WhiteFiber, Inc. Ordinary Shares 2026 Q2 Earnings Call

Cameron, please go ahead. Thank you, and welcome to the White Fiber second quarter 2026 earnings call.

Joining me today are Sam Tabar, our Chief Executive Officer, and Justin Zhu, our Chief Financial Officer. Before we begin, I'd like to remind everyone that some of the statements we make on this call are forward-looking in nature and subject to risks and uncertainties that could cause actual results to differ materially. Such risks and uncertainties include, but are not limited to, those factors described in today's earnings press release, our Form 10-Q for the quarter ended June 30, 2026, filed today, as well as other filings we may make with the SEC from time to time. Our remarks today may also include non-GAAP financial measures. Reconciliations to the most directly comparable GAAP measures can be found in our Form 10-Q and in the earnings press release posted on our website.

Following our prepared remarks, we will open the line for questions. With that, I'll turn the call over to Sam to discuss our performance.

Sam? Thank you, Cam, and thank you everyone for joining us.

Last week marked the first anniversary of White Fiber's initial public offering. Over the past year, we've made substantial progress towards the company we set out to build. Most notably, we signed a transformational 10-year agreement representing approximately $865 million of contracted revenue for 40 megawatts of, excuse me, IT workload at NC1. We've since advanced the project through construction and now into active customer deployment. We've also started operations and turned on revenue at our Montreal three location under our Cerebras agreement, expanded our development pipeline, strengthened our capital base, and repositioned our cloud services business around larger, longer duration opportunities. We are proud of what we've accomplished in our first year, but we aren't satisfied. We remain in the early stages of what Fiber. Excuse me, I've got a bit of a cough.

We remain in the early stages of what White Fiber can become. Our most significant accomplishments remain ahead of us. As we enter this next phase, I'd also like to welcome Justin Zhu as White Fiber's Chief Financial Officer. Justin previously served as Senior Vice President of Finance and Chief Accounting Officer. He has been with White Fiber since its formation. He has a deep understanding of our business, financial operations, and growth strategy. Eric Huang is stepping away from his executive role at White Fiber to focus fully on Bit Digital. We thank Eric for his important contributions to White Fiber's development. Eric will continue to support White Fiber as a senior advisor and non-voting observer to our board. He'll provide additional continuity through the transition. We believe this structure provides each company with increasingly dedicated financial leadership as both businesses continue to grow.

Turning to our operating update, I'll begin with NC1, which remains our most important near-term operating and financial priority. NC1 has moved into active customer deployment. As of today, approximately 20 megawatts of IT capacity is available to support the installation and testing activities of Nscale and its investment-grade offtaker. Initial billing to our customer has now commenced for the initial tranches of capacity. Remaining equipment startups and testing are progressing very well. We expect the remaining capacity to be turned over progressively through August. By the end of this month, the full 40 megawatts of contracted IT load will reach a full run rate billing. As we discussed last quarter, the pace of the ramp was affected by delivering and commissioning issues involving certain switchgear equipment. Those issues have since been resolved.

Final deployment also requires tight coordination between the commissioning of our infrastructure and the installation and testing of customer equipment. We've worked closely with Nscale on a phased turnover schedule that sequences the work being completed by both parties. While the ramp has taken a touch longer than we originally anticipated, the contracted economics of the agreement remain unchanged. The results speak for themselves. It took disciplined coordination across our team, our customer, the utility, our equipment vendors, and our construction partners, all amid persistent supply chain constraints. We believe NC1 shows what White Fiber can do. It demonstrates our ability to execute complex, large-scale AI projects. Just as importantly, we have expanded an experienced operating team on the ground. The team spans facility operations, engineering, and customer support. This is not simply a development project or a piece of powered real estate to us.

It is a mission-critical facility built to operate continuously and support customers over long-term contracts. The people, systems, and operating capabilities now in place reduce execution risk as NC1 moves towards full contracted operations. We established a foundation for continued expansion of the campus. We also established a long-term and positive presence with the local community. Ultimately, we're building a durable operating business in North Carolina. The initial 40-megawatt deployment is only the first stage at NC1. We expect Duke Energy to provide a delivery schedule for the next 45 megawatts of gross capacity in the near term. At that point, Nscale will receive priority notification of the available capacity in accordance with our existing agreement. We also received extremely strong inbound interest for this new upcoming tranche. We'll evaluate the path forward based on what we believe will deliver the best outcome for White Fiber.

Beyond this, we are working with Duke Energy in further evaluating the potential delivery of an additional 200 megawatts of incremental power to the site. Together with the initial phases, that would bring NC1 to approximately 300 gross megawatts. This is a longer-term opportunity and remains subject to the utility process. We believe it shows how NC1 could scale over time. It also shows why securing the site early was strategically important. NC1 is our flagship facility. It validates White Fiber's ability to acquire, develop, and operate large-scale AI infrastructure. We intend to repeat that capability across our pipeline. Turning to our Canadian portfolio, the most significant update is at MTL2. We had paused development while we evaluated the best use of that site. We have now decided to move forward. We plan to develop approximately 5 megawatts of gross capacity, targeting completion around year-end.

This decision is supported by active discussions with certain prospective customers. We are evaluating two deployment paths. The first is traditional co-location. The second is a vertically integrated deployment combining our data center infrastructure and our cloud services capabilities. We will provide more details soon as customer discussions and the commercial structure progress. Moving on to our other sites, MTL1 continues to perform steadily. Recent customer renewals support a stable outlook, and we are evaluating a modest expansion of that particular facility. At MTL3, the Cerebras deployment continues to perform well. We are also pursuing additional utility capacity for that site that could support a meaningful expansion over time. The approval process remains ongoing. Beyond our existing portfolio, demand for power-ready, high-density AI infrastructure remains very strong. Demand is particularly acute for 2027 deployments.

This reinforces our view that capacity able to reach the market within the next 12 to 18 months will remain extremely scarce. This is where our retrofit-first approach has a clear advantage. We prioritize sites with existing infrastructure and a credible path to power. That allows us to bring capacity to market faster than traditional greenfield development. Speed to market is a key competitive advantage for White Fiber. We have built a substantial development pipeline. We are concentrating on the opportunities we can advance towards definitive commitments. We remain disciplined with capital. We prioritize sites with clear current and future power visibility, strong customer alignment, attractive return potential, and a path towards project-level financing. We are also deliberate about sequencing our investments. As permanent financing for NC1 progresses, we expect greater flexibility to advance the next opportunities in our pipeline.

We remain focused on moving forward on the right terms and in a way that supports disciplined, repeatable growth. Turning to cloud services. We made substantial progress in transforming the business around larger, longer duration customer engagements and a more capital-efficient operating model. We streamlined the organization and concentrated our resources on the areas where White Fiber provides the greatest value. That being sourcing next-generation hardware, deploying complex clusters, and operating infrastructure over the life of a customer engagement. We are encouraged by early results. Our commercial pipeline has expanded considerably. We are increasing converting that pipeline into larger scale multi-year contracts. These agreements are supported by firm customer commitments. Customer prepayments and third-party equipment financing significantly reduce the equity capital required from White Fiber's balance sheet. We are also seeing an important shift in how customers select infrastructure partners.