QumulusAI, Inc.

What they do

QumulusAI operates colocation data centers in Marietta, Georgia; Kansas City, Missouri; Denver, Colorado; and Philadelphia, Pennsylvania, with combined deployed and contracted capacity of approximately 8 MW of power. It sells HPC compute for AI training and inference and also operates managed crypto-mining infrastructure and blockchain asset management. It reaches customers directly and through marketplace partners such as RunPod Inc.

Revenue drivers

• HPC compute — GPU-based compute sold to enterprise machine learning teams, AI infrastructure startups, and research institutions; roughly 76% of revenue in the six months ended June 30, 2026.
• Blockchain mining and managed services — Blockchain-related revenue, including managed services for crypto mining infrastructure and blockchain asset management; approximately 24% of revenue in the six months ended June 30, 2026.
• Third-party hosting — Hosting capacity for third-party clients, which management expects to decline as existing contracts expire and are not renewed, with freed capacity shifted to HPC compute.

Recent performance

Q2 2026 revenue was $6.7 million, up 118% from $3.1 million in Q2 2025. Compute power revenue rose to $5.6 million, or about 84% of total revenue, from $1.3 million. Gross margin expanded to 67% from 55%. Operating loss widened to $7.7 million from $2.2 million, driven by a $5.8 million increase in depreciation and amortization. Net loss was $22.8 million versus net income of $12.1 million, including a $19.2 million non-cash loss on issuance of convertible notes.

Strategy

QumulusAI is repurposing crypto-mining infrastructure for AI workloads and plans to move hosting capacity into HPC compute as legacy contracts expire. It signed 21 new direct contracts in Q2 2026 with expected take-or-pay value of $169.7 million, and contracted up to 3.75 MW in metropolitan Atlanta. The company reports cumulative signed customer contract value of $282.5 million and is planning expansion exceeding 120 MW of total IT load. It is building a vertically integrated stack across HPC cloud services, data center infrastructure and hosting, and power and energy integration.

Risks

• Customer concentration transition — Direct customer relationships were more than 96% of the recurring revenue base at Q2 2026 quarter end, versus less than 10% a year earlier, after moving away from dependence on a single marketplace.
• Negative equity and leverage — At June 30, 2026 total liabilities of $215.8 million exceeded total assets of $215.0 million, leaving shareholder equity of negative $3.6 million.
• Rising depreciation and losses — Operating loss widened to $7.7 million in Q2 2026 from $2.2 million a year earlier, with a $5.8 million increase in depreciation and amortization tied to expanded HPC infrastructure.
• Hosting revenue runoff — Management expects third-party hosting revenue to keep declining as customer contracts expire without renewal, requiring HPC compute to replace that revenue.

Outlook

Management says demand is not the constraint and that deploying capacity faster than competitors is the goal. It expects blockchain mining income to continue during 2026 while HPC compute becomes a larger share of total revenue. It plans to deploy additional HPC infrastructure and allocate more active power capacity to HPC workloads, which management believes will generate higher revenue and gross profit per megawatt than traditional blockchain hosting.