WhiteFiber (NASDAQ:WYFI) Releases Quarterly Earnings Results, Beats Expectations By $0.01 EPS

WhiteFiber (NASDAQ:WYFI) released its quarterly earnings data on Wednesday. The company reported ($0.39) EPS for the quarter, topping the consensus estimate of ($0.40) by $0.01, FiscalAI reports. WhiteFiber had a negative return on equity of 9.40% and a negative net margin of 45.24%.The company had revenue of $28.84 million during the quarter.

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

• NC1 entered active customer deployment, with approximately 20 MW available and initial billing underway. Management expects the full 40 MW contracted capacity to reach run-rate billing by the end of August, despite earlier switchgear-related delays.
• White Fiber signed more than $540 million in new multi-year cloud services agreements, including contracts with Baseten, Prime Intellect and an Iceland customer. These agreements are expected to support more than $200 million in annualized revenue once fully deployed and rely substantially on customer prepayments and third-party equipment financing.
• Second-quarter revenue increased 54% year over year to $28.8 million, while adjusted EBITDA rose to approximately $5.5 million from $3.3 million. Gross margin excluding depreciation and amortization improved to about 59% from 51% in the prior-year quarter.
• Management highlighted strong demand for AI infrastructure and a pipeline opportunity that could support approximately 60 MW in 2027 and more than 250 MW over time. White Fiber also secured exclusive access to 100 MW of liquid-cooled capacity from Crusoe beginning in 2027.
• The proposed secured financing for NC1 has taken longer than expected and remains subject to diligence, definitive documentation and customary approvals, with no assurance it will close on favorable terms or at all. White Fiber ended the quarter with $56.1 million of cash and added approximately $83.2 million of project-level equipment and bridge financing.

WhiteFiber Stock Performance

NASDAQ:WYFI traded up $4.06 on Wednesday, hitting $28.28. The stock had a trading volume of 1,759,308 shares, compared to its average volume of 1,566,415. The business’s 50-day simple moving average is $30.13 and its two-hundred day simple moving average is $22.77. The stock has a market cap of $1.09 billion and a price-to-earnings ratio of -19.50. WhiteFiber has a 52-week low of $10.51 and a 52-week high of $46.87. The company has a quick ratio of 2.77, a current ratio of 2.77 and a debt-to-equity ratio of 0.63.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on the stock. Weiss Ratings restated a “sell (d)” rating on shares of WhiteFiber in a research note on Wednesday, June 24th. Cantor Fitzgerald boosted their price objective on shares of WhiteFiber from $13.00 to $27.00 and gave the company a “neutral” rating in a report on Friday, May 15th. BTIG Research increased their price objective on shares of WhiteFiber from $35.00 to $50.00 and gave the company a “buy” rating in a research report on Wednesday, June 24th. B. Riley Financial restated a “buy” rating on shares of WhiteFiber in a report on Monday, May 18th. Finally, Barclays lifted their target price on shares of WhiteFiber from $27.00 to $29.00 and gave the stock an “equal weight” rating in a research report on Tuesday, July 21st. Ten equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $34.83.

Hedge Funds Weigh In On WhiteFiber

Several institutional investors have recently made changes to their positions in WYFI. Strs Ohio bought a new stake in WhiteFiber during the fourth quarter valued at approximately $30,000. Royal Bank of Canada raised its position in WhiteFiber by 108.2% in the fourth quarter. Royal Bank of Canada now owns 2,394 shares of the company’s stock worth $37,000 after acquiring an additional 1,244 shares during the period. Police & Firemen s Retirement System of New Jersey bought a new position in WhiteFiber in the fourth quarter worth approximately $44,000. Zurcher Kantonalbank Zurich Cantonalbank purchased a new position in shares of WhiteFiber during the 4th quarter worth $55,000. Finally, MetLife Investment Management LLC purchased a new position in shares of WhiteFiber during the 4th quarter worth $106,000.

WhiteFiber Company Profile

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.