WYFI Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Revenue: $28.8 million, up 54% from $18.7 million in Q2 2025.

Cloud Services Revenue: $23.8 million, compared to $16.6 million in the prior year.

Colocation Revenue: $4.7 million, up from $1.7 million year-over-year.

Gross Profit: $17.1 million, with a gross margin of approximately 59%, slightly down from 61% in the prior year.

Adjusted EBITDA: $5.5 million, an increase from $3.3 million year-over-year.

Net Loss: $15 million, or $0.39 loss per diluted share, attributed to higher depreciation and interest expenses.

Cash Position: $56.1 million in cash and cash equivalents; deferred revenue stood at approximately $143 million.

2Strategic Updates and Business Highlights

NC1 Project: A significant 10-year agreement worth $865 million for 40 megawatts of IT workload has moved into active customer deployment. Initial billing has commenced, and full run-rate billing is expected by the end of August.

Canadian Portfolio: Development of 5 megawatts at NTL2 is set to commence, with plans for a modest expansion at MTL1.

Cloud Services Transformation: Focus on larger, longer-duration contracts has resulted in new agreements totaling over $540 million in contract value. The portfolio is expected to generate over $200 million in annualized revenue once fully deployed.

Managed Services Offering: A capital-light model is being pursued, allowing for revenue generation without significant capital expenditure.

Cross Data Center Networking: Demonstrated 111.2 terabits per second bandwidth with sub-millisecond latency, targeting commercial launch in September.

3Forward Guidance and Outlook

Anticipation of strong demand for AI infrastructure, particularly for 2027 deployments, with a focus on sites that can quickly bring capacity to market.

Plans to secure additional power capacity at NC1, with potential for up to 300 megawatts in total.

Continued emphasis on disciplined capital deployment and maintaining a strong pipeline of customer contracts.

4Challenges and Points of Concern

Customer Termination Impact: A previously disclosed customer termination resulted in $12.3 million in revenue loss and $4 million in related expenses.

Financing Delays: The process for securing permanent financing for NC1 has taken longer than expected, although exclusivity with lenders has been reached.

Supply Chain Constraints: Ongoing supply chain issues have affected the ramp-up of capacity at NC1, although these have been resolved to some extent.

5Notable Q&A Insights

Demand for NC1 Capacity: There is overwhelming demand for the second tranche of capacity at NC1, with discussions ongoing about potential counterparties.

Longer Duration Contracts: Customers are increasingly favoring longer-term contracts due to rising GPU prices and the need for stable access to infrastructure.

Geographic Expansion: Future expansion is driven by customer demand and available power, with a focus on U.S. and Canadian markets.

Managed Services Margins: The managed services model is expected to yield healthy margins and provide a capital-light growth path. Overall, White Fiber has made substantial progress in its operations and financial performance, while also navigating challenges related to customer contracts and financing. The company remains focused on executing its growth strategy and expanding its service offerings in the cloud and colocation markets.