WhiteFiber Sees 31% Revenue Growth as AI Infrastructure Demand Powers Colocation Surge

Revenue Surges 31% with Colocation Jumping 190% on MTL-3 Expansion

WhiteFiber, Inc. (NASDAQ: WYFI), a leading provider of AI infrastructure and high-performance computing solutions, reported impressive first-quarter 2026 results marked by 31% year-over-year revenue growth. Total revenue climbed to $21.92 million, up from $16.77 million in Q1 2025. Much of this momentum came from colocation services, which soared 190%, reaching $4.77 million versus $1.64 million a year prior. The colocation leap was fueled primarily by the MTL-3 facility in Quebec entering its first full quarter of operations.

Strategic Data Center Projects Strengthen Revenue Visibility and Contracted Pipeline

WhiteFiber advanced construction on its major NC-1 data center campus in North Carolina, now with 54 MW of utility power ready and 40 MW of IT load set for deployment under a long-term agreement with Nscale. Recent acquisition of the MTL-3 facility further reduces costs, while large-scale agreements—such as a $17 million Hyperbolic deal supported by H200 GPUs—are set to begin contributing revenue as early as June. As of March 31, the company’s remaining performance obligations totaled approximately $921 million, primarily from long-term colocation contracts, underscoring substantial revenue visibility for future quarters.

Profitability Squeezed by Growth Investments, Despite Positive Adjusted EBITDA

Even with robust top-line expansion, WhiteFiber posted a net loss of $12.04 million compared to net income of $1.43 million a year ago. Contributing factors included higher general and administrative expenses (notably share-based compensation and costs associated with being a standalone public company), increased depreciation and amortization linked to expansion, and higher interest expenses. However, adjusted EBITDA remained positive at $3.00 million, with a gross profit of $13.2 million and a healthy 60.2% gross margin. The table below highlights the EBITDA reconciliation:

Strategic Financing Enhances Flexibility for Expansion

The company strengthened its balance sheet during the quarter, closing a $230 million convertible note offering with an initial conversion price at a 27.5% premium and adding a $20 million loan facility for its Iceland subsidiary. Additionally, WhiteFiber secured a CAD $28 million credit facility to ease its MTL-3 acquisition. As of March 31, WhiteFiber reported $75.8 million in cash and equivalents, plus $4.3 million in restricted cash, providing resources to execute its growth roadmap.

Looking Ahead: Long-Term Agreements and AI Infrastructure Tailwinds Support Growth Thesis

CEO Sam Tabar emphasized WhiteFiber’s expanding pipeline in high-density AI infrastructure and the strengthening of long-term customer relationships focused on enterprise deployments, managed services, and advanced GPU capacity. As NC-1 is commissioned and the cloud business pivots toward deeper integration with enterprise clients, the company is positioning itself for the next stage of growth. With over $921 million in contracted revenue and new partnerships set to ramp in the coming quarters, WhiteFiber’s near-term challenges may be offset by long-term opportunity in the burgeoning AI infrastructure sector.

Takeaway: Focus on Execution as WhiteFiber Aligns Infrastructure with Growing AI Demand

Investors watching WhiteFiber should focus on upcoming NC-1 revenue milestones, continued customer and contract wins, and the company’s ability to manage expansion costs. While short-term profitability is pressured by heavy investment, long-term prospects look compelling as AI-driven demand for computing infrastructure accelerates.

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