WhiteFiber (NASDAQ:WYFI) executives used the company’s fourth-quarter 2025 earnings call to highlight progress scaling its data center platform, provide an update on the buildout and financing of its NC-1 project, and outline a strategic repositioning of its cloud business toward longer-duration enterprise deployments.
Platform milestones: Montreal 3 online, NC-1 contract details updated
CEO Sam Tabar said 2025 was “a pivotal year” for WhiteFiber, marked by its IPO and its transition to operating as a standalone public company while continuing to scale infrastructure.
Tabar also said WhiteFiber is in the process of exercising its purchase option for Montreal 3 for approximately CAD 24 million, funded through its Royal Bank of Canada facility, which he said is expected to reduce lease payments by about CAD 3.1 million annually over the remaining term.
On NC-1, Tabar reiterated the company’s previously announced agreement: in December, WhiteFiber signed a 40-megawatt IT load colocation contract with Nscale, with a 10-year term and approximately $865 million of contracted revenue inclusive of escalators and installation-related services. The 40 MW is scheduled to be delivered in two 20 MW phases. Management said customer-driven design modifications through a change order pushed the initial ready-for-service timing by about one month, with the full 40 MW now scheduled for a May 31 ready-for-service date. Management emphasized the associated costs are covered through non-recurring charges under the contract.
Construction progress and customer credit profile at NC-1
Management characterized NC-1 as “materially de-risked,” citing core infrastructure progress, on-time vendor deliveries, generators already on hand, and remaining work largely focused on fit-out. Tabar also noted the company did not take control of the NC-1 site—a former textile manufacturing facility—until late May 2025 and began pre-construction in the third quarter, but moved from initial discussions with Nscale in October to a signed agreement in December.
Tabar said Nscale has since executed an offtake agreement with an investment-grade hyperscale customer supporting the deployment. He said that end-customer presence strengthens the credit profile of contracted cash flows and is expected to expand financing options and improve financing flexibility as WhiteFiber works through the NC-1 financing process.
During Q&A, company president Billy Krassakopoulos said the recent change order was driven by the customer’s offtaker seeking “optionality” in how networking is delivered. He said it is primarily a physical layout change, not related to NVIDIA architecture, and it does create CapEx changes that are “primarily passed on” to the company’s customer.
Pipeline priorities: additional NC-1 capacity, power expansion, and another site in 2026
Tabar said WhiteFiber is evaluating more than 1 gigawatt of power across its development pipeline, with demand ranging from 5 MW to 20 MW urban deployments to multi-hundred-megawatt campuses. Krassakopoulos added in Q&A that even hyperscale customers are looking at smaller deployments in specialized urban markets, and said WhiteFiber’s ability to deliver retrofit projects quickly is driving interest.
Management outlined near-term priorities for the data center segment:
- Bring NC-1 online and move the facility toward stable operations.
- Establish a long-term financing structure as the project approaches stabilization.
- Market the next tranche of capacity at NC-1 beyond the initial 40 billable MW, with more visibility expected around mid-year.
- Continue discussions around expanding total power capacity at NC-1 and evaluate behind-the-meter solutions.
- Advance the next site in the development pipeline, with an objective to bring at least one additional site and customer deployment forward during 2026.
On power at NC-1, Krassakopoulos said the company has a commitment to serve from Duke Energy and is working through delivery milestones related to equipment availability and scheduling for a substation upgrade on WhiteFiber’s property. He later clarified the initial 40 MW Nscale contract is fully supported by existing Duke power, while additional power to expand beyond that (described as moving from roughly 54 MW of gross power supporting the initial buildout to about 100 MW total) is tied to a later upgrade timeline, which he referenced as “late 2027 type delivery.”
Krassakopoulos also said WhiteFiber reserves production slots for certain long-lead-time equipment that is largely site-agnostic and can be deployed across locations.
Cloud segment pivot: enterprise focus, near-term revenue dip expected
Tabar said WhiteFiber is shifting its cloud segment away from commodity bare metal leasing and toward enterprise deployments and managed infrastructure services, with capital discipline prioritized in order to fund colocation expansion. As part of the repositioning, he said the company monetized about 1,000 H200 GPUs for roughly $26 million at a price close to cost, describing it as a way to redeploy capital into newer-generation infrastructure.
Management also disclosed that its “first customer” decided to transition away from contracts in favor of more flexible cloud consumption, triggering a termination fee of about 40% of the remaining contract value. Tabar said the company had already redeployed that capacity into new agreements, including a two-year contract with approximately $50 million in total revenue, and also placed B200 and GB200 capacity across multiple counterparties representing about $13 million of annualized revenue. In Q&A, management said the H100 replacement agreement begins revenue in mid-April and that B200 capacity was redeployed across two counterparties, with one contract running two years at roughly $8.4 million annually and another running one year at about $3 million annually.
As a result of these changes, management said roughly 80% of monthly recurring revenue is now under contract with a weighted average remaining duration of about 22 months. The company’s pro forma GPU fleet totals about 3,700 GPUs across multiple NVIDIA architectures, with most deployed under contract and a smaller portion reserved for R&D and future enterprise deployments.
However, Tabar said WhiteFiber expects cloud revenue to decline in the first half of 2026 due to hardware lead times and enterprise ramp cycles, with expected first-quarter revenue of approximately $16 million to $17 million and April as the low point. Management said revenue is expected to begin ramping in mid-second quarter and accelerate through the year, with the potential for a “meaningful ramp” in the second half depending on the timing of larger enterprise deployments.
Financial results, liquidity, and financing timeline
CFO Erke Huang reported fourth-quarter revenue of $23.6 million, compared with $20.2 million in the third quarter. Cloud services revenue was $19.3 million, up from $18.0 million in the prior quarter, while colocation revenue was $3.9 million, up from $1.7 million, driven primarily by Montreal 3 coming online and the start of revenue from the Cerebras colocation contract (a partial quarter).
Huang said gross margin excluding depreciation improved to about 61% versus about 52% in the prior-year period referenced on the call. Depreciation expense was $8.1 million, up from $6.4 million in the prior quarter, primarily due to Montreal 3. General and administrative expense was $11.4 million, down from $21.3 million in the third quarter, which included higher public company transition costs. Huang said first-quarter G&A is expected to be slightly higher than the fourth quarter due to increased headcount and platform expansion.
Operating loss for the quarter was $5.4 million versus $14.5 million in the prior quarter, while net loss was $1.5 million. Adjusted EBITDA was $5.8 million, an adjusted EBITDA margin of 25%. Full-year adjusted EBITDA was $17.3 million.
On the balance sheet, the company ended the year with $114.4 million of cash and cash equivalents and no funded debt, plus $3.9 million of restricted cash and an undrawn Royal Bank of Canada credit facility. Huang also noted that in January the company completed a $230 million convertible notes offering due 2031 with a 4.5% coupon and an initial conversion price of $25.91 per share, and entered into a zero-strike capped call structure that he said raises the effective conversion price to about $37 per share and reduces potential dilution.
Tabar said securing cost-effective debt financing for NC-1 remains a top priority, but the process has taken longer than expected, with the company now anticipating debt financing in the second quarter of 2026. He said lenders have increased emphasis on the durability of contracted cash flows, extending underwriting timelines, but management expects the strengthened commercial structure—particularly the investment-grade hyperscale offtake—may improve financing terms. Huang added in Q&A that WhiteFiber is working with counterparties on bridge financing to support liquidity for building out NC-1, with the company looking to complete that in the next few weeks.
About WhiteFiber (NASDAQ:WYFI)
We believe we are a leading provider of artificial intelligence (“AI”) infrastructure solutions. We own high-performance computing (“HPC”) data centers and provide cloud-based HPC graphics processing units (“GPU”) services, which we term cloud services, for customers such as AI application and machine learning (“ML”) developers (the “HPC Business”). Our Tier-3 data centers provide hosting and colocation services. Our cloud services support generative AI workstreams, especially training and inference.
