Digi Power X (DGX) Q1 2026 earnings summary

Executive summary

• Q1 2026 marked a strategic pivot from crypto mining to AI-driven data center infrastructure, with the launch of NeoCloudz GPU cloud and initial AI revenues recognized in May 2026.

• Achieved positive adjusted EBITDA of $1.1 million, a $2.4 million year-over-year improvement, despite a net loss of $4.7 million due to investments and transition costs.

• Major contracts signed include a 10-year, $1.1 billion colocation deal (expandable to $2.5 billion) and a GPU rental agreement with SubQuadratic AI.

• Significant investments in Tier III AI data centers and partnerships for GPU and colocation services, including the launch of modular deployments.

• Balance sheet strengthened with up to $125 million in cash, $15 million in digital assets, and no long-term debt.

Financial highlights

• Q1 2026 revenue was $6.8 million, down from $9.3 million in Q1 2025, reflecting the wind-down of legacy operations.

• Net loss for Q1 2026 was $4.7 million, compared to net income of $1.6 million in Q1 2025.

• Adjusted EBITDA turned positive at $1.1 million, up from negative $1.3 million year-over-year.

• Cash and cash equivalents at March 31, 2026, were $73 million, with working capital of $67.2 million, up from negative $0.8 million a year prior.

• Net fixed assets increased 29% year-over-year to $26.4 million, reflecting capital investment at Columbiana.

Outlook and guidance

• Fiscal 2027 revenue targeted at $250–$300 million across AI colocation, GPU-as-a-Service, and energy sales, with up to $200 million possible from colocation as capacity expands.

• GPU-as-a-Service segment targeting a year-end annualized run rate of up to $100 million.

• Energy sales projected at approximately $12 million.

• Targeting phase 1 of the Columbiana AI campus to be ready by December 2026, with completion in Q1 2027.

• Additional financing anticipated to support AI infrastructure expansion.