Axe Compute (NASDAQ: AGPU) reported $3.2 million in revenue for the second quarter of 2026, marking its first full quarter of compute revenue. The company signed contracts worth over $3 billion, with an expected annualized run rate of $696 million upon full deployment.

Financial Performance

Revenue rose sharply from $35,000 in the first quarter, driven entirely by the company's access model as build revenue has not yet commenced. The company recorded a net loss of $17.2 million, primarily due to $13.1 million in losses on digital assets, largely unrealized fair value changes on ether holdings.

Adjusted EBITDA stood at negative $4.9 million. This metric excludes non-cash fair value adjustments on digital assets, interest, taxes, depreciation, amortization, and stock-based compensation. Approximately $0.9 million of the adjusted EBITDA loss related to the legacy drug discovery service segment.

Balance Sheet and Cash Flow

The company generated $17.4 million in positive operating cash flow for the first half of 2026, driven by customer prepayments. Total customer prepayments reached $60.8 million as of June 30, 2026. Cash on hand increased to $21.9 million from $6.9 million at the end of the first quarter.

Contract liabilities totaled $60.7 million, comprising $33.6 million expected to be recognized within 12 months and $27.1 million in long-term liabilities. These figures reflect the take-or-pay, prepay-first contract structure. Digital assets, primarily ether tokens, were valued at approximately $18.8 million at quarter-end.

Contract Book and Pipeline

Axe Compute added an incremental $2.9 billion in total contract value (TCV) in the first six weeks of the third quarter, bringing year-to-date TCV to over $3.2 billion. The exit run rate leaving Q2 was $37 million annualized. This is expected to climb to roughly $139 million as the April cluster goes live in Q3, and north of $696 million once the full signed book is deployed between Q4 and Q1 next year.

The company maintains an active qualified pipeline of $5.9 billion across 98 open opportunities. Management aims to sign an additional $2 billion in contracts by the end of 2026. Roughly two-thirds of pipeline demand is for Blackwell-class GPUs or Vera Rubin architecture.

What the Numbers Show

The divergence between the GAAP net loss and adjusted EBITDA highlights the impact of digital asset volatility on reported earnings. The $13.1 million loss on digital assets accounted for approximately 76% of the total net loss, obscuring the underlying operational cash generation. With $60.8 million in customer prepayments funding operations and expansion, the company's liquidity position strengthened significantly despite the paper losses on crypto holdings.

Operational Updates

Axe Compute received a $317 million prepayment for its cluster expansion and announced a 55-megawatt expansion partnership with Duos Technologies. The company is deploying a 2K B300 cluster in Columbus, Georgia, set to go live soon. Hiring efforts are focused on deployment and operations staff, with headcount scaling aligned to committed revenue rather than speculative growth.

Axe Compute Inc. (NASDAQ: AGPU) granted 60,000 non-qualified stock options to a non-executive employee as an inducement for employment. The grant, dated September 7, 2026, carries an exercise price of $10.67 per share.

The company disclosed the transaction in compliance with Nasdaq Listing Rule 5635(c)(4). This specific grant was not issued under the Company’s 2024 Equity Incentive Plan, indicating a separate authorization mechanism for this hiring inducement.

Vesting Schedule

The options have a ten-year term with a structured vesting period tied to continued service:

• One-third of the shares vest on the one-year anniversary of the grant date.
• The remaining shares vest in equal monthly installments over the following twenty-four months.

What the Numbers Show

The exercise price of $10.67 per share sets the baseline cost for the employee to acquire the stock. With the vesting spread over three years—initially cliff-vesting after one year, then monthly—the structure aligns long-term retention with immediate employment acceptance, distinct from standard plan-based equity awards.

About Axe Compute

Axe Compute Inc. operates as a neocloud AI infrastructure platform. The company offers Axe Compute Access for high-performance GPU infrastructure and Axe Compute Build for dedicated AI infrastructure deployment. Headquartered in Pittsburgh, Pennsylvania, Axe Compute aims to provide flexibility across hardware, geography, and deployment models.