QumulusAI (NASDAQ:QMLS) Issues Quarterly Earnings Results

QumulusAI (NASDAQ:QMLS) posted its quarterly earnings results on Tuesday. The company reported ($0.29) EPS for the quarter, missing the consensus estimate of ($0.27) by ($0.02), Zacks reports.

Here are the key takeaways from QumulusAI’s conference call:

• Q3 revenue more than doubled sequentially to $14.8 million, up 376% year over year, as newly energized GPU capacity began billing. Adjusted EBITDA turned positive for the first time at $3.7 million.
• Q3 signings reached $352 million, lifting remaining performance obligations to $515 million; 8 MW is active and billing, with another 5.45 MW contracted. Management said demand exceeds available capacity and cited rising pricing for new-generation capacity.
• Capacity delivery remains a constraint, with some data-center timelines shifting and several newly signed or contracted blocks still awaiting service. The additional 7 MW Atlanta expansion is a right of first offer, not a committed deployment, and its timing depends on the site operator.
• The company ended the quarter with $31.1 million in cash and restricted cash against $248 million of debt and finance-lease obligations; Q3 capital expenditures were about $100 million. Management expects depreciation and interest expense to rise again in Q4 as recently deployed equipment contributes a full quarter of costs.
• QumulusAI reaffirmed its year-end targets of 18 MW of contracted capacity and $300 million of forward ARR, while reporting about $209 million of forward ARR under signed contracts. It expects $29.1 million of RPO to be recognized in Q4 and plans to revisit its forward guidance when reporting full-year results.

QumulusAI Stock Down 1.9%

Shares of NASDAQ:QMLS opened at $3.07 on Wednesday. The stock has a market cap of $102.72 million and a P/E ratio of -1.35. QumulusAI has a twelve month low of $2.58 and a twelve month high of $38.00. The business’s 50 day moving average is $5.11.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on QMLS shares. Wall Street Zen lowered shares of QumulusAI from a “hold” rating to a “sell” rating in a report on Saturday, October 17th. Zacks Research raised QumulusAI to a “hold” rating in a report on Friday, August 28th. Weiss Ratings started coverage on QumulusAI in a report on Monday, October 12th. They issued a “sell (e-)” rating on the stock. Chardan Capital decreased their price target on QumulusAI to $13.00 and set a “buy” rating for the company in a report on Wednesday. Finally, B. Riley Financial assumed coverage on QumulusAI in a report on Wednesday, October 21st. They set a “buy” rating and a $11.00 price target for the company. Three equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $11.00.

QumulusAI Company Profile

QumulusAI is a cloud infrastructure company specializing in rapid deployment of graphics processing unit (“GPU”)-powered solutions for artificial intelligence (“AI”) applications, serving a critical market that is often overlooked by large-scale cloud providers (“hyperscalers”), which operate massive, standardized computing infrastructures primarily serving the largest enterprises. Our platform delivers flexible, competitively priced, and customizable solutions for underserved small and mid-market customers—including machine learning teams, AI infrastructure startups, and research institutions—while also supporting the scale and complexity requirements of large enterprises, such as long-term deployments or supplemental on-demand compute capacity.