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BRUN
Earnings call · Jun 2026 (Q2 FY26)

Boost Run Q2 FY26 earnings call BRUN

Aug 14, 2026 Source

Executive summary

Boost Run Q2 FY26 — Rapid AI Infrastructure Expansion and Strong Bookings

Boost Run, in its first public earnings call, showcased rapid expansion in AI infrastructure, driven by strong bookings and strategic partnerships. Despite a GAAP net loss primarily due to one-time public listing costs, the company emphasized its capital-efficient model and disciplined execution. Management highlighted its unique position in the AI revolution, leveraging NVIDIA's reference architecture and a growing pipeline to meet surging inference demand.

Highlights

5

  • Q2 revenue was $31.1 million, up approximately 270% year-over-year and 260% from the prior quarter.

  • Signed significant contracts worth approximately $1 billion in Total Contract Value (TCV) in Q2 FY26.

  • Long-term contracted revenue (TCV) stands at $1.9 billion with an average duration of approximately 3 years and an average prepayment of 22%.

  • Expect to exit fiscal 2026 with approximately $400 million of annualized recurring revenue (ARR).

  • Adjusted SG&A was roughly $6.4 million, representing about 20% of revenue, meaningfully below peer group.

Concerns

4

  • Reported a GAAP net loss of $75 million for the quarter, heavily impacted by one-time non-cash items.

  • Recognized a one-time income tax expense of $55.7 million due to transition to a taxable C-corp entity.

  • Included a $7.3 million non-cash stock-based compensation charge for equity awards that vested upon transaction close.

  • Recorded a $1.4 million loss on early debt extinguishment as short-term bridge loans were paid off.

Guidance & targets

CategoryTargetConfidence
Annualized Recurring Revenue (ARR)
approximately $400 million
high materiality
High
Net Cash Flow Margin
15% to 20%
medium materiality
Medium

Orderbook & backlog

Total Contract Value (TCV) signed $1 billion Q2 FY26

Signed significant contracts in Q2.

Total Contract Value (TCV) $1.9 billion Q2 FY26

Long-term contracted revenue with an average duration of approximately 3 years and an average prepayment of 22%.

Dell purchase agreement $1.44 billion Q2 FY26

Essentially fully committed and allocated.

Deals & partnerships

Dell Purchase agreement for compute hardware $1.44 billion

Agreement for compute hardware that is essentially fully committed and allocated.

NVIDIA Cloud Partner and Exemplar Cloud status ongoing

Boost Run is an NVIDIA Cloud Partner and NVIDIA Exemplar Cloud, strictly adhering to NVIDIA's Reference Architecture and collaborating on standardized capacity designs.

Multiple colocation providers Colocation services for data centers

Partnership with multiple providers to align CapEx with expanded footprint, operating 6 data centers with 3 more coming online.

Multiple finance partners Financial relationships for scaling

Strong relationships with multiple finance partners to support growth.

Capital programs

Strategic compute hardware procurement underway $4 billion to $5 billion

Benefit:step change in the scale of this company, anchored by contracted demand and pipeline visibility

In the process of procurement with multiple OEMs (Dell, Lenovo) to monetize power commitments.

Risks & headwinds

GAAP Net Loss due to one-time public listing costs Q2 FY26

$75 million GAAP net loss, including $55.7 million income tax expense, $7.3 million stock-based compensation, and $1.4 million debt extinguishment loss.

Mitigation:These are one-time non-cash adjustments associated with the public listing transaction, and the company expects to achieve a sustainable net cash flow margin of 15% to 20% moving forward.

Unexercised warrants Expiring August 20, 2026

Approximately 4.9 million to 5 million warrants still outstanding.

Mitigation:The company has the right to call unexercised warrants at $0.01, ensuring the situation works in its favor and provides additional liquidity from exercised warrants.

What to watch in Q3 FY26

Progress on $4B-$5B compute hardware procurement

coming months / next quarter
Current In the process of strategic procurement
Target Sharing exciting announcements and further progress

Why it matters

This procurement represents a 'step change in the scale of this company,' crucial for monetizing power commitments and meeting contracted demand.

We are in the process of a strategic procurement of an additional $4 billion to $5 billion of compute hardware with multiple OEMs. Upon completion on the terms we are pursuing, that would be a step change in the scale of this company anchored by contracted demand and pipeline visibility, and it would allow us to monetize the power commitments we can access today. And we look forward to sharing exciting announcements over the coming months, new customer agreements, expanded capacity partnerships and further progress on this procurement.

Q&A highlights

How does Boost Run balance allocating capacity between the higher-margin spot market and longer-term contracts for greater visibility, especially considering financing constraints?

Andrew Karos explained that Boost Run prioritizes risk management by starting with on-demand/spot market contracts and gradually extending to longer durations. He noted that while the spot market offers higher margins, longer contracts provide risk mitigation. He also highlighted that financing for 'on-demand' deals is challenging, requiring initial self-funding, and that the company's debt structure needs to support these various durations.

“So the driving factor is what supply do we have? How much do we want to put on there and then also understanding our paydown of our debt structure as well. I could talk at length about this, but you also have to understand when you get into the financing and you get into the debt structure, a lot of times, you'll hit walls without having proper debt structure because you're not going to see things financed that are "on-demand.”

asked by Gil Luria · answered by Andrew Karos

2 min read 5 chapters

Detailed narrative

AI Infrastructure Market Leadership & Growth

Boost Run, despite its $1.6 billion size, actively competes with companies ten times larger in the AI infrastructure market, leveraging its ability to rapidly deploy capacity and adhere to NVIDIA's reference architecture. The company's pipeline is at an all-time high in terms of project size, number of opportunities, and customer diversity. Management expressed strong conviction in Boost Run's significant role in the AI revolution, driven by customer and partner feedback.

Strategic Capacity Expansion & Procurement

The company currently operates 6 data center locations, with 3 more slated to come online within the next six months, expanding total accessible capacity to 253 megawatts. Boost Run anticipates deploying its full $1.9 billion TCV backlog through fiscal year 2026 and into Q1 2027. A strategic procurement of an additional $4 billion to $5 billion in compute hardware is underway with multiple OEMs, primarily Dell and Lenovo, anchored by existing contracted demand and pipeline visibility.

NVIDIA Partnership and Performance Validation

Boost Run is an NVIDIA Cloud Partner and an NVIDIA Exemplar Cloud, strictly adhering to NVIDIA's Reference Architecture. This status, achieved through rigorous performance testing (FP4, FP8) and a 95% performance guarantee, differentiates Boost Run by ensuring high-quality compute delivery. The company collaborates directly with NVIDIA on standardized capacity designs, providing meaningful visibility into future technologies and exploring large-scale deployments.

Capital-Efficient Business Model & Financing

The company's business model prioritizes capital efficiency by partnering for data centers rather than owning them, thereby avoiding significant real estate investments and multi-year lead times. Projects are financed through a combination of customer prepayments (averaging 22% of TCV), operating cash flow, and balance sheet equity, aiming to generate positive project NOI. The TCV to CapEx ratio has increased to 1.4 and above, reflecting optimized duration and capital deployment.

On-Demand Platform & Deployment Strategy

Boost Run's platform facilitates short-term on-demand contracts, which currently contribute over 12% of its revenue, offering higher pricing and margins. This capability is considered a durable competitive advantage. The company strategically prefers deploying capacity across multiple smaller sites (e.g., four 25-megawatt sites over one 100-megawatt site) to achieve faster, parallel deployment with reduced risk, enabling a multi-billion dollar capacity build-out.

AI-generated summary of the company's earnings call. Not investment advice.