WhiteFiber stock holds Buy rating at Needham on HPC lease progress

Investing.com - WhiteFiber Inc (NASDAQ:WYFI) maintained its Buy rating and $34.00 price target from Needham following the company’s Q2 2025 earnings report released Wednesday. According to InvestingPro data, the company’s stock has shown strong momentum with a 29.16% gain over the past six months, though current analysis suggests the stock is trading above its Fair Value.

The data center company reported Q2 2025 revenue of $18.7 million, aligning with Needham’s estimate of $18.3 million, while adjusted EBITDA of $3.3 million fell short of the expected $8.8 million due to higher G&A expenses that included one-time costs expected to moderate.

Needham expressed satisfaction with WhiteFiber’s progress on a high-performance computing (HPC) lease at its North Carolina site, noting that conversion from letter of intent to finalized lease is now just "weeks away" with potential capacity of up to 99 megawatts. With a market capitalization of $792.43 million, WhiteFiber has attracted strong analyst support, maintaining a bullish consensus rating of 1.2 (where 1 is Strong Buy).

The company has upsized an LOI with one potential tenant from 20MW to 44MW, while another tenant has expressed demand for 99MW at the North Carolina location, with rental economics potentially exceeding initial forecasts at above $2 million per megawatt as base pricing is being renegotiated higher, though this will require increased capital expenditure.

WhiteFiber has launched its project level financing process and expects to achieve loan-to-value ratios of 75-80% at SOFR plus 200-300 basis points, according to Needham’s research note.

In other recent news, WhiteFiber Inc reported its Q2 2025 earnings, showing a significant 48% year-over-year increase in total revenue, which reached $18.7 million. Despite this impressive revenue growth, the company posted a net loss of $8.8 million. The earnings per share were reported as a negative $0.0963. Notably, the revenue slightly exceeded expectations, which were set at $18.3 million. This performance has been met with positive market sentiment, as reflected in the company’s stock performance. These developments highlight the company’s current financial trajectory and investor response.

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