ChronoScale (CHRN) Q3 2026 earnings summary

Executive summary

• Fiscal Q1 2027 revenue rose 148% YoY to $41.5M; continuing-operations net loss was $26.4M and Adjusted EBITDA was $5.9M.

• Growth included a new customer’s AI hardware resale and related support and maintenance services.

• Strategy shifted to cloud infrastructure after the September 30 sale of Legacy Ekso; major deployments require substantial financing and execution.

Financial highlights

• Revenue was $41.5M vs. $16.7M YoY; cost of revenue increased 91% to $45.6M, including $22.4M of higher AI hardware purchases for resale.

• Operating loss was $24.9M vs. $8.0M; continuing-operations net loss was $26.4M vs. $11.2M, or $0.18 per share vs. $0.08.

• Total net loss was $42.5M, including $16.1M from discontinued operations.

• SG&A rose to $20.7M from $0.4M, including $10.1M stock-based compensation and $4.6M transaction/project-related professional services.

• Adjusted EBITDA was $5.9M; EBITDA was $(9.5)M.

Outlook and guidance

• Two Q3 GPU services agreements provide $2.7B of contracted revenue over three years; related project-specific capex commitments are ~$2.3B over the next 12 months.

• Customer commitments support a target of $1B annualized run-rate revenue by calendar Q3 2027; this is not a GAAP revenue forecast and actual results may differ materially.

• Microsoft deployment targets ~50 MW of AI compute using NVIDIA GB300 NVL72 systems; delivery and commissioning depend on financing and development, construction, and operational milestones.

• Baseten plans ~4 MW of AI compute capacity, with completion expected in calendar Q1 2027, subject to financing and customary project conditions.