Axe Compute Inc. Common Stock 2026 Q2 Earnings Call

Good morning, and welcome to Axe Compute's Q2 2026 earnings call and business update. I am Erin McMahon, CMO and Head of Investor Relations at Axe Compute. Joining me today are Christopher Miglino, Chief Executive Officer, Jeremy Yaukey-Witter, Chief Financial Officer, and Kyle Okamoto, President. Today, we are hosting the call live from Columbus, Georgia, home to a data center that is the site of our NVIDIA B300 cluster build we announced back in April that is set to go live in the coming weeks. Before we begin, today's remarks include forward-looking statements as referenced on slide 2. This presentation contains forward-looking statements within the meaning of safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding signed contracted value, anticipated customer prepayments, deployment timing, annualized run rate, expected margins and profitability, financing structures, potential future contract signing, and future performance.

These statements are subject to uncertainties that could cause actual results to differ materially, including those described in the Risk Factors section of Axe Compute's most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements which speak only as of the date of this presentation. Axe Compute undertakes no obligations to update them except as required by law. Financial figures. Quarterly financial figures presented are as reported in the Form 10-Q filed on August 14, 2026. Annualized run rate means annualized monthly recurring revenue upon full deployment of signed contracts. Total contract value, or TCV, is an operating metric representing the aggregate estimated contractual spend under signed customer contracts.

ARR and TCV are operating metrics that may not represent revenue recognized in a particular period as separately determined in accordance with U.S. GAAP. Signed contracts are subject to deployment, customer acceptance, and other risks described in our SEC filings. Illustrated steady-state economics are models derived, blended across signed build contracts and do not constitute guidance. Non-GAAP measures. This presentation includes adjusted EBITDA, which is a non-GAAP financial measure. The company defines adjusted EBITDA as net income loss adjusted to exclude interest expense income net, income tax expense benefit, depreciation and amortization, stock-based compensation expense, fair value adjustments on digital assets. Adjusted EBITDA is not a substitute for net income loss or any other measure of financial performance prepared in accordance with U.S. GAAP and may not be comparable to similarly titled measures used by other companies.

Management believes adjusted EBITDA is useful to investors because it provides supplemental measure of the company's core operating performance by excluding the effects of capital structure decisions such as interest expense and fair value changes related to digital asset holdings, non-cash charges such as depreciation, amortization, and stock-based compensation, and tax impacts that can vary significantly between periods across companies. Management uses adjusted EBITDA to evaluate the company's performance, compare performance across periods, and assist in the allocation of resources. Investors are cautioned that adjusted EBITDA has limitations and is an analytical tool and should not be considered in isolation or as a substitute for analysis of the company's results as reported under U.S. GAAP. A reconciliation of adjusted EBITDA to the most direct comparables U.S. GAAP financial measures is included in this presentation.

To the extent that the company provides forward-looking adjusted EBITDA guidance in connection with this release or related earnings fall, a reconciliation of such forward-looking non-GAAP measures to the most direct comparable U.S. GAAP measure may not be available without unreasonable effort due to an inherent difficulty in forecasting and quantifying certain amounts, including, but not limited to, fair value adjustments on digital asset holdings, stock-based compensation expense, and other non-cash or non-recurring items, the timing and magnitude of which may be significant. No offer or solicitation. This presentation is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of Axe Compute or any of its affiliates. No securities are being offered or sold in any jurisdiction where such offer or sale would be unlawful. Third-party information. Certain information contained in this presentation has been obtained from third-party sources.

While Axe Compute believes such information to be reliable, it has not independently verified the accuracy or completeness of such information and makes no representation or warranty, expressed or implied, as to its accuracy or completeness. Please review these statements alongside our SEC filings available via investors.axecompute.com. With that, I'll hand it to our CEO, Chris Miglino.

Good morning, everybody. I'm Chris Miglino, and I'm the CEO of Axe Compute. We're here in Georgia. I'm excited to be here. We're getting ready to launch a very large cluster. For those that are new to the Axe Compute story, Axe Compute is an AI infrastructure platform with two growth engines. Build is our primary engine, which is part of what you're looking at here. We design, deploy, own, and operate dedicated GPU clusters for enterprises. Then we have Access. Access is the complementary recurring stream, fast access to GPU capacity across many different locations across the world. Think of it like a top of the funnel, where we meet companies that are interested in GPUs immediately, and then as they grow, we can help them, we can grow with them. What the market sees for Axe is a new AI infrastructure company.

What the market doesn't realize is that we've been in this business for the past couple of years, and our sales team has been selling to the off-takers for that entire time. Our supply team has been talking to data centers and engaging with power owners that entire time as well. While it seems like we're a new kid on the block that has all of a sudden signed all of these transactions, this has been an overnight success that's been in the making for the last two years. Before we get into the quarter, I want to spend a couple of minutes on the market we're operating in, because it's the single most important piece of context for everything that Jeremy and Kyle will be walking through later. It's no surprise that we're in the early innings of a generation build-out of compute.

You can't turn on the news without seeing some kind of news about data centers, the growth of data centers, the amount of money that's being attributed to data centers. In fact, McKinsey & Company says that through 2030, they're just going to be spending around $6.7 trillion, which I think is a low number even at this point. Of that, about $5.2 trillion is attributed specifically to AI-capable capacity. I want to be clear what that second number means. It's not a forecast of AI software revenue for OpenAI or Anthropic, but AI spending on infrastructure. It's the capital that's required for the physical, the power, the shells, the racks, the GPUs, and that's the market that we're in. That's the market that Axe Compute is in. The second thing that we want to point out is the shape of the demand, not just the size.

Customers are not asking for generic cloud. They're asking for dedicated capacity. They don't want to just be in a shared location with a lot of people. They want to own a cluster like the one that you see behind me, and they want to own that and be able to engage with it on their own without anybody else interacting with them. They'll do that on a long-term basis as well. That'll enable us to sign 5- to 10-year transactions. They want a partner that can help them grow into that space. They want a partner that can help them acquire all the equipment, plan the network, design the network, deploy the network, and work with the appropriate data centers to get the right power and to get the right building ready for their compute needs.

That's where our build program comes in, and we help these off-takers do exactly that. We help them do everything that's necessary to get live inside the data center, and then we partner with the right data centers to execute. Not all data centers are made alike, and we do what we can to make sure that we have the right partners that are helping our clients. When you hear the numbers we're about to walk through, more than $3 billion in signed contracts, $696 million in expected annual run rate when we're at full deployment, and more than half a billion dollars in customer prepayments, and I encourage you to read them against the backdrop of massive demand. We're not creating demand. We're converting market where demand structurally exceeds the supply that's out there.

We're signing all these transactions on a take-or-pay basis with multi-year contracts. With that context, let's turn to what happened this quarter. We had an amazing quarter. If we could accomplish what we did this quarter every quarter, everybody on this phone call would be beyond ecstatic. As you can see, we're getting ready to launch the first cluster that we talked about a long time ago. This was the first deal that we told everybody about. This is getting ready to go live, and it's a beautiful piece of art that's there. Many, many hours of work have gone into bringing this to fruition. But we've really done an amazing job at signing around $3 billion, close to $3 billion worth of additional agreements when we had anticipated that for the quarter, we would be happy to sign an additional $1 billion worth of transactions.

It far exceeded what we had projected. It really did. We really thought that it would be a little bit of a slower ramp. I am going to let Kyle talk a little bit more about the pipeline in a little bit, but you will see that this momentum has not stopped at all. We went from signing all these transactions, doing all these deals, getting all of the ARR set up for next year. Next year, when these are all deployed, again, $696 million in ARR once they get deployed. Now we are in dual mode, we are in the execution mode. The team is working on putting these together and getting them up and running and managing them, making sure that we have all of the appropriate staff in place to manage these for our clients.

We are really excited about where we sit today from the momentum that we had this quarter. One question we get a lot, all the time basically, is how are our margin on these build projects? We wanted to give you a slide that would give investors some insight into what that looks like. These are forward-looking, but this is our modeling. It gives the best shot as to where we believe them to be. We think investors can take a look at these and can utilize them to help them model going forward. As you can see, the gross margins are between 28% and 44%, and the EBITDA margins are 62% to 76%. If you apply those against the $3 billion in announced transactions, you can see that the economics that we are going to be experiencing in 2027 are significant.