addition to the $21 million a quarter that particular transaction will bring, it's led to a pipeline of over $4.3 billion, if you missed that in what Kyle said earlier. I've publicly said that I believe that we close around $1 billion in transactions this year. And seeing the pipeline numbers that are with the team, I'm very confident that will happen. So off-takers, the people that rent the equipment, like our model and they want to work with us. And the most important part is building asset value. It's the part that matters the most for investors thinking about long-term value. Our 2 tracks add meaningful revenue assets to our balance sheet. With Axe build, every cluster we deploy adds owned AI infrastructure to our balance sheet, assets that amortize over the term and redeploy to the next customers. We're not just generating cash flow, we're building the company with a strong foundation for the future. So with that said, I want to thank you for your time and your consideration and interest in Axe Compute. I think that, obviously, the numbers that are reflected in this first quarter are not representative of the business itself, and you'll start to see that kick in the second and third quarters of this year when the model that we've put in place truly starts to reflect to the income statement cash flow and to the balance sheet. So thanks for being with us here today, and we appreciate your time. Before you buy stock in Axe Compute, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Axe Compute wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $472,852!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,317,207!* Now, it’s worth noting Stock Advisor’s total average return is 984% — a market-crushing outperformance compared to 210% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 27, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Axe Compute AGPU Q1 2026 Earnings Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: May 18, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Axe Compute Inc (NASDAQ:AGPU) closed a landmark $260 million deal, the largest in the company's history, which is expected to generate $21 million per quarter in revenue over the next 36 months. The company has developed a flexible business model that allows enterprises to choose any GPU, location, and configuration, catering to diverse customer needs. Axe Compute Inc (NASDAQ:AGPU) has a strong pipeline with over $4.3 billion in potential contract value, indicating significant future growth opportunities. The company successfully transitioned to a new CEO and CFO, with the new leadership team bringing extensive experience and a strategic vision for growth. Axe Compute Inc (NASDAQ:AGPU) has established a global reach, engaging with data centers worldwide to deliver inventory quickly and efficiently. The company reported a net loss of $7.7 million for Q1 2026, with a significant portion attributed to noncash losses on digital assets. Total revenue for Q1 2026 was only $35,000, a decrease from $110,000 in Q1 2025, reflecting reduced sales in the legacy Drug Discovery Services business. Operating costs and expenses increased to $3.5 million in Q1 2026, up from $2.4 million in Q1 2025, driven by severance expenses and other personnel-related costs. Cash and cash equivalents decreased by approximately $3.9 million during the quarter, reflecting operational spending and increased cash operating expenses. The company's digital asset holdings decreased in value due to a $4.3 million noncash mark-to-market loss on Aethir token holdings. Warning! GuruFocus has detected 7 Warning Signs with AGPU. Is AGPU fairly valued? Test your thesis with our free DCF calculator. Q: Can you elaborate on the significance of the $260 million deal and its impact on Axe Compute's future? A: Christopher Miglino, CEO, explained that the $260 million deal is the largest contract in the company's history, marking a significant milestone. It involves a 36-month agreement for 2,304 NVIDIA B300s with 4.8 megawatts of dedicated power. This deal is expected to generate $21 million per quarter in revenue once operational, setting a precedent for future growth and establishing a strong foundation for the company's business model. Q: How does Axe Compute plan to handle the demand for GPUs and data center resources? A: Kyle Okamoto, President, detailed that Axe Compute offers two engagement tracks for customers: immediate access to existing compute resources and custom build-outs for dedicated infrastructure. The company leverages its global network to provide fast access to compute resources and partners with clients for large-scale, dedicated infrastructure projects, ensuring flexibility, expertise, and global reach. Q: What are the financial highlights from Q1 2026, and how do they reflect the company's transition? A: Jeremy Yaukey-Witter, CFO, reported a net loss of $7.7 million for Q1 2026, largely due to noncash losses on digital assets. Revenue was $35,000, reflecting reduced sales in the legacy Drug Discovery Services. The company is transitioning to focus on Compute Services, with contract liabilities increasing significantly, indicating future revenue recognition as services are provided. Q: How does Axe Compute's business model create long-term value for investors? A: Christopher Miglino, CEO, emphasized that the business model focuses on building asset value. Each deployment adds AI infrastructure to the balance sheet, which can be redeployed after contract terms. This approach not only generates cash flow but also builds a strong asset base, providing long-term value and stability for investors. Q: What is the current state of Axe Compute's pipeline, and what does it indicate about future growth? A: Kyle Okamoto, President, revealed a robust pipeline with over 36,000 GPUs and a total contract value exceeding $4.3 billion. The majority of deals involve long-term commitments, reflecting strong demand for AI infrastructure. The company aims to close several deals this year, potentially adding hundreds of millions in contracted revenue, indicating significant growth potential. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus. Release Date: April 01, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Axe Compute Inc (NASDAQ:AGPU) has signed $12 million worth of contracts in the last 30 days, indicating strong commercial traction. The company has added two industry leaders to its board, enhancing its leadership with significant experience in semiconductor innovation and telecommunications. Axe Compute Inc (NASDAQ:AGPU) offers a unique value proposition with its GPU capacity platform, providing choice, speed, and distribution to enterprises. The strategic compute reserve is valued at $43 million, significantly higher than the company's current market cap of $8.6 million. The company has a robust pipeline with over 20 enterprise customers and more than 30 active deployments, showcasing its growing market presence. Axe Compute Inc (NASDAQ:AGPU) reported a net loss of $233.1 million for fiscal year 2025, largely due to non-cash items related to digital assets and derivative instruments. The company's compute services segment did not generate revenue in 2025, as the go-to-market pipeline was still being developed. The ATH tokens, a significant part of the company's assets, are subject to high volatility, which could impact financial stability. The market has not yet priced Axe Compute Inc (NASDAQ:AGPU) as a neocloud with real income and assets, indicating a potential undervaluation. The company's business model relies heavily on the strategic compute reserve and ATH tokens, which may pose risks if market conditions change. Warning! GuruFocus has detected 6 Warning Signs with AGPU. Is AGPU fairly valued? Test your thesis with our free DCF calculator. Q: Can you elaborate on the strategic expansion into AI infrastructure and the rebranding of Axe Compute? A: Christopher Miglino, CEO, explained that in December, Axe Compute initiated a strategic expansion into AI infrastructure and rebranded as Axe Compute on NASDAQ. This move is part of their vision to become a leader in the compute market, offering enterprises choice, speed, and distribution in GPU compute services. Q: How does Axe Compute plan to address the current market demand for GPU compute? A: Christopher Miglino, CEO, highlighted that Axe Compute provides enterprises with choice, speed, and distribution. They offer any GPU, any location, and any configuration matched to specific workloads, with deployment as fast as 24 to 48 hours. Their network spans over 200 global locations, allowing them to meet enterprises where they operate. Q: What is the significance of the $12 million in contracts signed recently? A: Christopher Miglino, CEO, stated that Axe Compute has signed $12 million worth of contracts, translating to an expected monthly contract value of approximately $850,000. This reflects their early commercial traction and the quality of income, as contracts are structured with partial payments in advance to reduce receivable risk. Q: Can you explain the impact of non-cash items on the fiscal year 2025 financial results? A: Joshua Blacher, CFO, explained that the fiscal year 2025 income statement includes two large non-cash items: $152.5 million in losses on digital assets and $52.7 million in losses on derivative instruments. These items significantly affect the reported net loss but do not reflect the underlying operational performance. Q: What are the future projections for AI spending and its impact on Axe Compute? A: Kyle Okamoto, President, mentioned that Gartner projects AI spending will reach $2.5 trillion in 2026, with AI data center spend expected to grow at over 31% annually by 2030. Axe Compute is positioned to capitalize on this growth, as AI workloads are expected to triple in share within data centers by 2030. For the complete transcript of the earnings call, please refer to the full earnings call transcript.