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Riot Platforms (RIOT) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Financials· Apr 30, 2026

Source: earnings call transcript

Executive summary

Riot Platforms Q1 FY26 — Strategic Data Center Expansion and Strong Financial Discipline

Riot Platforms achieved a significant inflection point in Q1 FY26, transitioning into a major data center operator with the expansion of its AMD partnership to 50 MW and the commencement of Corsicana's 168 MW development. The company demonstrated strong capital discipline, funding growth through operating cash flow and Bitcoin sales without equity dilution. While reporting a GAAP net loss due to non-cash adjustments, Riot is strategically positioned with its power portfolio and integrated engineering capabilities to meet the accelerating demand for high-density compute.

Highlights

5

  • AMD exercised a 25 MW expansion option, bringing total contracted footprint to 50 MW, with initial capacity delivered on schedule in January.

  • Corsicana development initiated for a 168 MW standard design, increasing capacity by 50% for the same CapEx.

  • Funded data center initiatives entirely through operating cash flow and disciplined Bitcoin sales, without issuing equity.

  • Data Center segment generated $33.2 million in total revenue, including $900,000 in high-margin operating lease revenue (91% gross margin).

  • Engineering backlog stood at $193.4 million, with $24 million in cumulative CapEx savings realized since acquisition.

Concerns

2

  • GAAP net loss of $500 million, or $1.44 per diluted share, primarily due to non-cash mark-to-market adjustments on Bitcoin holdings.

  • Adjusted EBITDA loss of $311 million, also impacted by non-cash adjustments.

Guidance & targets

CategoryTargetConfidence
AMD Rockdale critical IT capacity delivery
10 MW
high materiality
High
AMD Rockdale critical IT capacity delivery
15 MW
high materiality
High
Annualized operating lease revenue run rate
$37.8 million
high materiality
High
Annualized operating lease revenue run rate
$55.6 million
high materiality
High
Corsicana core and shell critical IT capacity
160 megawatts
high materiality
High
ESS Metron total engineering capacity increase
approximately 25%
medium materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Bitcoin Mining
Riot's Bitcoin Mining segment remained robust, producing 1,473 Bitcoin and achieving a deployed hash rate of 42.5 EH/s. Power curtailment credits of $21 million reduced the net cost of power and lowered the direct cost to mine Bitcoin by 26% QoQ.
Bitcoin Produced: 1,473Deployed Hash Rate: 42.5 EH/sPower Curtailment Credits: $21MNet Cost to Mine Bitcoin: $44,629 per Bitcoin
————
Data Center
The newly added Data Center segment generated $33.2 million in total revenue, primarily from tenant fit-out services ($32.2 million). Operating lease revenue from the initial 5 MW AMD delivery contributed $900,000 with a 91% gross margin, expected to normalize to 80%+ as operations scale.
Operating Lease Revenue: $900,000Tenant Fit-out Services Revenue: $32.2 millionOperating Lease Gross Margin: 91%Critical IT Capacity Online: 5 MW
$33.2 million———
Engineering
The Engineering segment, comprising ESS Metron and E4A Solutions, reported a strong backlog of $193.4 million, with approximately 90% driven by data center demand. Riot has realized $24 million in cumulative CapEx savings through this vertical integration, which also provides control over critical supply chain components.
Engineering Backlog: $193.4 millionBacklog from Data Center Sector: ~90%Cumulative CapEx Savings: $24 million
————

RIOT operating KPIs by quarter

RIOT operating KPIs stated on its earnings calls, by fiscal quarter
KPI Dec 2025 Q4 FY25This call Mar 2026 Q1 FY26 Jun 2026 Q2 FY26Change vs prior quarter
Backlog Engineering
$224.6M Engineering backlog reached a record $224.6 million at the end of 2025, up dramatically from $55.9 million at the end of 2024, representing a 302% increase over the course of the year. Source: earnings call transcript
$193.4M Engineering backlog stood at $193.4 million during the quarter, with approximately 90% of backlog continuing to be driven by Data Center sector demand. Source: earnings call transcript
$177.1M Engineering revenue was $37.3 million in the quarter, more than triple the $10.6 million from a year ago, while gross margin expanded from approximately 7% to over 27%, with the data center sector representing approximately 90% of our $177.1 million backlog. Source: earnings call transcript
-8.4%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Orderbook & backlog

Engineering Backlog $193.4 million Q1 FY26

Approximately 90% of backlog driven by Data Center sector demand. Apparent decline due to strategic holding back of manufacturing capacity for Riot's own Data Center business.

Deals & partnerships

AMD Lease for critical IT capacity at Rockdale facility $636 million 10-year primary period

Expanded lease for an additional 25 megawatts, bringing total contracted capacity to 50 megawatts. Initial 25 MW delivered 5 MW in January, remaining 20 MW by May 2026. Expansion delivers 10 MW by November 2026 and 15 MW by May 2027. AMD retains an additional 50 MW expansion option and a new 100 MW option (converted from ROFR).

Capital programs

Corsicana Core and Shell Development underway
Funding: operating cash flow and Bitcoin sales
Start: Q1 FY26

Benefit:160 megawatts of completed core and shell

Initiated development of the first core and shell building using an enhanced 168-megawatt standard design. This design delivers 50% more critical IT capacity for the same capital spend as previously planned for 112 MW.

Risks & headwinds

GAAP net loss due to non-cash adjustments Q1 FY26

$500 million net loss, $1.44 per diluted share, $311 million adjusted EBITDA loss

Mitigation:Management emphasizes these are non-cash items (mark-to-market on Bitcoin, D&A) and do not reflect underlying strong fundamental economics. Leveraging Bitcoin treasury and operating cash flows for funding.

Unpredictable timeline for leasing top-tier tenants Ongoing

Leasing this type of capacity to top-tier tenants, that is an enormous lift. And that can have an unpredictable time line.

Mitigation:Riot has completed foundational work, built a strong offering, and is engaging with substantial interest across both sites. Focus on high-quality tenants and methodical approach. Built a structure to rapidly respond to customer interest.

Supply chain constraints for data center components Ongoing

Low- and medium-voltage switchgear, transformers and power distribution centers are among the most severely constrained components in the data center supply chain.

Mitigation:Riot's Engineering segment (ESS Metron) provides vertical integration, allowing control over procurement, sequencing, and prioritization of critical equipment. Investing to increase ESS Metron's capacity by 25% in 2026.

Data center demand outpacing supply Foreseeable future

Data center demand continues to grow rapidly, driven by the commercialization of AI and the accelerating need for high-density compute. Power, execution talent, supply chain access and capital discipline remain the binding constraints and time lines for new capacity continue to extend.

Mitigation:Riot sits on 2 GW of fully approved power, has a built-out operating model, and is aggressively pursuing growth in its power portfolio through greenfield, brownfield, M&A, and strategic partnerships.

What to watch in Q2 FY26

AMD Rockdale critical IT capacity delivery

next quarter (by May 2026)
Current 5 MW delivered in January 2026
Target Remaining 20 MW delivered by May 2026

Why it matters

Completion of the initial 25 MW AMD lease is crucial for establishing Riot's operational credibility and scaling recurring lease revenue.

Initial data center capacity for this expansion will be delivered beginning in November of this year. Second, on the initial 25-megawatt AMD lease, we delivered the first 5 megawatts of critical IT capacity right on schedule in January, with the remaining 20 megawatts on track for delivery this May.

Find out whether RIOT delivers this. Inve re-checks your case every morning.

Q&A highlights

Asked about the higher total contract value and lower CapEx per megawatt for the AMD expansion, and the rationale behind converting the 100 MW right of first refusal (ROFR) to an option.

Jason Les explained that the higher TCV is due to an escalator clause in the original lease, applying to the new expansion. The lower CapEx ($3.3M/MW vs $3.6M/MW) is because the full building preparation was already done for the initial 25 MW. The ROFR was converted to an option to simplify the expansion pathway for AMD and Riot, allowing for clearer discussions with other potential tenants and better aligning with AMD's needs.

“The only economic difference really is that lower build-out cost that you mentioned, and we're able to achieve that lower build-out cost because we're leveraging the full building preparation that was already done in the original phase.”

asked by Paul Golding · answered by Jason Les

2 min read 7 chapters

Detailed narrative

AMD Partnership Expansion

Riot expanded its partnership with AMD, with AMD exercising an additional 25 MW option, bringing the total contracted capacity at Rockdale to 50 MW. This expansion, delivering 10 MW by November 2026 and 15 MW by May 2027, is expected to generate $636 million in total revenue over the 10-year period and $51 million in average annual NOI. The CapEx for this expansion is significantly reduced to $3.3 million per megawatt, improving development yield.

Corsicana Development & Enhanced Design

Development is actively underway at the Corsicana campus, transitioning it into an active data center site. Riot refined its standard design to a 168 MW critical IT building, up from 112 MW, for the same core and shell CapEx, improving capital efficiency. This design supports high densities and liquid cooling, built for repeatability and speed to market, and increases the total planned campus capacity to 756 MW.

Financing Strategy & Capital Recycling

Riot's financing approach prioritizes managing liquidity, broadening capital availability, lowering cost of capital, and prudent balance sheet management. Initial development is funded by operating cash flow and Bitcoin sales, avoiding equity dilution. The company plans to leverage tenant-backed project financing for the AMD lease, targeting 80% loan-to-cost ratios, to recover equity for future data center development in a 'lease, finance, build, recycle' cycle.

Engineering Segment (ESS Metron) Value

The Engineering segment, comprising ESS Metron and E4A Solutions, provides significant strategic value. It has realized $24 million in cumulative CapEx savings and offers critical control over procurement of constrained components like switchgear and transformers. Riot plans to increase ESS Metron's engineering capacity by 25% in 2026, strategically allocating it to support its own data center growth, enhancing vertical integration and speed to market.

Power Portfolio & Land Acquisition

Riot possesses a competitive advantage with 2 gigawatts of fully approved power, including 1.7 gigawatts energized, across its Rockdale and Corsicana sites. The company proactively addressed prior constraints by acquiring adjacent land at Corsicana to unlock full 1 GW development and converting its Rockdale ground lease to a fee simple acquisition, removing significant barriers to leasing. Riot is aggressively pursuing further power portfolio growth through greenfield, brownfield, M&A, and partnerships.

Data Center Organization & Leadership

Over the past year, Riot has built a world-class data center organization with experienced leadership across commercial sales, critical operations, project execution, and design and construction. Key hires include Rhea Williams for AI & Hyperscale Sales and Adam Black (formerly of Google and Meta) to lead design, construction, and procurement, ensuring the team is well-equipped to execute on the significant data center opportunity.

Strategic Priorities for 2026

Riot's priorities for the remainder of 2026 include delivering contracted megawatts to AMD on schedule, executing additional leases at both Rockdale and Corsicana, advancing core and shell development, securing attractive low-cost financing, and selectively growing its power pipeline. The company aims to convert megawatts into contracted leases with creditworthy tenants to enhance market recognition and valuation.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.