Axe Compute (AGPU) Q2 2026 earnings summary

Executive summary

• Revenue surged to $3.2 million in Q2 2026, marking the first full quarter of compute services revenue, up from $35,000 in Q1, with all revenue from the access model; build revenue to begin at cluster go-live.

• Over $3 billion in new contracts signed year-to-date, including a $260 million, 36-month enterprise agreement and three additional contracts in July totaling over $2.8 billion, with expected annualized run rate of $696 million upon full deployment.

• Customer prepayments exceeded $317 million for a major cluster build, supporting equipment purchases and capacity expansion.

• Announced a 55 MW multi-location agreement with Duos Technologies, expanding infrastructure partnerships and modular data center footprint.

• Focus shifted to high-performance GPU compute infrastructure for AI workloads, with legacy drug discovery business now non-core and under strategic review.

Financial highlights

• Q2 2026 revenue reached $3.2 million, up sharply from $35,000 in Q1, driven by compute services; net loss for Q2 was $17.2 million, primarily due to $13.1 million in unrealized losses on digital assets.

• Adjusted EBITDA for Q2 2026 was -$4.9 million, with $0.9 million attributed to the legacy drug discovery segment.

• Cash and cash equivalents at June 30, 2026 were $21.9 million, up from $6.9 million at March 31, 2026.

• Net cash provided by operating activities was $17.4 million for H1 2026, mainly from customer prepayments totaling $60.8 million at quarter end.

• Losses on digital assets (ATH) totaled $17.4 million for the six months ended June 30, 2026.

Outlook and guidance

• Annualized run rate expected to reach $696 million once all signed contracts are deployed, spanning Q4 into Q1 next year.

• Targeting an additional $2 billion in new contract signings before the end of 2026, supported by a $6.2 billion qualified pipeline.

• Management targets completion and go-live of a $260 million GPU cluster in Q3 2026, expected to generate $21 million in quarterly revenue.

• Company expects continued operating losses in the near term as it scales compute and treasury initiatives.

• Management believes current liquidity sources are sufficient for at least the next twelve months.