📊 Key Financial Highlights – Q3 Fiscal Year 2025:

📊 Key Financial Highlights – Q3 Fiscal Year 2025 (Ended February 28, 2025)

🟦 Revenue

Total Revenue: $52.9 million

Growth: +22% YoY (vs. $43.3M in Q3 FY2024)​

​

Segment Breakdown:

Cloud Services: $17.8 million

↑ 220% YoY (from $5.6M)

↓ Sequentially from Q2 FY2025 ($27.7M) due to technical issues & contract model shift

Data Center Hosting: $35.2 million

↓ 7% YoY (from $37.8M)

HPC Hosting: Revenue not yet recognized (Ellendale build-out still underway)

🟥 Profitability

GAAP Net Loss Attributable to Common Stockholders:

Q3 FY2025: $36.1 million or $0.16/share

Q3 FY2024: $62.8 million or $0.52/share

Adjusted Net Loss (Non-GAAP): $17.8 million or $0.08/share

Adjusted EBITDA: $10.0 million profit

Compared to ($1.3M) loss in Q3 FY2024

🟧 Costs & Expenses

Cost of Revenue: $49.1 million (+4% YoY)

SG&A: $22.7 million (↓ 24% YoY, due to reclassification of depreciation)

Interest Expense: $8.9 million (↑ 87% YoY, due to increased financing activity)

💰 Balance Sheet Snapshot (as of February 28, 2025)

Category Figure

Cash, Cash Equivalents, Restricted $261.2 million

Total Debt (incl. long-term) $689.1 million

Property & Equipment, Net $1.0 billion

Total Assets $1.71 billion

Stockholders' Equity $454.6 million

Working Capital (current liabilities – current assets) ~($119.3M) (Deficit)​

🔶 Flag for Review: The company disclosed that it previously had substantial doubt about its ability to continue as a going concern — though it claims this has now been alleviated due to capital raises and asset sale plans​.

🏗️ Strategic & Operational Developments

📌 Data Center Build-Out

Ellendale HPC Campus (North Dakota):

100 MW facility under construction; 369,000+ sq ft

Operational by 2H 2025

Ongoing discussions to lease up to 400 MW with U.S. hyperscalers

💼 Cloud Services Division

Q3 Revenue: $17.8M

Performance impacted by a shift from single-tenant to multi-tenant GPU allocation

Sale of this segment approved by Board (April 2025)

🔶 Flag for Review: The shift in cloud GPU contract structure led to a revenue drop. Claims that technical issues are now resolved should be validated in next quarter’s performance.

🧾 Debt and Capital Activity

Instrument Details

SMBC Loan $375M, supports Ellendale buildout

Senior Unsecured Convertible Notes $450M due 2030, carries dilution risk

Yorkville Prepaid Advances (Repaid) $92.1M issued and largely converted to equity or repaid​

Preferred Equity Issuances Series E and E-1 raised ~$43M; some converted to common shares.

🔶 Flag for Review: The combination of convertible debt and SAFE agreements introduces equity dilution and structural complexity.

🚀 Growth Outlook & Strategy

Cloud Services divestiture intended to streamline operations and improve liquidity

Pursuing a REIT structure long-term, conditional on operational focus

Large-scale capacity leasing negotiations in progress—execution could transform earnings profile.

🔶 Flag for Review:

The scale of growth projections is dependent on signing 400 MW of hyperscaler leases, which is not yet finalized.

Management also signals a transition to REIT, which has regulatory and operational prerequisites not detailed in the filings.

📉 Customer Concentration & Risk Exposure

Customer A accounted for 66% of total revenue in Q3 FY2025

High dependency could affect cash flow stability if relationship changes

🔶 Flag for Review: Customer concentration is a material risk. Management should disclose more on contract durations, pricing, and renewal likelihood.

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