WhiteFiber sales jump 31% as AI data center expansion accelerates

WhiteFiber (NASDAQ:WYFI) reported strong top-line growth for the first quarter of 2026, driven by a surge in demand for AI-focused high-performance computing (HPC) and colocation services.

While the company posted a net loss reflecting heavy infrastructure investment, management highlighted a record backlog and the imminent launch of its flagship North Carolina data center.

WhiteFiber announced Thursday that revenue for the quarter ended March 31, 2026, reached $21.9 million, a 31% increase over the $16.8 million recorded in the prior-year period.

The growth was led by the cloud services segment, which contributed $16.8 million, while colocation revenue more than doubled to $4.8 million as the company’s newly operational MTL-3 facility in Montreal began generating revenue under its agreement with Cerebras.

Despite the revenue gains, WhiteFiber reported a net loss of $12 million, or $0.31 per share.

The loss was attributed to a doubling of operating expenses, primarily driven by depreciation and G&A costs associated with the rapid build-out of its data center footprint.

Adjusted EBITDA for the quarter remained positive at $3 million, and the company maintained a high gross margin (excluding depreciation and amortization) of 60.2%.

A key highlight of the report was the disclosure of $921 million in remaining performance obligations (RPO) for colocation services, providing long-term revenue visibility.

This backlog is anchored by a 10-year, $865 million agreement with Nscale for capacity at the NC-1 facility in North Carolina, which is on track to begin billing in the second quarter of 2026.

Additionally, the company recently secured a two-year, $17 million contract with Hyperbolic to support Modal Labs' decentralized AI efforts.

To fund its aggressive expansion—including a 1,500 MW development pipeline—WhiteFiber strengthened its liquidity position during the quarter.

The company successfully closed a $230 million convertible senior notes offering and secured new credit facilities.

As of March 31, the company held approximately $80.1 million in cash and restricted cash, with total assets rising to $796.3 million.