Earnings call transcript: WhiteFiber Inc reports Q2 2025 revenue surge, stock climbs

WhiteFiber Inc announced its Q2 2025 earnings, revealing a 48% year-over-year increase in total revenue, reaching $18.7 million. Despite reporting a net loss of $8.8 million, the company’s stock rose 8.66% to $19.28, reflecting investor optimism. The earnings per share (EPS) was a negative $0.0963, with revenue slightly above expectations at $18.3 million. Post-earnings, the stock continued to rise in aftermarket trading, indicating positive market sentiment. According to InvestingPro data, WhiteFiber maintains a healthy gross profit margin of 62.09% and has shown strong returns over the past three months, despite recent market volatility.

Key Takeaways

• WhiteFiber’s total revenue increased by 48% year-over-year.
• Cloud services revenue grew by 33%, contributing significantly to overall performance.
• The company’s stock rose by 8.66% following the earnings release.
• WhiteFiber completed its IPO in August 2025, raising significant capital.
• The company is expanding its data center portfolio, with plans for further growth.

Company Performance

WhiteFiber Inc demonstrated robust performance in Q2 2025, with total revenue reaching $18.7 million, marking a 48% increase compared to the same period last year. The cloud services segment was a major contributor, with revenue growing 33% year-over-year. Despite an operating loss of $9.2 million, the company remains focused on expanding its infrastructure and capabilities to meet growing demand in the AI sector.

Financial Highlights

• Revenue: $18.7 million, up 48% year-over-year
• Cloud services revenue: $16.6 million, up 33% year-over-year
• Gross profit: $10.1 million, representing a 61% margin
• Operating loss: $9.2 million
• Net loss: $8.8 million
• Cash and equivalents: $16.4 million
• Post-IPO cash proceeds: $183 million

Earnings vs. Forecast

WhiteFiber’s Q2 2025 EPS was reported at a negative $0.0963, with actual revenue slightly surpassing the forecast of $18.3 million. The negative EPS indicates a miss compared to expectations, yet the revenue beat suggests operational resilience. This performance aligns with the company’s strategic focus on expanding its data center and cloud services capabilities.

Market Reaction

Following the earnings announcement, WhiteFiber’s stock price increased by 8.66% to $19.28. In aftermarket trading, the stock continued to gain momentum, rising by an additional 0.78% to $19.43. This positive market reaction reflects investor confidence in the company’s growth strategy and potential in the expanding AI infrastructure market.

Outlook & Guidance

Looking forward, WhiteFiber plans to launch the first phase of its NC1 data center in Q1 2026, with potential expansion to 99 megawatts over the next two years. The company is targeting a development cost of $8 million per megawatt and is exploring new sites in Arizona, Texas, and New York. WhiteFiber’s guidance for future quarters includes continued revenue growth and strategic expansion in response to increasing demand from AI customers. InvestingPro forecasts support this outlook, with analysts anticipating significant sales growth in the current year. The company’s next earnings report is scheduled for September 17, 2025, which will provide crucial updates on expansion progress.

Executive Commentary

CEO Sam Tabar emphasized the company’s competitive advantage, stating, "We build two times faster and 40% cheaper," highlighting WhiteFiber’s efficiency in infrastructure development. He also noted, "Time is extremely expensive for these clients," underscoring the importance of rapid deployment in meeting customer needs. Tabar expressed confidence in the company’s growing market reputation.

Risks and Challenges

• Potential delays in data center expansions could affect growth projections.
• The competitive landscape in AI infrastructure may pressure margins.
• Economic fluctuations could impact capital availability and cost.
• Dependence on a few large clients poses concentration risk.
• Regulatory changes in data privacy and cloud services may affect operations.

Q&A

During the earnings call, analysts inquired about the potential for larger megawatt contracts and the company’s expansion strategy. WhiteFiber executives highlighted strong interest from multiple parties for the NC1 project and emphasized their focus on economically attractive sites and long-term contracts with creditworthy clients.

Full transcript - WhiteFiber Inc (WYFI) Q2 2025:

Conference Operator: Good afternoon and thank you for joining us. We will begin with prepared remarks from management, followed by a question and answer session. During the Q&A, if you would like to ask a question, please press 1 on your telephone keypad. As a reminder, today’s conference is being recorded. I would now like to turn the call over to your host, Cameron Schneer, Senior Vice President of Capital Markets and Corporate Strategy at White Fiber. Cameron, please go ahead.

Cameron Schneer, Senior Vice President of Capital Markets and Corporate Strategy, White Fiber: Thank you and welcome to the White Fiber second quarter 2025 earnings call. Joining me today are Sam Tabar, our Chief Executive Officer, and Eric Wong, our Chief Financial Officer. Before we begin, I’d like to remind everyone that some of the statements we will make on this call are forward-looking in nature and subject to risks and uncertainties that could cause actual results to differ materially. Such risks and uncertainties include, but are not limited to, those factors described in today’s earnings press release, our Form 10-Q for the fiscal quarter ended June 30, 2025, filed today, as well as our other filings we make with the SEC from time to time. Our remarks today may include non-GAAP financial measures. Reconciliations to the most directly comparable GAAP measures can be found in our Form 10-Q and in the earnings press release posted on our website.

Following our prepared remarks, we’ll open the call up for questions. With that, I’ll turn the call over to Sam to discuss our performance. Sam?

Sam Tabar, Chief Executive Officer, White Fiber: Thank you, Cam, and thank you all for joining us. This is our first earnings call as a standalone public company following the successful completion of our IPO in August. The offering priced on August 6th at $17 per share, the high end of the range, and closed on August 8th. It was upsized due to strong demand. On September 3rd, our underwriters fully exercised the Greenshoe overallotment option, bringing total gross proceeds from the transaction to approximately $183 million. Bit Digital, Inc. now retains ownership of roughly 71.5% of White Fiber. The IPO established White Fiber as a pure-play, independent AI infrastructure company. We own, operate, and develop high-performance computing data centers designed specifically for artificial intelligence workloads. One of our differentiators is that we control both layers of the infrastructure stack: the physical data centers and the GPU cloud resources that they host.

This integration enables us to develop reliable, cost-efficient, and scalable infrastructure directly to our customers while capturing value at multiple points in the supply chain. As a technical matter, today’s results cover the second quarter ended end of June 2025, which were already included in Bit Digital, Inc.’s consolidated financials. Because our IPO occurred in August, this 10-Q was required to bring White Fiber current with its SEC reporting obligations. Going forward, we will be on a regular quarterly reporting schedule. While the second quarter results reflect the early stage of our business, the most important development during the quarter was our acquisition of NC1, the data center property in North Carolina. This 1 million square foot site has significant power availability and expansion potential. It was a pivotal step in scaling our platform. It positions us to meet growing demand from enterprise and hyperscale customers for high-density AI infrastructure.

We have commenced the pre-construction phase at NC1 and remain on track to bring the initial 24 megawatt phase one online in the first quarter of 2026. We are in active discussions with multiple prospective customers, several of whom are seeking capacity beyond phase one, including interest in the full build-out of the site. At this point, we expect the initial contract to cover more megawatts than phase one. One customer recently shifted the base design to NVIDIA’s newest hardware. That required a recontracting process, but it’s positive; it aligns NC1 with the latest generation of hardware. We continue to progress with this customer and others in parallel. We remain confident that we will be able to formalize customer contracts for at least phase one in the coming weeks. Every week, it seems like we’re approached by a larger customer that has serious interest in the site.

That said, our priority is speed. We are not willing to draw out the process and allow for extended due diligence for new entrants. All counterparties we are engaged with are creditworthy and are advancing with structures that strengthen the financing profile of the site, including OEM backstops, security deposits, and escrow arrangements. These mechanisms improve our visibility on cash flow and support a lower cost of capital. We have formally launched a process for debt financing at the site, which will allow us to cost-effectively scale the remaining capacity of phase one in line with customer demand. In short, NC1 is a valuable strategic asset, and we are encouraged by the level of customer enthusiasm and demand to date. We continue to expect the capital requirements for building out the site to be approximately $8 million per megawatt.

CapEx timing tends to be back-weighted closer to when megawatts are approaching operational status. Turning to Montreal 3, we are in the process of bringing the site live and turning on equipment for Cerebras. The first batch of wafer-scale engines arrived on site this week, with additional shipments expected in the coming days. We expect to begin recognizing revenue under the contract in October. This project highlights the execution capability of our team. We signed a 5-megawatt IT load contract with Cerebras in February of 2025, but we did not take control of the Saint-Jérôme facility, which previously operated as a mattress factory, until late April. In under six months, we have completed a sophisticated custom retrofit and prepared the site for production. That timeline would have been notable for a standard build. For a deployment of this complexity, it is exceptional. We’re grateful that Cerebras entrusted us.

May someone please mute themselves. Thank you. We are grateful that Cerebras entrusted us with this project and look forward to supporting them for years to come. At Montreal 2, the deployment timeline has been adjusted as we prioritize other builds and preserve capital for more time-sensitive projects. Our original plan was to dedicate the site to White Fiber’s own GPU deployments. Ultimately, we determined that the prospective end customer for that use case did not meet our contract requirements. We have therefore opened the site to potential colocation clients, while keeping the option of a White Fiber GPU deployment in the future. We currently expect Montreal 2 to be activated in the first half of 2026, although we may accelerate or reprioritize the site based on any future customer developments. Having this operational flexibility is a key strength of White Fiber.

If we don’t have a long-term and economically viable opportunity on the cloud side, we can simply toggle the site for colocation. Ahead, our pipeline remains robust. We will continue to be opportunistic in expansion but disciplined in our capital allocation. With the volume of opportunities in front of us, we’re focused on being disciplined in our prioritization to ensure that we execute to the standards we have set for ourselves. As our capital base grows, particularly with the addition of debt financing, we will pursue larger scale opportunities. Our focus remains on driving value at our existing sites while setting the stage for our next deployments. We want to build upon our track record of retrofitting deployments on industry-leading timelines. Customer trust is non-negotiable in AI infrastructure, and we believe our ability to deliver reliably and quickly is a defining strength for White Fiber.

We also expect to layer in smaller customer-driven sites over the next 6 to 12 months. In some cases, customers engaged with us at NC1 have expressed interest in capacity in other regions where we do not currently have assets. Expanding selectively in such markets, guided by firm demand by customers, will remain a key element of our strategy. Turning to our cloud business, this remains a key driver of revenue for White Fiber. In the second quarter, cloud services generated $16.6 million in revenue, up 33% from the prior year, with gross margins of approximately 61%. Our cloud services run rate revenue is currently approximately $88 million, following the rolloff of some smaller contracts last week. This figure does not include about $3.5 million of additional run rate contract payments from our deployments with Boosteroid, which is reflected in other revenue in our financial statements.

The combined run rate is currently over $90 million for our GPU-related business lines. We also hold roughly 700 GPUs that are not yet under contract, including 576 H200s and a mix of B200s and GB200s. At market pricing, these assets represent approximately $15 million of annual revenue potential. In addition, we have an active customer pipeline and are in discussions on several larger opportunities that could commence later this year if awarded. Should we secure these, we would expect to finance the deployment with equipment financing. This is consistent with our approach of aligning capital deployment with specific customer demand rather than building speculative inventory. At the same time, we’re continuing to invest in our cloud software platform to deliver highly performant and reliable infrastructure. Combined with our ownership of the underlying data centers, this integration differentiates White Fiber from peers that focus solely on GPU cloud.

We want customers to choose White Fiber because of the performance and reliability of our solutions, not simply excess capacity, and we’re continuing to invest in R&D to support this goal. Our product roadmap is focused on delivering GPU clusters that exceed performance benchmarks and customer expectations. As an example, in the second quarter, we were the first to market with scheduled fabric Ethernet technology. This deployment resulted in a 30% performance improvement over industry benchmarks. This focus on technology leadership may also open the door to new capital-like business opportunities over time. Cloud is a key part of White Fiber. It generates attractive margins, builds long-term customer relationships, and provides recurring revenue that complements the scaling of our colocation business. I will now hand the line to Eric to discuss our financial results.

Eric Wong, Chief Financial Officer, White Fiber: Thank you, Sam. Total revenue for the second quarter was $18.7 million, an increase of 48% from $12.6 million in the same period last year. Cloud services generated $16.6 million in revenue, up 33% from $12.5 million a year ago. Gross profit was $10.1 million, representing a margin of about 61% versus $8 million and a 63% margin last year. Colocation services contributed $1.7 million of revenue and $1 million of gross profit, representing a margin of about 60%. We did not generate colocation revenue in the second quarter of 2024. We also recorded $0.3 million of other revenue, primarily from our deployments with Boosteroid, bringing total consolidated revenue to $18.7 million. Total gross profit was $11.5 million, an increase of 43% from $8 million in the same period of 2024. Operating expenses were $27.8 million compared to $10.2 million a year ago.

G&A was $15.5 million for the quarter, which included around $5.5 million of one-time milestone stock-based awards and certain non-recurring costs related to the growth of our business and preparation of becoming a public company. We expect normalized G&A to be lower on an ongoing basis, but are not prepared to issue discrete guidance at this time. That said, we have been increasing headcount and preparing the company for a significantly larger operation base. Some of the hires we have made will reduce consulting expenses we have incurred. Operating loss was $9.2 million compared to an operating income of $2.4 million in the same quarter of 2024. Net loss for the quarter was $8.8 million compared to a net income of $1.9 million in the same period last year. On a non-GAAP basis, EBITDA was negative $3.2 million compared to a positive $6.8 million a year ago.

After adjusting primarily for share-based compensation expense, adjusted EBITDA was positive $3.3 million versus $7 million in the second quarter of 2024. Turning to the balance sheet, we ended the quarter with $16.4 million of cash and cash equivalents. Property, plants, and equipment grew to $230 million as we expanded our data center portfolio and GPU fleet. Following the IPO, we added approximately $183 million in gross proceeds, which provides us with significant liquidity to support our development pipeline. We also signed a credit facility during the quarter, which remains undrawn. As of June 30th, we carried no debt on our balance sheet. Together, our post-IPO cash position and undrawn facility provide us with a strong liquidity base to fund the initial build-out of NC1 and support cloud growth. I will now hand the line back to Sam for closing remarks.

Conference Operator: Thank you, Eric. Before we open the line for questions, I want to thank our employees, customers, and shareholders for their support as we begin this next chapter as a standalone public company. While today’s results reflect a period before our IPO, they highlight the strong foundation we are building across both cloud and colocation. Looking forward, White Fiber is uniquely positioned as a pure-play AI infrastructure platform with both the data center and GPU cloud layers under one roof. We believe this integration gives us a competitive advantage and positions us to capture the current wave of enterprise and hyperscale demand. We are early in our journey, but the combination of a growing cloud services platform and rapid progress at sites like NC1 and White Fiber 3 demonstrates our ability to execute across the entire infrastructure stack.

We look forward to updating you very soon on our continued progress when we report our first full quarter as a public company in November. Our mission is simple: build the best AI infrastructure, build faster and cheaper with our retrofit strategy, meet customers wherever they are, and create lasting value for shareholders. With that, operator, please open the line for questions. As a note, Ben Lampson, Head of Revenue, and Billy Kraskopulis, President of White Fiber, will be present for Q&A. Please open the line.

Conference Operator: Thank you. If you would like to signal with questions, please press 1 on your touch-tone telephone. If you’re joining us today using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, that is 1 if you would like to signal with questions. Our first question will come from Darren Optaye with Roth.

Hey, guys, thanks for taking my questions and congrats on the IPO. Two, if I may, just during the roadshow, you guys talked about pipeline power on the colo side and various sites. I’m just kind of curious. Sam, you talked about multiple parties interested in North Carolina. If those other parties don’t get that, do you guys have stuff that is more kind of line of sight in that pipeline? My second question, Sam, I know you use the word formalized in the coming weeks on North Carolina. What exactly does that mean? Does that infer, like, a formal lease or just any more color on that would be great? Thanks.

Sam Tabar, Chief Executive Officer, White Fiber: Yeah, thank you for that. Billy, do you want to take some of those questions? I’m happy to add on.

Billy Kraskopulis, President, White Fiber: Sure thing. Thanks, Darren. We have several highly interested parties that we’re engaged with on North Carolina. Given their timelines, there isn’t much room left to finalize these contracts and still meet their deployment schedules. As a result of that, things are moving quite quickly, and we expect clarity on commitments in the very near term. We’re not just waiting for one customer anymore. There are multiple that are interested, and they all understand that they need to move quickly. We can’t afford to let any single customer draw out the process when we have others that are ready to move. Some news on what’s happened with these interests: one customer, for example, doubled the amount of capacity that they had signed in their initial LOI. Another one pivoted to the latest unreleased NVIDIA hardware.

Another one signaled that they would like an additional deployment in another market that we’re not even in yet, right after we would deploy for them in North Carolina. It was contingent on a North Carolina deployment. These things take a little bit of time to close, redoing technical plans and financial contracts when the capacity changes on such a high level. Just take a little bit of extra time to close these contracts. All of them are aware their timelines are all Q1 2026, and pen to paper needs to be done quite quickly to accomplish that.

Sam Tabar, Chief Executive Officer, White Fiber: Greg, any commentary on the aggregate pipeline beyond North Carolina?

Billy Kraskopulis, President, White Fiber: We’re looking at sites in Arizona, Texas, the state of New York. We are looking at another site in North Carolina as well. Given the timelines, these are still in early stages of development. It would be quite difficult for them to work on any potential client that would not get the first phase or the entirety of North Carolina. The prospects that we have for North Carolina are really all looking for a Q1 2026 delivery.

Sam Tabar, Chief Executive Officer, White Fiber: It’s probably worth mentioning also, Billy, the pipeline of facilities that you’re looking at that are not necessarily marketed as data centers. If you want to unpack that a little bit, I think that might be helpful.

Billy Kraskopulis, President, White Fiber: Sure. I think the fact that one of the customers that we’re speaking with is looking for us to build for them in another market that we didn’t even have on our radar after we pitched them the North Carolina project goes to show how much they value our speed in our retrofit model, which is quite important in today’s times.

Sam Tabar, Chief Executive Officer, White Fiber: To add to that, we do build two times faster and 40% cheaper. We have a track record of that. In fact, we’re handing over the keys to Cerebras as an example of that in just a few days. We bought that. That was a mattress factory once upon a time. We took that over, I think it was in April, I believe, Billy. Is that correct?

Billy Kraskopulis, President, White Fiber: End of April, yeah.

Sam Tabar, Chief Executive Officer, White Fiber: End of April, and we’re able to convert that into a tier three data center for one of the most demanding hardware clients out there in the world, Cerebras. Those keys are being handed over extremely shortly, in days. That’s just an example of how we do things very differently from others in this space. We are winning business because of that track record and because of that ability. Time is extremely expensive for these clients. They don’t want to wait around for greenfield builds. Billy and his team are able to build these things using the retrofit model while the others are still waiting for the concrete to dry. It’s really important for clients. That is why we’re getting a lot of this very enthusiastic business interest because of that particular model that we have. I just think it’s worth mentioning that.

Billy Kraskopulis, President, White Fiber: Appreciate it. Thanks, Sam. Thanks, Billy.

Conference Operator: The next question will come from Nick Giles with B. Riley Securities.

Thank you, operator. Good afternoon, everyone. I just wanted to first follow up on NC1. There seem to be some kind of higher credit quality parties entering the conversations. Do you have a rough deadline in mind of when you’ll cut off inquiries? Have you done so already? My main question is really what aspect of the deal is really driving the conversation today. Is this around overall scale, price, timing? Appreciate any additional color there.

Sam Tabar, Chief Executive Officer, White Fiber: Billy, you want to take that one again? I’ll add some context if I feel necessary.

Billy Kraskopulis, President, White Fiber: Sure thing. Nick, it’s a mix of all of those points. Change in technology on one prospective client’s end changes the base of design and changes the base price point. You touched on creditworthiness. A lot of these customers have different grades of creditworthiness in our books. We are not taking on any new inquiries to this site. We are actively engaged with a handful of parties right now and just moving along that process.

Sam Tabar, Chief Executive Officer, White Fiber: I’ll just say it, we’re at the horse race between three right now. We’re going to optimize for the best. Go ahead, Billy.

Billy Kraskopulis, President, White Fiber: We’re still aiming to deliver in Q1, end of Q1 2026. There will be an eventual cutoff point where the party that’s not as far along as the others will probably have to drop off.

Sam Tabar, Chief Executive Officer, White Fiber: Very helpful. Just one follow-up on that. Nick, I think you also asked, there are some who are trying to upsize the megawatt to take the whole thing. If you want to ask a more specific question about that, go ahead.

Conference Operator: Exactly, Sam. That was really my follow-up. I think you made some comments around the 24 and the 40. I was wondering in those conversations if you’re having any that could include all 99 and if you could really remind us of what would be required from the energy provider to reach that level. Thanks very much.

Sam Tabar, Chief Executive Officer, White Fiber: Yeah, Billy, you want to take that? I’ll add context if necessary.

Billy Kraskopulis, President, White Fiber: Sure. Yeah, we did have one party initially contract for 20 and then ask for the full 40, and another one asking for the full 99. There are conversations happening with the utility provider, assurances on timeline for them to deliver for us and for us to deliver to the end user. That’s what’s really delayed the process on those two specific cases.

Sam Tabar, Chief Executive Officer, White Fiber: Got it. Guys, thanks so much for the update. I’ll jump back in the queue, but keep up the good work. I just want to also mention you didn’t ask, you sort of touched on it, Nick. I just want to give some more information with respect to the quality of the counterparties. They are extremely high. They’re creditworthy. Of the three, in my personal opinion, there is one in particular that, I mean, they’re all very exciting, but we are just trying to optimize for the best counterparty because that has a cascade effect on credit facility and so on. This is a question of optimizing the best for our situation. This is a question of weeks and not months. I just wanted to give some more color on the tension that’s happening. These are happy tensions for us. These are champagne problems.

We understand the market is impatient, but we do want to get the very best customer announcement.

Conference Operator: Understood, Sam. Thanks again. We’ll take a question from Brian Dobson with ClearStreet.

Thanks very much. Good evening and congratulations on the successful IPO. As you’re looking at additional data centers, you had mentioned that you might be looking at larger projects or smaller projects. Do you think that you can walk us through what the returns on those types of products might be? Are they roughly similar between large and small? How would you characterize the different types of clients that are looking for, call it large versus small? Are they household names or is there any kind of color you can give us there?

Sam Tabar, Chief Executive Officer, White Fiber: Billy, you want to take that?

Billy Kraskopulis, President, White Fiber: Sure. The household names are usually for the larger projects. We tend to balance where we look at next, mostly through customer demand. The smaller ones are still AI-based, AI users, but deploying more of their own private infrastructure, like the example that I mentioned before for North Carolina. We’ve got a user speaking for 20 megawatts of North Carolina, but contingent, we deliver them shortly thereafter another 20 megawatts in a market that we were not even looking at. It is really based on customer, driven by customer demand and balance of available capital, depending on the size of the project, right?

Sam Tabar, Chief Executive Officer, White Fiber: Billy, is it fair to say that the smaller sites are juicier in economics, but probably less in stature on the counterparty name? Still well known, but not like elite, but the economics are cheaper with the smaller morsels, as it were, compared to the bigger sites?

Billy Kraskopulis, President, White Fiber: Exactly, and a bit of low-hanging fruit in the short term, but the smaller sites, like part of our due diligence process when selecting these properties, are how much power is available now, but a pathway to more power in the future. Even if we were to select a small site right now, it’s because the power is available there immediately. One of the checkboxes is, is there a pathway to more power so we can maximize and squeeze that site as much as possible?

Sam Tabar, Chief Executive Officer, White Fiber: Thanks.

Yeah, thanks very much for that clarity. There’s been some very exciting news regarding AI data center demand over the past few weeks. As you’re looking out through 2026 and 2027, I guess what gets you most excited about growth in the industry?

Billy Kraskopulis, President, White Fiber: We think.

Sam Tabar, Chief Executive Officer, White Fiber: Go ahead, Billy. Go ahead.

Billy Kraskopulis, President, White Fiber: This industry, the data center industry specifically, it’s always been a build it and they will come business up until about a year, year and a half ago. That’s when the flood of requests, significant inbound requests from prospective AI customers, started. I mean, that’s really exciting. Finding the right site for the right customer is also an exciting challenge for us.

Sam Tabar, Chief Executive Officer, White Fiber: I want to add to that. We’re slowly getting a reputation in the market for, again, establishing this track record of building two times faster and 40% cheaper using this very specialized approach that we have. A lot of these facilities that Billy and his team are looking at are not even marketed as data centers. We’re able to get these facilities for not the premium that is normally charged when they’re marketed as data centers. Once Billy and his team get their hands on these facilities, they’re able to convert that into tier three data centers, just like that mattress factory that is now a tier three data center for Cerebras with revenue recognition, I think, happening next month. That’s just another example. Billy and his team have been doing this for many, many years before we acquired them last October. That acquisition was very strategic.

What excites me is that a lot of people are starting to now understand that greenfield builds have massive execution risk and the retrofit model is only possible through many years of experience, of trial and error, of a proven approach in doing this successfully. People are realizing that White Fiber is the answer for that because time is of the essence and time is not the friend of technology. You have to get these technologies online to extract value. They see that the retrofit model being two times faster with a track record of that, they see that that has a lot of value and they come to us. That excites me about that reputation going around the market. We’re seeing that in action already.

Yeah, thanks. That’s great color. You should put 2x faster and 40% cheaper on a hat and wear it around. Thanks a lot.

That’s actually a great idea, Cameron. Let’s make sure we get hats for that.

Conference Operator: Our next question will come from George Sutton with Craig Holland.

Thank you. I wondered if you could talk about the contract requirements that didn’t meet your needs at Montreal 2. I mean, are we talking as simple as price, or is there something else to be aware of?

Cameron Schneer, Senior Vice President of Capital Markets and Corporate Strategy, White Fiber: Yeah, George, Ben Lampson here. Honestly, go ahead. It was a combination of price and term, but predominantly term. You know, as we’ve discussed in the roadshow, we’re really focused on private cloud deployment and on-prem as a service, and identifying customers that can’t and won’t put their workloads in the public cloud. For these shorter-term customers or shorter-term contracts, if we wanted to pursue those, we’d really just be pursuing being another public cloud, which is not the arena that we see the biggest opportunity in.

Gotcha. Relative to the 700 GPUs that are not under contract, I’m curious, are you marketing that as a single deal? Are you prepared to move to an on-demand service offering if not?

Great question. It’s a mix of both. They’re not in a single cluster; they’re across a few different clusters. They’re scattered. Some of those are actually getting put on demand. We’re excited about some opportunities we have there with some partners. Some of them are, we’ve got some long-term contracts in the pipeline for a large chunk of those as well. It’ll be a blend. We don’t suspect that we will have that much free capacity for long.

Gotcha. One other question, if I could, for Billy. Hypothetically, if you get this customer that wanted the 20 megawatts in North Carolina, wants 20 megawatts somewhere else, can you just talk about what the contract like that, what kind of risks do you have, and do you need to find the site and then develop out the site and go through the regulatory process, or just walk through kind of that dynamic if that ends up being the deal you take?

Billy Kraskopulis, President, White Fiber: Sure. We work hand in hand with the customer on selecting the site in this specific scenario. We would do our due diligence and make sure that the site meets all of our requirements. The client would sign off on the site. Once they’re contracted, part of our KYC with the client is a really deep credit check, security guarantees, OEM backstops. We wouldn’t go into a market that we didn’t think we could expand into. The initial phase would be 20 megawatts. We would work on expansion with whichever utility provider would be in the area and make sure that we can expand and either help this customer grow into that facility or find other customers to fill the remaining capacity that we would get.

Gotcha. I understand. Okay, thanks, guys.

Thank you.

Conference Operator: Thank you. Moving on to Paul Golding with Macquarie Capital.

Thanks so much. Congratulations on the listing. I wanted to ask on the financing that you are already in conversations on with respect to build-out and CapEx, funding the CapEx. I wanted to ask with the deposit, escrow, and other backing that these counterparties have been offering in these negotiations, could you give us some color around how the cost of capital for project financing is developing midway through these conversations? How much is the creditworthiness and these escrow components and other offerings contributing to those conversations with lenders and delivering a more efficient cost of capital model for your retrofit? I have a follow-up. Thank you.

Unidentified Finance Team Member, White Fiber: I can talk about the financing. We have secured a credit facility with RBC, but that’s for the Montreal site. For the financing process for North Carolina 1, we had engaged the JOL Capital Markets and recently launched a debt raise for securing the financing and build-out of that site. We’re still early in the process, given the fluid nature of these discussions, but initial interest has been very strong. More specifically, we have seen significant depth and liquidity in the lending universe. The interest expands in commercial real estate lending markets, insurance company capital, private credit, digital infrastructure funds, and pure play project finance banks. North Carolina is quite unique, given the in-place power of 100 megawatts, but also near-term expansion of another 100 megawatts.

This provides tenants the opportunity to grow within the facility, and also gives lenders the opportunity to create a relationship with our team and a clear path to additional business. Regarding specific terms, we anticipate financing in a range of 75% to 80% loan-to-cost. The debt will find an immediate feed-out, but we are also targeting a future funding facility of recording that we provide White Fiber with immediate access to capital to build out additional capacity as the leases are signed. It’s too early right now in JOL’s process to point on pricing, but we anticipate it to be in line with the recent deals, higher 200 bps over SOFR or 300 over SOFR. Those are the markets we’re looking at.

Thanks so much for that call. I really appreciate that. Maybe a question for Ben on the cross-data center cloud offering that is part of the productized offering suite of products that you’ve been discussing with counterparties. How is that product evolving? Could you give us an update on whether there’s any early interest if you’re marketing that at all or still waiting to further progress in developing that product? Thank you.

Conference Operator: We are not currently marketing that. It is still very much in the R&D phase. We want to get a little further along with some of the results on that or get closer towards publishing a paper on that before we start to market it. I think that’s going to be really, really important from what we’ve seen in the past, getting that paper out. We have narrowed in on a site for that that we’re really excited about, and we’re progressing with that process. We’re still targeting early next year for the publishing of that paper and for that technology to be live.

Great. Thanks so much.

The next question comes from John Tadaro with Needham & Company.

Thanks for taking my question and congrats on the progress out of the gates. Just going back to if some of these contracts are upsized, the ones at North Carolina phase one, it sounds like that NC1 phase one, we should expect bigger than the 24 megawatts. As you think, if the counterparty does sign for the full 99, what would be the timeline for that? I imagine it would be a little bit further out than Q1 2026. I have a follow-up related to that.

Billy Kraskopulis, President, White Fiber: Sure thing, Don. Initially, there were 24 megawatts available at that facility, and 44 coming online early Q2 of 2026. We’re in talks with Duke Energy to bring that up a little bit forward to meet the initial demand of doubling capacity from 20 or so to almost 50 megawatts. The remaining 99 right now is looking like it’s about two years out.

Got it. Looking two years out. Okay. I believe it was also mentioned a change in the base price point. I would interpret this as potentially better rental economics than some of us were kind of initially expecting and targeting. I believe we were thinking, call it $2 million per net critical megawatt or about $1.6 million, I think, on a gross basis. Is the thinking that you could get even better rental economics than that now?

It is. It’s slightly higher, but it could be offset by a higher build cost. Because of this new technology, the build cost would be incrementally higher, but we offset it with an increased price per megawatt.

Got it. Understood. You’re saying, would we expect incrementally higher than the $8 million per megawatt in the build cost, or does the $8 million include that kind of higher, potentially higher build cost?

It does not include the potentially higher build cost. That is one of the delays with closing one of these LOIs. It is really limited information on the installation specifications of this new hardware from NVIDIA.

Oh, understood.

as CEO of White Fiber.

Sorry, no, please go ahead.

We’re basing the new cost and the new financial terms on the contract of the information that we have right now and the build specifications that we’re getting from the client.

Got it. Okay, that all makes sense. Thank you. Thank you, gentlemen. Appreciate it.

Thank you.

Conference Operator: The next question will come from Nick Giles with B. Riley Securities.

Thanks so much for taking my follow-up. I just wanted to clarify on Montreal 2. Can you just remind us what customers will ultimately be filling that capacity if you look to put your GPUs elsewhere or hold off on incremental contracts? Thanks.

Sam Tabar, Chief Executive Officer, White Fiber: I’m happy to take that. We originally envisioned Montreal 2 to be a flagship site for White Fiber GPUs. We advanced discussions with a specific customer over an extended period, but over time, their contractual requirements shifted and no longer really aligned with our underwriting criteria. Things like duration, prepayments, and overall financeability were factors for us. Rather than hold the space while we searched for another GPU fit, we made the decision to open Montreal 2 for colocation opportunities. The site could have been operational months ago had we prioritized it, but without the right contractual foundation, it just didn’t make sense to us. We are now in discussions with customers on a colocation business while also remaining open to housing a cloud customer there.

Our current target to bring that site online is going to be in the first half of 2026, with the option to accelerate depending on demand.

Got it. Thank you very much. I really appreciate that.

Conference Operator: At this time, there are no further questions. I now turn the conference back over to you.

Sam Tabar, Chief Executive Officer, White Fiber: Thank you all once again for your time today. It is worth mentioning again that I would like to thank our shareholders for their confidence in us. We are executing, and we look forward to making certain announcements in the very near-term future. Thank you for your trust in us and your patience, and we look forward to next time. Thank you very much, everybody.

Conference Operator: Thank you. That does conclude today’s conference. We do thank you for your participation. Have a nice day.

Goodbye.

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