White Fiber (WYFI) investor relations material

Executive summary

• Achieved 31% year-over-year revenue growth to $21.9 million in Q1 2026, driven by strong demand for AI infrastructure and high-performance computing solutions, with both cloud and colocation services contributing.

• Major projects advanced: NC-1 in North Carolina neared initial capacity delivery with 54 MW of power delivered and first 40 MW contracted to Nscale; MTL-3 in Montreal completed its first full quarter, was acquired, and reduced lease costs.

• Cloud business repositioned toward longer-term, enterprise-focused contracts and managed infrastructure services, with a robust pipeline, new customer wins, and a major nine-figure deal in late-stage negotiation.

• Net loss for Q1 2026 was $12 million, compared to net income of $1.4 million in Q1 2025, primarily due to higher operating expenses, share-based compensation, depreciation, and interest expense.

• Major investments included the acquisition and development of new data center facilities and the issuance of $230 million in convertible senior notes.

Financial highlights

• Revenue rose to $21.9 million from $16.8 million year-over-year; cloud revenue was $16.8 million (up 13%), colocation $4.8 million (up 190%).

• Gross profit (excluding depreciation/amortization) was $13.2 million, with a gross margin of 60.2% versus 60.5% prior year.

• Adjusted EBITDA was $3 million, down from $6 million year-over-year, reflecting higher operating expenses.

• Operating loss of $11 million; net loss of $12 million.

• Cash and cash equivalents at quarter-end were $75.8 million, with restricted cash of $4.3 million.

Outlook and guidance

• Management expects Q2 to be the low point for cloud revenue, with sequential growth anticipated in Q3 and through the second half, and full revenue contribution from major contracts expected in Q3 2026.

• G&A expense projected to decrease by around 20% in Q2 compared to Q1.

• Anticipate closing at least one additional site in coming months, subject to diligence and customer alignment.

• Ongoing development of additional sites and expansion of cloud services are expected to drive future growth.

• Cloud strategy gaining traction, with new agreements and deployments expected to contribute revenue starting June 2026.