WhiteFiber’s Revenue Soars 48% as Cloud and Colocation Drive Growth, Yet Net Loss Reflects Expansion Push
Revenue Grows Nearly 50% with Strong Cloud and Colocation Contributions
WhiteFiber, Inc. (NASDAQ: WYFI), a recently public provider of AI infrastructure and high-performance computing (HPC) solutions, reported second-quarter 2025 results that spotlight rapid top-line growth. Revenue surged 48% year-over-year to $18.7 million, driven by robust demand for cloud and colocation services from enterprises seeking capacity for large-scale AI model training and deployment.
The company’s cloud services unit brought in $16.6 million, up 33% from the prior year, boasting a strong gross margin of 61%. Colocation services—hosting clients’ own computing hardware in WhiteFiber’s facilities—added $1.7 million in revenue, with a 60% gross margin. These segments combined contributed a total gross profit of $11.5 million, a meaningful jump from $8 million last year.
| Segment | Revenue ($M) | Gross Profit ($M) | Gross Margin (%) |
|---|---|---|---|
| Cloud Services | 16.60 | 10.08 | 61 |
| Colocation Services | 1.73 | 1.04 | 60 |
Strategic Expansion Accelerates After $183 Million IPO
Following its successful August IPO—raising approximately $183 million at $17 per share—WhiteFiber quickly put capital to work. During the quarter, the company acquired a massive one-million-square-foot data center property in North Carolina ("NC-1") and launched pre-construction for an initial 24-megawatt phase set for completion in Q1 2026. Management says demand for this site is strong, with several prospective customers in discussion for capacity beyond the initial build.
Elsewhere, WhiteFiber initiated deployment of advanced wafer-scale systems for Cerebras under a five-megawatt IT load contract. Revenue from this MTL-3 project is anticipated in the fourth quarter, underlining the firm’s focus on securing large enterprise contracts for AI infrastructure.
Profitability Squeezed by Heavy Operating and Growth Expenses
Despite strong top-line and gross profit growth, the company reported a net loss of $8.83 million for the quarter (compared to a $1.95 million profit last year), largely reflecting an aggressive investment phase and higher non-cash expenses, including $6.53 million in share-based compensation.
Total operating costs and expenses soared to $27.82 million, with significant increases in general and administrative outlays linked to scaling up the business as a standalone entity post-IPO. Adjusted EBITDA, a non-GAAP measure, was $3.28 million—down from $6.99 million in the second quarter of 2024. The decline highlights both the ongoing need to invest in capacity and the margin pressure of building out new facilities ahead of anticipated customer ramp-up.
| Key Financial Metric | Q2 2025 ($M) | Q2 2024 ($M) |
|---|---|---|
| Total Revenue | 18.66 | 12.59 |
| Gross Profit | 11.50 | 8.00 |
| Net (Loss)/Income | (8.83) | 1.95 |
| Adjusted EBITDA | 3.28 | 6.99 |
IPO Boosts Balance Sheet, Supporting Future Growth Plans
The IPO not only brought in substantial new funds, but also saw WhiteFiber’s parent, Bit Digital, Inc. (NASDAQ: BTBT), retain a controlling 71.5% ownership stake. The company has also established an undrawn debt facility of up to CAD $60 million (USD $43.8 million) with Royal Bank of Canada to support further data center development, providing extra balance sheet flexibility as management pursues aggressive expansion in both cloud and colocation.
Management Stresses Position as Pure-Play AI Infrastructure Provider
CEO Sam Tabar noted that this was WhiteFiber’s first earnings release as an independent public company, emphasizing the unique market positioning as one of the few pure-play AI infrastructure providers offering both GPU cloud services and proprietary data center capacity. Management believes this integrated model allows WhiteFiber to address fast-evolving enterprise needs for scale, reliability, and efficiency.
"WhiteFiber is well positioned to capture this demand today and into the future as the market evolves," Tabar said. He also highlighted strong customer interest in new facilities, especially NC-1, and pointed to active negotiations to formalize customer contracts.
Key Takeaway: Rapid Growth with Expansion Headwinds
WhiteFiber’s second quarter results show a company scaling rapidly in a market hungry for AI and HPC solutions. Investors should weigh the robust top-line and gross margin expansion against the realities of near-term profitability pressure as WhiteFiber invests in building out new infrastructure and customer relationships.
The IPO and new debt facility leave WhiteFiber well-capitalized to compete and expand. The main question for the quarters ahead: Can revenue scale quickly enough to absorb mounting operating expenses as the company executes its bold expansion strategy?
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