Digi Power X Inc. (NASDAQ: DGXX) reported second quarter 2026 revenue of $6.6 million, marking the company’s first generation of AI compute revenue. The infrastructure operator recorded a net loss of $14.4 million for the quarter ended June 30, 2026, but achieved positive Adjusted EBITDA of $3.3 million, up from $0.1 million in the prior-year period.

The results highlight the company’s transition from legacy mining and colocation services to AI infrastructure. Approximately $1.1 million of the quarterly revenue came from GPU bare-metal rentals, generated over five weeks of operations from an initial $30 million investment in GPU infrastructure representing 0.6 MW of deployed capacity.

Financial Performance

Revenue composition for Q2 2026 reflected a diversified mix of legacy and new business lines:

The company’s GAAP net loss of $14.4 million included non-cash charges such as share-based compensation ($5.8 million), crypto revaluation loss ($2.8 million), and warrant fair value loss ($5.0 million). After adding back depreciation and amortization ($4.1 million) and these adjustments, Adjusted EBITDA turned positive at $3.3 million.

What the Numbers Show

The divergence between GAAP net loss and positive Adjusted EBITDA highlights the impact of non-operational accounting items on reported profitability. Share-based compensation, crypto revaluation losses, and warrant fair value changes accounted for $13.6 million of the $14.4 million net loss, indicating that core operational cash flows are improving despite headline losses. The initial GPU deployment generated $1.1 million in revenue against a $30 million capital investment, demonstrating early monetization of AI compute assets.

Balance Sheet & Capital Position

As of June 30, 2026, Digi Power X held $142.4 million in cash and cash equivalents, with total assets of $279.6 million and shareholders’ equity of $265.0 million. The company remains debt-free. Cash position increased to approximately $150 million as of August 14, 2026.

Year-to-date capital investment and equipment deposits totaled approximately $110 million. Property, plant and equipment, net, along with long-term assets, combined for $127.5 million.

Operational Updates

Alabama Data Center: Construction of the Tier III AI data center in Columbiana, Alabama, continues on schedule. Phase 1 (15 MW IT load) is expected in December 2026, followed by Phase 2 (25 MW) in March 2027, totaling up to 40 MW. The facility is backed by a 10-year agreement representing $1.1 billion in contracted revenue, with an option to expand to $2.5 billion. The company is in advanced discussions with lenders to finalize debt financing, with Goldman Sachs engaged to assist in syndication.

NeoCloudz GPU Platform: The B300 GPU bare-metal infrastructure has operated at 100% uptime since May 2026. Management plans to expand the platform by approximately 10 MW during 2027 and is evaluating additional power sites.

New York & North Carolina: The company is preparing New York assets for AI conversion, targeting transition in Q3 and Q4 2027. In North Carolina, development planning continues for a campus adjacent to a major electrical switchyard, contemplating approximately 75 MW in 2029 and another 75 MW in 2030.

West Virginia: The company is assessing opportunities related to a letter of intent for a 1.3 GW power generation asset.

2027 Outlook

Digi Power X targets an annualized revenue run-rate of $250 million to $300 million by Q3 2027. This outlook comprises:

• Contracted Revenue: Approximately $140 million annualized run-rate based on existing contracts.
• Additional Deployments: Targeting 40 MW of additional colocation capacity and 10 MW of GPU bare-metal compute capacity.

Management expects Q3 2026 revenue to increase significantly compared with Q2 2026, subject to execution, customer ramp, and financing availability.

Digi Power X is targeting an annualized run rate of $250-$300 million for fiscal 2027 across its three operating segments, driven by AI colocation and GPU-as-a-Service. The company reported a strong financial position with approximately $155 million in cash and cash equivalents as of July 3, 2026. To support expansion, roughly $95 million of capital has been deployed year-to-date into the Alabama site entirely from internal resources, while the company maintains no long-term debt.

Operations Update

Construction of the company's purpose-built AI data center campus is progressing on schedule. The first phase remains on track for a ready-for-service date of December 2026, with the second phase expected to come online by the end of the first fiscal quarter of 2027. Crews are currently erecting the building shell, marking the transition from site work to vertical construction. Commitments are in place for all major long-lead equipment for Phase 1, including critical electrical and switchgear infrastructure.

The NeoCloudz GPU-as-a-Service platform has been running AI workloads without interruption since the second quarter of 2026. The platform contributed to the company's first AI-related revenues during the past quarter. To support growth, the company expects to open a Silicon Valley office by August 2026 and is building a dedicated engineering team. Additionally, the company is arranging project-level financing to underwrite the data center buildout.

US Data Centers Inc. Update

Digi Power X is a major shareholder of US Data Centers Inc., which develops and commercializes the ARMS modular data center platform. The company confirms that the ARMS 200 modular unit has been live and operating successfully at Tier 3 standards at the Alabama facility since May 15, 2026, and has been generating AI-related revenues for Digi Power X since that date.

Financial Position

As of July 3, 2026, the company's financial standing is characterized by significant liquidity and self-funded expansion.

2027 Outlook

For fiscal 2027, Digi Power X provided revenue targets across its three operating segments. The company is targeting an aggregate of 90 MW of AI colocation capacity, including 40 MW from the Colocation Agreement.

The AI colocation revenue reflects a full year of Phase 1 operations and a partial year of Phase 2 operations. NeoCloudz revenue is expected to scale toward approximately 10 MW of deployed capacity, targeting a year-end annualized run rate of up to approximately $100 million.