Axe Compute (AGPU) Q1 2026 earnings summary

Executive summary

• Transitioned from legacy drug discovery to focus on AI compute services and digital asset treasury, rebranding as Axe Compute Inc. in December 2025.

• Signed a $260 million, 36-month enterprise contract for NVIDIA B300 GPU clusters, with deployment targeted for Q3 2026 and $21 million in quarterly revenue expected once live.

• Built a $4.3 billion pipeline of qualified deals, with most prospects seeking 36- to 60-month commitments and 45 prospects in advanced stages.

• Leadership transition included new CEO, President, and CFO appointments in Q1 2026.

• Strategic review of legacy drug discovery business ongoing, with options including sale or partnership.

Financial highlights

• Q1 2026 revenue was $35,311, down from $110,310 in Q1 2025, reflecting the wind-down of legacy business.

• Net loss for Q1 2026 was $7.7 million, or $0.36 per share, including $4.3 million in non-cash digital asset losses.

• Operating loss (excluding digital asset adjustment) was $3.4 million.

• General and administrative expenses rose to $2.9 million, driven by one-time CEO severance and personnel costs.

• Cash and equivalents were $6.9 million at quarter-end, with total short-term liquidity of $36.5 million including digital assets and receivables.

Outlook and guidance

• Substantial revenue growth expected in Q2 and Q3 2026 as new compute contracts begin revenue recognition.

• Management confident in closing $1 billion in transactions in 2026, supported by a robust $4.3 billion pipeline.

• Liquidity is expected to fund operations through fiscal 2026 and beyond, subject to digital asset price volatility.