WhiteFiber’s Q1 Revenue Grows 31% as Colocation Segment Nears 200% Expansion
WhiteFiber, Inc. (NASDAQ: WYFI), a major player in AI infrastructure and high-performance computing, delivered notable top-line growth in Q1 2026. The company reported total revenues of $21.92 million, a sharp 31% increase from the same quarter last year. The main engine? Colocation services revenue surged 190.2% year-over-year, hitting $4.77 million, thanks to new capacity from the MTL-3 facility and robust customer demand. Cloud services also continued to climb, up 13% to $16.77 million.
| Segment | Q1 2026 Revenue ($M) | Q1 2025 Revenue ($M) | Y/Y Change |
|---|---|---|---|
| Cloud Services | 16.77 | 14.84 | +13.0% |
| Colocation Services | 4.77 | 1.64 | +190.2% |
| Other | 0.38 | 0.28 | +35.9% |
| Total Revenue | 21.92 | 16.77 | +30.7% |
Gross Margin Remains Robust, But Strategic Costs Weigh on Earnings
WhiteFiber maintained an industry-leading gross margin of just over 60% (excluding depreciation and amortization), nearly flat versus last year. However, aggressive investments in personnel, infrastructure expansion, and higher share-based compensation led to a significant swing in net results: a net loss of $12.04 million compared to a $1.43 million profit last year. Adjusted EBITDA also slid to $3.00 million, down from $5.99 million in Q1 2025, pointing to higher general and administrative costs as a public company and increased interest expenses.
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Gross Profit ($M, ex. D&A) | 13.2 | 10.1 |
| Gross Margin (ex. D&A) | 60.2% | 60.5% |
| Adjusted EBITDA ($M) | 3.00 | 5.99 |
| Net (Loss) / Income ($M) | -12.04 | 1.43 |
| EPS (Basic/Diluted) | -0.31 | 0.05 |
Contracted Revenue and Balance Sheet Strength Stand Out
Perhaps most telling for WhiteFiber’s future trajectory is the size of its long-term agreements. As of March 31, remaining performance obligations for colocation services stood at a striking $921 million—offering significant future revenue visibility primarily from its NC-1 data center deal. Additional new contracts, such as a $17 million deployment with Modal Labs and the acquisition of the MTL-3 facility, further reinforce the company’s position in the rapidly scaling AI compute landscape.
On liquidity, WhiteFiber ended the quarter with $75.8 million in cash and $4.3 million in restricted cash. The company also bolstered its finances through a $230 million convertible note issued at a 27.5% premium to its share price and secured added lending facilities in Iceland and Canada. These moves increase flexibility to fund growth while containing dilution risk for shareholders.
Key Projects and Expansion: NC-1 and MTL-3 Poised for Growth
WhiteFiber is progressing on its Madison, North Carolina NC-1 data center, with Duke Energy having completed the power upgrades needed for the anticipated 40MW IT load deployment. The rollout for Nscale Global Holdings, backed by an investment-grade hyperscaler, is expected to deliver revenue in Q2, with full contribution targeted for Q3. Meanwhile, full ownership of the MTL-3 facility secures an important revenue source and cuts future rental costs by approximately CAD $3.1 million annually.
What’s the Takeaway? WhiteFiber Is Building Visibility for Its Next Phase
The company’s Q1 results highlight several key trends: surging colocation demand, strong gross margins, and a rapidly expanding pipeline of high-quality, contracted revenue. While increased costs lowered quarterly profits, these primarily stem from investments targeting accelerated long-term growth—particularly in AI workloads and cloud infrastructure. With nearly a billion dollars in future contracted revenue, expanded facility ownership, and powerful customers in the pipeline, WhiteFiber appears to be cementing its role in next-generation computing infrastructure.
For investors, the coming quarters will be crucial as new sites fully ramp and management aims to turn strategic spending into sustained profit growth. The big question: can WhiteFiber’s improved scale and pipeline deliver on its ambitious margin and cash flow goals? The table is set for a pivotal second half of 2026.
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