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    DGXX
    Earnings call· Jun 2026(Q2 FY26)

    Digi Power X Q2 FY26 earnings call DGXX

    Aug 14, 2026 Source

    Executive summary

    Digi Power X Q2 FY26 — First AI Revenue and Strong Balance Sheet

    Digi Power X marked a significant turning point in Q2 FY26, recognizing its inaugural AI revenue and achieving positive adjusted EBITDA, driven by the deployment of its initial GPU fleet. The company is strategically transitioning from legacy operations to AI compute and colocation, backed by a substantially strengthened balance sheet and ongoing debt financing discussions to mitigate future dilution. Management remains focused on executing its data center build-out and expanding its GPU-as-a-Service offerings.

    Highlights

    5

    • Recognized first GPU bare-metal rental revenue of $1.1 million in Q2 FY26.

    • Achieved positive Adjusted EBITDA of $3.3 million in Q2 FY26, an increase of $3.2 million compared to Q2 FY25.

    • Cash and cash equivalents increased to $142.4 million as of June 30, 2026, from $1.7 million a year ago.

    • Total assets grew to $279 million as of June 30, 2026, from $37 million a year ago.

    • Phase 1 of the Columbiana AI campus is targeting readiness by December 2026, ahead of schedule.

    Concerns

    3

    • Reported a net loss of $14.4 million for Q2 FY26 due to depreciation and non-cash items.

    • The company utilized ATM capital, with the last draw at $7.25 or $7.50 a share, leading to shareholder dilution.

    • The New York moratorium on data centers prevents expansion of current power footprint, limiting growth in those specific locations.

    Guidance & targets

    7
    CategoryTargetConfidence
    Revenue growth
    over 100% increase
    high materiality
    High
    Columbiana AI Campus Phase 1 readiness
    ready for service
    high materiality
    High
    Columbiana AI Campus Phase 2 readiness
    ready for service
    medium materiality
    High
    GPU-as-a-Service capacity
    10 MW
    high materiality
    Medium
    New York Colocation capacity
    40 to 50 megawatts
    medium materiality
    Medium
    New York GPU-as-a-Service capacity
    8 to 10 megawatts
    medium materiality
    Medium
    North Carolina power capacity
    150 to 200 megawatts
    medium materiality
    Low

    Segment performance

    1
    SegmentRevenueYoYQoQMargin
    GPU Bare-Metal Rental
    Representing the company's first GPU bare-metal rental income from initial fleet of B200 and B300 GPUs deployed at Columbiana, Alabama facility, generated over approximately 5 weeks from late May to end of June.
    		$1.1 million———

    Operational metrics

    12
    Adjusted EBITDA
    $3.3 millionincrease of $3.2 million compared to Q2 FY25
    Q2 FY26

    Positive adjusted EBITDA.

    Cash and investments balance
    $142.4 millionversus $1.7 million a year ago
    as of June 30, 2026

    Strong balance sheet, no long-term debt.

    Working capital
    $131 millionrepresenting a $130 million year-over-year increase from June 30, 2025
    as of June 30, 2026

    Significant increase from basically no working capital a year ago.

    Digital assets holding
    $14.3 million
    as of June 30, 2026
    Net fixed assets and equipment deposits
    $127.5 millionincrease of 447% year-over-year
    as of June 30, 2026

    Reflecting capitalized investment at the Columbiana, Alabama facility.

    Total assets
    $279 millionversus $37 million a year ago
    as of June 30, 2026
    Capital expenditures
    $110 million
    year-to-date

    Deployed towards GPU equipment and data center build-out for the contract with Cerebras in Alabama facility.

    ATM average draw price
    $7.25-$7.50
    early Q2 FY26

    Last ATM draw was at this price range, used to raise capital.

    U.S. Data Center Inc. ownership stake
    48%down from 55%
    current

    Reduced to avoid diverting cash from Digi Power X's core business.

    U.S. Data Center Inc. pre-revenue valuation
    $125 million
    current

    Valuation at which U.S. Data Center Inc. has raised money separately.

    Power usage
    60 MW
    current

    Existing power footprint, grandfathered under moratorium law.

    Power usage
    18 MW
    current

    Existing power footprint, grandfathered under moratorium law.

    Industry KPIs

    3
    MetricValueDetails
    Capacity CAPEX15 MWMW
    Revenue growth$6.6 millionUSD
    Ai product adoption monetization$1.1 millionUSD

    Deals & partnerships

    2
    Omnis Pleasants LLCLetter of Intent (LOI) for land access to electrical infrastructure

    LOI signed with owners of Pleasants Power Station (1.3 GW facility) in West Virginia. Goal is to utilize utility power without being involved in potential liabilities of the power plant.

    CerebrasContract for AI compute and colocation services

    Contract for AI compute and colocation services at the Alabama facility, driving significant capital expenditures.

    Capital programs

    4
    Columbiana, Alabama AI Campus - Phase 1underway

    Benefit: 15 MW

    Equipment purchases complete, long-term equipment being received, ahead of schedule for Cerebras contract.

    Columbiana, Alabama AI Campus - Phase 2underway

    Benefit: 25 MW

    Long-term equipment secured for November/December delivery, on track for completion.

    North Carolina Data Center Developmentplanning

    Benefit: 150-200 MW of power

    Acquired adjacent land, in process with Duke Energy for load studies and permits for a major data center on 40 acres.

    West Virginia Power Access (Omnis Pleasants LLC)LOI signed, in discussion

    Benefit: 100 MW up to 1.3 GW of utility power

    Working to establish growth path by getting land access to electrical infrastructure, avoiding involvement in power plant liabilities of the 1.3 GW Pleasants Power Station.

    Risks & headwinds

    4
    Shareholder dilution from ATM capital raisesEarly Q2 FY26

    Last ATM draw at $7.25-$7.50 per share

    Mitigation: Engaging Goldman Sachs for debt financing to reduce reliance on equity raises; aiming to recoup CapEx and preserve strong balance sheet.

    Inability to expand power footprint in New York due to moratoriumOngoing

    Existing 60 MW in North Tonawanda and 18 MW in Buffalo are grandfathered, but no expansion allowed.

    Mitigation: Utilizing existing grandfathered power capacity to meet 2027 targets of 40-50 MW colocation and 8-10 MW GPU-as-a-Service.

    Net loss due to depreciation and non-cash itemsQ2 FY26

    $14.4 million net loss for Q2 FY26

    Mitigation: Focusing on increasing AI revenues and positive Adjusted EBITDA; pursuing debt financing to support growth.

    Revenue impact from planned wind-down of legacy operationsOngoing transition

    Revenues of $6.6 million reflecting the planned wind down

    Mitigation: Transitioning to AI compute and colocation, with Q3 revenue anticipated to increase over 100% compared to Q2.

    What to watch in Q3 FY26

    4

    Columbiana Phase 1 readiness

    December 2026
    CurrentAhead of schedule, equipment purchases complete
    TargetReady for service

    Why it matters

    Critical for initial AI compute capacity and revenue generation.

    At the Colombiana, Alabama, AI campus, the company is still targeting Phase 1 ready for service in December of 2026

    Q&A highlights

    6

    What are the remaining tasks for delivering the first 15 megawatts to Cerebras for Phase 1?

    Equipment purchases for Phase 1 are complete, and long-term equipment is being received, putting them a few weeks ahead of schedule for December delivery.

    “So basically, we are done with the first 15 megawatts in terms of equipment purchases. All the long-term equipments have been placed and we are starting to receive them this month actually. We are actually few weeks earlier than schedule. So we feel very confident that we will be ready by December for Phase 1.”

    asked by Shareholder · answered by Michel Amar

    2 min read6 chapters

    Detailed Narrative

    01

    Transition to AI Compute and First AI Revenue

    Digi Power X is actively transitioning from legacy operations to AI compute and colocation, evidenced by the planned wind-down of legacy activities and the recognition of its first GPU bare-metal rental revenue of $1.1 million in Q2 FY26. This initial revenue was generated from B200 and B300 GPUs deployed at the Columbiana, Alabama facility over approximately five weeks, marking a substantial turning point for the company.

    02

    Columbiana AI Campus Development Progress

    The company is progressing with its Columbiana, Alabama AI campus, targeting Phase 1 readiness by December 2026 (15 MW) and Phase 2 by the end of Q1 2027 (25 MW). Equipment purchases for both phases are largely complete, with long-term equipment for Phase 1 already being received and Phase 2 equipment secured for November/December delivery, indicating the project is ahead of schedule.

    03

    Strategic Financing and Dilution Mitigation Efforts

    Digi Power X has significantly strengthened its balance sheet, increasing cash and cash equivalents to $142.4 million and total assets to $279 million as of June 30, 2026, with no long-term debt. To fund future growth and mitigate shareholder dilution, the company is in advanced debt financing discussions, engaging Goldman Sachs to syndicate financing for the Alabama data center and potentially recouping some of the $110 million CapEx already deployed.

    04

    GPU-as-a-Service Expansion and Financing Outlook

    The company aims to exit 2027 with 10 MW in GPU-as-a-Service capacity. Recent developments, including NVIDIA and major banks creating funds for GPU residual value, are expected to facilitate easier debt or asset-based financing for GPUs, accelerating the bare-metal program. Additional GPU orders, such as the Vera Rubin, are expected to land in early Q1 next year to boost income.

    05

    Long-Term Site Development and Power Strategy

    Digi Power X is planning its growth through 2030-2031 across multiple sites. This includes converting existing grandfathered power capacity in North Tonawanda (60 MW) and Buffalo (18 MW) for colocation (40-50 MW) and GPU-as-a-Service (8-10 MW) by 2027, despite a New York moratorium on new data center power expansion. The company also holds 40 acres in North Carolina, targeting an additional 150-200 MW of power by 2029-2030, and is exploring access to 1.3 GW of utility power in West Virginia.

    06

    U.S. Data Center Inc. Strategic Separation

    Digi Power X has reduced its ownership in U.S. Data Center Inc. to 48% (from 55%) to avoid diverting cash from its core business. U.S. Data Center, which designs and manufactures modular data center systems, is raising separate funds, having secured $125 million pre-revenue valuation, with plans to deliver modular systems to different sites in 2027, operating as a distinct business purpose.

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