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Riot Platforms (RIOT) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Financials· Aug 10, 2026

Source: earnings call transcript

Executive summary

Riot Platforms Q2 FY26 — Data Center Expansion and AI Lab Lease

Riot Platforms significantly advanced its data center strategy in Q2 FY26, securing a major 191 MW lease with a frontier AI lab and placing its 1 GW Corsicana site under LOI. The company is leveraging its power-first approach and vertical integration to rapidly deliver mission-critical AI infrastructure, funding expansion through strategic Bitcoin sales and project-level financing.

Highlights

5

  • Secured a 20-year data center lease with a frontier AI lab for 191 MW, expected to generate $9.1 billion in total contract revenue.

  • Total contracted data center revenue reached $9.8 billion across 241 MW with AMD and the AI lab.

  • Corsicana's 1 GW site is under a nonbinding LOI with a single tenant for 756 MW of critical IT capacity.

  • Achieved 84% operating lease gross margin in the Data Center segment, generating $4.1 million gross profit from recurring lease revenue.

  • Engineering segment revenue more than tripled YoY to $37.3 million, with gross margin expanding to over 27%.

Concerns

4

  • Reported a GAAP net loss of $237 million or $0.68 per diluted share.

  • Adjusted EBITDA loss of $70 million.

  • Incurred a $75 million mark-to-market loss on Bitcoin holdings.

  • Recorded a $28 million impairment of mining-related construction items at Rockdale due to repurposing for data centers.

Guidance & targets

CategoryTargetConfidence
AI Lab Lease Capacity Delivery (Phase 1)
First 96 MW delivered
high materiality
High
AI Lab Lease Capacity Delivery (Full Deployment)
Full 191 MW deployment completed
high materiality
High
AMD Expansion Capacity Delivery (Initial Phase)
Initial 10 MW delivered
medium materiality
High
AMD Expansion Capacity Delivery (Full Phase)
Remaining 15 MW delivered
medium materiality
High
AI Lab Lease Total Contract Revenue
$9.1 billion
high materiality
High
AI Lab Lease Net Operating Income (NOI)
$7.3 billion to $8.2 billion
high materiality
High
AI Lab Lease Illustrative Capital Expenditures
$11 million to $12 million per IT megawatt
high materiality
High
AMD Lease Average Annual Revenue
$63.6 million
medium materiality
High
AMD Lease Average Annual NOI
$51 million
medium materiality
High
AI Lab Lease Average Annual Revenue
$457 million
high materiality
High
AI Lab Lease Average Annual NOI
$365 million to $411 million
high materiality
High
Combined Average Annual Revenue (AMD + AI Lab)
$520 million
high materiality
High
Combined Average Annual NOI (AMD + AI Lab)
$416 million to $462 million
high materiality
High
AMD Initial 25 MW Financing Close
Close before the end of the third quarter
medium materiality
High
AMD Initial 25 MW Debt Proceeds
Nearly double initial equity position
medium materiality
High
AI Lab Financing Debt-to-Cost Range
80% to 90% loan-to-cost
high materiality
High
AI Lab Financing Equity Requirement (Net)
$30 million to $280 million
high materiality
High
AI Lab Build-out CapEx Cadence
Ramp up H2 2026, peak H1 2027, continue into early 2028
medium materiality
High
Combined Project CapEx Peak (AMD + AI Lab)
Around Q2 and Q3 of 2027
medium materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Data Center
Recurring operating lease revenue grew over 400% QoQ, driving gross profit growth despite lower total segment revenue due to fluctuating fit-out activity. The 84% operating lease gross margin is in line with expectations.
Critical IT capacity online: 25 MWOperating lease revenue: $4.9 millionOperating lease gross margin: 84%Tenant fit-out services revenue: $18.3 million
$23.2 million—Down from $32.2 million (Q1 FY26)$6.5 million gross profit
Bitcoin Mining
Power strategy generated significant curtailment credits, maintaining industry-leading low power costs and mining efficiency despite a 9% YoY increase in the average global network hash rate. Hash rate utilization was partially impacted by minor downtime in Kentucky.
Bitcoin produced: 1,587Bitcoin per day: 17.4Deployed hash rate: 44.4 EH/sGlobal network share: 4.6%Hash rate utilization: 87%Power curtailment credits: $10 millionNet cost of power: $0.036 per kWhDirect cost to mine per Bitcoin: $49,912
$113.7 million———
Engineering (ESS Metron and E4A Solutions)
Strong growth and margin expansion, with accelerated backlog conversion due to a 25% increase in manufacturing capacity. This segment plays a key supporting role in Riot's vertically integrated data center strategy.
Backlog: $177.1 millionData center sector share of backlog: 90%Manufacturing capacity increase: 25%
$37.3 millionMore than triple from $10.6 million—Over 27% gross margin

RIOT operating KPIs by quarter

RIOT operating KPIs stated on its earnings calls, by fiscal quarter
KPI Dec 2025 Q4 FY25 Mar 2026 Q1 FY26This call 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 segment backlog $177.1 million Q2 FY26

Approximately 90% related to the data center sector.

Total contracted data center revenue $9.8 billion Q2 FY26

Across 241 MW with AMD and a leading frontier AI lab.

Deals & partnerships

One of the world's leading frontier AI labs Data center lease for 191 MW critical IT capacity at Rockdale. $9.1 billion total contract revenue (initial 20-year term); $16.1 billion with two 5-year extension options 20 years (initial term), with two 5-year extension options

Custom-built Tier 3 data center based on tenant's latest design specifications, with annual escalations in base rent. First 96 MW targeted for delivery in December 2027, full deployment by June 2028.

AMD Expansion option exercised for 25 MW, bringing total contracted capacity to 50 MW at Rockdale.

Initial 25 MW delivered in May. The second 25 MW is under construction, with initial 10 MW expected by November 2026 and remaining 15 MW by May 2027. AMD retains expansion options for up to an additional 150 MW at Rockdale.

Single tenant (unnamed) Nonbinding Letter of Intent (LOI) for the entirety of the Corsicana site.

Covers 756 MW of critical IT capacity. Advanced commercial and design discussions are underway. This milestone reflects strong demand for large-scale, fully approved power.

Capital programs

Frontier AI Lab Data Center Build-out (Rockdale) underway $2.1 billion to $2.3 billion
Funding: $573 million interim financing from Morgan Stanley, anticipated debt financing (80%-90% loan-to-cost), equity from balance sheet and recycled AMD proceeds
Start: Development work already underway

Benefit:191 MW critical IT capacity

Custom-built Tier 3 data center based on tenant's latest design specifications. Design finalized, procurement begun, Yates Construction selected as general contractor. ESS Metron and E4A integrated into delivery plan. Required power capacity secured under active interconnection.

AMD Data Center Expansion (Rockdale) underway $81 million
Funding: $70 million delayed draw term loan (85% loan to cost), $12 million net equity requirement
Start: Construction underway

Benefit:25 MW critical IT capacity

Design nearly complete. ESS Metron's engineering and manufacturing capabilities embedded in the delivery plan for schedule certainty and cost discipline.

Risks & headwinds

Bitcoin Price Volatility Q2 FY26

$75 million mark-to-market loss on Bitcoin holdings

Mitigation:Utilizing Bitcoin inventory as a primary funding source for data center capital expenditures and increasing cash on hand to enhance liquidity visibility.

Mining Asset Impairment Q2 FY26

$28 million impairment of mining-related construction items

Mitigation:Repurposing the affected capacity at Rockdale for data center development, aligning with the strategic shift towards AI infrastructure.

Nonbinding LOI Uncertainty (Corsicana) Ongoing, 'coming months'

Nonbinding nature of the LOI for the Corsicana site, which is subject to twists and turns

Mitigation:Deep engagement in technical, commercial, and legal discussions with the prospective tenant; continuing development and procurement of long-lead items to derisk execution regardless of the LOI outcome.

Supply Chain Bottlenecks (Long-lead equipment) Ongoing

Electrical equipment (switchgear, PDUs) remains supply chain constrained

Mitigation:Leveraging vertical integration through ESS Metron and E4A Solutions to control the supply chain, accelerate substation development, and reduce equipment risk for data center builds.

ERCOT Batch Process and Regulatory Scrutiny Ongoing

Evolving ERCOT batch process and Governor Abbott's comments on data center requirements, making new power acquisition more challenging

Mitigation:Existing sites are not subject to the batch process due to existing interconnection agreements; active engagement with ERCOT; adherence to responsible development practices (e.g., paying for infrastructure, closed-loop water cooling) to maintain good standing and enhance value of current sites.

What to watch in Q3 FY26

Corsicana LOI conversion to definitive lease

Coming months
Current Nonbinding LOI with single tenant for 756 MW
Target Executed lease agreement

Why it matters

Represents a significant portion of Riot's power portfolio and a major step in its data center strategy, with potential for over $1 billion in annual rent.

We will update the market in the coming months when there's more to share about this process.

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

Q&A highlights

How was the CapEx range for the new AI lab deal determined, and what factors contribute to its clarity?

Jason Les explained that the CapEx range benefits from finalized design work with the tenant, advanced procurement of long-lead items, and collaborative efforts with a general contractor experienced with the tenant. These factors provide strong visibility into labor availability and pricing, allowing for a well-defined CapEx figure that includes a healthy contingency.

“So this has allowed us to have really good clarity on labor availability and pricing to fully deliver the projects.”

asked by Stephen Byrd · answered by Jason Les

3 min read 6 chapters

Detailed narrative

Strategic Shift to Data Centers

Riot Platforms is strategically pivoting from a Bitcoin mining-centric model to a diversified data center business, leveraging its substantial power infrastructure. The company emphasizes its "power-first" approach and vertical integration through ESS Metron and E4A Solutions to derisk execution and control costs in data center development. This strategic shift is a direct response to the accelerating demand for critical IT capacity from AI labs and hyperscalers, positioning Riot as a key infrastructure provider in the AI era.

Rockdale Campus Transformation

The Rockdale campus is undergoing a significant transformation, evolving from a single-use Bitcoin mining site into a premier data center development hub. With 241 MW now contracted to AMD and a leading frontier AI lab, the campus is diversifying its tenant base and is expected to generate high-margin, recurring revenue. This evolution validates Riot's vision for the site, which was acquired with the intent to become one of the country's leading data center development campuses, attracting tenants with requirements for certainty of power at scale and reliable execution.

Corsicana Development Momentum

The Corsicana site, boasting 1 gigawatt of fully approved power on Riot-owned land, has achieved a significant milestone by entering into a nonbinding Letter of Intent (LOI) with a single tenant for its entire 756 MW critical IT capacity. This development underscores the strong market demand for large-scale, pre-approved power and the confidence prospective tenants have in Riot's ability to deliver. Despite the non-binding nature of the LOI, the company is engaged in advanced commercial and design discussions, continuing development and procurement to derisk execution timelines for this multi-year project.

Disciplined Financing Strategy

Riot employs a multi-pillar financing strategy to fund its data center expansion, utilizing its strong balance sheet, which includes $666 million in Bitcoin and $549 million in cash. The strategy involves capital recycling from completed projects, such as the initial 25 MW for AMD, to generate net new capital. This capital is then redeployed into new, higher-return projects like the AI lab lease, with the goal of minimizing reliance on external equity financing and extending the runway of its balance sheet.

Vertical Integration Advantage

The Engineering segment, comprising ESS Metron and E4A Solutions, provides a crucial competitive advantage by manufacturing critical long-lead components in-house, such as low and medium voltage switchgear and power distribution units. This vertical integration accelerates substation development, reduces long-lead equipment risk, and generates meaningful CapEx savings, estimated at $23.8 million cumulatively since ESS Metron's acquisition. This capability was key to the on-schedule delivery for AMD and is fully integrated into the AI lab build-out plan.

Power Management Expertise

Riot's power strategy remains a fundamental strength, with its Bitcoin mining segment generating $10 million in power curtailment credits in Q2 FY26. This expertise resulted in a net cost of power of $0.036 per kilowatt hour, which is among the lowest in the industry. The company's ability to manage its power portfolio and trading capabilities is a core aspect of its operations, reflecting its identity as a "power-first" company and providing a competitive edge in its data center offerings.

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