WYFI Q2 Earnings Call Focuses on NC-1 Ramp and Cloud Expansion

WYFI Moves NC-1 Toward Full Billing

Samir Tabar, chief executive officer, said about 20 megawatts of IT capacity at NC-1 was available for customer installation and testing. Initial billing had started, with the full 40 megawatts expected to reach run-rate billing by the end of August.

Tabar said switchgear-related commissioning issues had been resolved and the economics of the 10-year agreement, representing about $865 million of contracted revenue, were unchanged. He also said proposed NC-1 secured financing had reached lender exclusivity.

The company incurred second-quarter adjusted loss of $0.39 per share, narrower than the Zacks Consensus Estimate of a loss of $0.50. Revenues rose 54% year over year to $28.8 million, surpassing the Zacks Consensus Estimate of $18.40 million.

WhiteFiber Builds Cloud Contract Visibility

Tabar said WhiteFiber signed more than $540 million of multi-year cloud services agreements since its May earnings call. Contracts signed to date are expected to generate more than $200 million of annualized cloud revenue when fully deployed.

The commitments include a three-year, roughly $165 million Base 10 deployment targeted to begin in November and a three-year, approximately $108 million Prime Intellect Vera Rubin deployment targeted for the second quarter of 2027.

Tabar also highlighted the Paris deployment, with contract value above $160 million and a Sept. 30, 2026, ready-for-service target, plus a five-year Iceland agreement valued at approximately $87.5 million.

WYFI Leans Into Capital-Light Cloud Growth

Michael Francisco, vice president of Cloud Services, said WhiteFiber evaluates cloud deals at the project level, focusing on positive cash flow and limiting company capital. Customer prepayments can reduce upfront funding needs.

Francisco said managed services could extend that model because customers would fund hardware and data center capacity while WhiteFiber handles deployment and operations. He described the margin profile as closer to software than hardware.

Tabar said WhiteFiber also secured exclusive access to 100 megawatts of liquid-cooled colocation capacity through Krambu beginning in 2027, providing a pathway to additional deployable capacity.

WhiteFiber Pushes the Next Data Center Site

Tabar said one late-stage opportunity could support about 60 megawatts in 2027 and scale beyond 250 megawatts. WhiteFiber was negotiating a purchase agreement while completing final diligence.

Billy Krassakopoulos, WhiteFiber president and Enovum CEO, said the approach resembles NC-1: enter an existing building, retrofit it quickly and match the site with customer demand.

Tabar also said Duke Energy is expected to provide a schedule for another 45 megawatts of gross NC-1 capacity. A longer-term 200-megawatt opportunity could take the campus toward 300 gross megawatts.

WYFI Q&A Tests Capacity and Networking Plans

A B. Riley analyst asked about demand for NC-1’s next tranche. Tabar said interest was strong, but WhiteFiber must first notify Nscale under the existing agreement before deciding how to market the capacity.

A Compass Point analyst asked whether WhiteFiber’s cross-data-center technology could support training as well as inference. Francisco said the system is being developed for multiple use cases and has been tested with demanding training workloads.

A Cantor Fitzgerald analyst asked about commercialization. Tabar said the technology could serve WhiteFiber internally or be licensed, while Francisco said hub-and-spoke testing will determine how broadly the network can scale.

WhiteFiber Keeps Execution at the Center

Tabar’s closing message centered on execution and capital discipline. He tied further expansion to advantaged power, credible customer demand, financeable contracts and completing the proposed NC-1 secured financing.

The next milestones are operational and funding-related: complete the NC-1 ramp, advance permanent financing, execute signed cloud deployments and move the next data center opportunity toward a definitive agreement.

WYFI Zacks Signals Remain Cautious

WYFI currently carries a Zacks Rank #3 (Hold). Its Value, Growth and Momentum Scores are all D, while its VGM Score is F, indicating weak readings across the style factors used alongside the Zacks Rank. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Style Scores run from A to F, with A and B representing stronger characteristics. The framework notes that Zacks Rank #3 stocks may be held, while A and B Style Scores rank above D and F. The Zacks Rank can change as earnings estimates are revised after the just-reported results.

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