Q2 2026 Axe Compute Inc Earnings Call

August 17, 2026

Speaker #1: Good morning, and welcome to Axe Compute's Q2 2026 earnings call and business update. I'm Erin McMahon, CMO and Head of Investor Relations at Axe Compute.

Erin McMahon: Good morning, and welcome to Axe Compute's Q2 2026 earnings call and business update. I am Erin McMahon, CMO and Head of Investor Relations at Axe Compute. Joining me today are Chris Miglino, Chief Executive Officer, Jeremy Yaukey-Witter, Chief Financial Officer, and Kyle Okamoto, President. Today, we are hosting the call live from Columbus, Georgia, home to a data center that is the site of our 2K B300 cluster build we announced back in April that is set to go live in the coming weeks. Before we begin, today's remarks include forward-looking statements as referenced on slide 2. This presentation contains forward-looking statements within the meaning of safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding signed contracted value, anticipated customer prepayments, deployment timing, annualized run rate, expected margins and profitability, financing structures, potential future contract signing, and future performance.

Erin McMahon: Good morning, and welcome to Axe Compute's Q2 2026 Earnings Call and Business Update. I am Erin McMahon, CMO and Head of Investor Relations at Axe Compute. Joining me today are Chris Miglino, Chief Executive Officer, Jeremy Yaukey-Witter, Chief Financial Officer, and Kyle Okamoto, President. Today, we are hosting the call live from Columbus, Georgia, home to a data center that is the site of our 2K B300 cluster build we announced back in April that is set to go live in the coming weeks. Before we begin, today's remarks include forward-looking statements as referenced on slide 2. This presentation contains forward-looking statements within the meaning of safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding signed contracted value, anticipated customer prepayments, deployment timing, annualized run rate, expected margins and profitability, financing structures, potential future contract signing, and future performance.

Speaker #1: Joining me today are Christopher Maglino, Chief Executive Officer, Jeremy Yahtze-Witter, Chief Financial Officer, and Kyle Okamoto, President. Today we're hosting the call live from Columbus, Georgia, home to a data center that is the site of our QK B300 cluster build we announced back in April that is set to go live in the coming weeks.

Speaker #1: Before we begin, today's remarks include forward-looking statements as referenced on slide 2. This presentation contains forward-looking statements within the meaning of safe harbor provisions of the private securities litigation reform act of 1995, including statements regarding signed contracted value anticipated customer prepayments, deployment timing, annualized run rate, expected margins and profitability, financing structures, potential future contract signing, and future performance.

Speaker #1: These statements are subject to uncertainties that could cause actual results to differ materially, including those described in the risk factor section of Axe Compute's most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the U.S.

Erin McMahon: These statements are subject to uncertainties that could cause actual results to differ materially, including those described in the Risk Factors section of Axe Compute's most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this presentation. Axe Compute undertakes no obligations to update them except as required by law. Financial figures. Quarterly financial figures presented are as reported in the Form 10-Q filed on 14 August 2026. Annualized run rate means annualized monthly recurring revenue upon full deployment of signed contracts. Total contract value, or TCV, is an operating metric representing the aggregate estimated contractual spend under signed customer contracts.

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Speaker #2: Good morning, and welcome

Speaker #2: To Axe Compute's Q2, to Axe.

Speaker #2: 2026 earnings call

Speaker #1: Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements which speak only as of the date of this presentation.

Speaker #2: and business update. I'm Q2 call and business.

Speaker #2: Erin McMahon, CMO and Head of Investor Relations at Axe

Speaker #2: Compute. Joining me today are Christopher,

Speaker #2: Maglino, Chief Executive

Speaker #2: Officer, Jeremy

Speaker #1: Axe Compute undertakes no obligations to update them except as required by law. Financial figures: quarterly financial figures presented are as reported in the Form 10-Q filed on August 14, 2026.

Speaker #2: Yachi-Witter, Chief Financial Officer, and

Speaker #2: Kyle Okamoto,

Speaker #2: President. Today we're

Speaker #2: hosting the call live from

Speaker #2: Columbus, Georgia, home

Speaker #2: to a data center that

Speaker #2: is the site of our.

Speaker #1: Annualized run rate means annualized monthly recurring revenue upon full deployment of signed contracts. Total contract value, or TCV, is an operating metric representing the aggregate estimated contractual spend under signed customer contracts.

Speaker #2: QKB300

Speaker #2: cluster build we announced back in April.

Speaker #2: that is set to go live in the coming

Speaker #2: remarks include forward-looking

Speaker #2: statements as referenced on Slide 2. This

Speaker #1: ARR and TCV are operating metrics and may not represent revenue recognized in a particular period as separately determined in accordance with U.S. GAAP. Signed contracts are subject to deployment, customer acceptance, and other risk described in our SEC filings.

Speaker #2: forward-looking statements within the

Speaker #2: Meaning of Safe Harbor provisions, the meeting of Safe Harbor.

Erin McMahon: ARR and TCV are operating metrics that may not represent revenue recognized in a particular period as separately determined in accordance with US GAAP. Signed contracts are subject to deployment, customer acceptance, and other risks described in our SEC filings. Illustrative steady-state economics are model-derived, blended across signed build contracts and do not constitute guidance. Non-GAAP measures. This presentation includes adjusted EBITDA, which is a non-GAAP financial measure. The company defines adjusted EBITDA as net income/loss adjusted to exclude interest expense/income net, income tax expense/benefit, depreciation and amortization, stock-based compensation expense, fair value adjustments on digital assets. Adjusted EBITDA is not a substitute for net income/loss or any other measure of financial performance prepared in accordance with US GAAP and may not be comparable to similarly titled measures used by other companies.

Speaker #2: Litigation Reform Act of 1995, including statements regarding...

Speaker #2: signed contracted value

Speaker #2: deployment timing, annualized run rate, expected margins and profitability, financing.

Speaker #1: Illustrative study state economics are modeled derived blended across signed build contracts and do not constitute guidance. Non-GAAP measures: this presentation includes adjusted EBITDA, which is a non-GAAP financial measure.

Speaker #2: signing and future performance. These statements are subject to

Speaker #2: uncertainties that could cause actual results to differ.

Speaker #1: The company defines adjusted EBITDA as net income loss adjusted to exclude interest expense, income, net, and income tax expense, benefit, depreciation, and amortization, stock-based compensation expense, fair value adjustments on digital assets.

Speaker #2: Form 10-Q filed with the U.S. Securities and Exchange Commission.

Speaker #2: Readers are cautioned not to place undue reliance on

Speaker #2: only as of the date of this.

Speaker #1: Adjusted EBITDA is not a substitute for net income, loss, or any other measure of financial performance prepared in accordance with U.S. GAAP and may not be comparable to similarly titled measures used by other companies.

Speaker #2: Axe Compute undertakes no obligation to update them.

Speaker #2: except as required by

Speaker #2: law. Financial figures:

Speaker #2: are as reported in the form.

Speaker #2: 10-Q filed on August 14,

Speaker #2: 2026. Annualized run rate

Speaker #1: 2026, and utilized

Speaker #1: Management believes adjusted EBITDA is useful to investors because it provides supplemental measure of the company's core operating performance by excluding the effects of capital structure decisions such as interest expense and fair value changes related to digital asset holdings.

Speaker #1: on current

Speaker #1: revenue upon full deployment

Erin McMahon: Management believes adjusted EBITDA is useful to investors because it provides supplemental measure of the company's core operating performance by excluding the effects of capital structure decisions such as interest expense and fair value changes related to digital asset holdings, non-cash charges such as depreciation, amortization, and stock-based compensation, and tax impacts that can vary significantly between periods across companies. Management uses adjusted EBITDA to evaluate the company's performance, compare performance across periods, and assist in the allocation of resources. Investors are cautioned that adjusted EBITDA has limitations and is an analytical tool and should not be considered in isolation or as a substitute for analysis of the company's results as reported under US GAAP. A reconciliation of adjusted EBITDA to the most direct comparable US GAAP financial measures is included in this presentation.

Speaker #1: of signed contracts. Total

Speaker #1: contract

Speaker #1: value contractual spend under

Speaker #1: signed contracts:

Speaker #1: Non-cash charges such as depreciation, amortization, and stock-based compensation, and tax impacts that can vary significantly between periods across companies. Management uses adjusted EBITDA to evaluate the company's performance, compare performance across periods, and assist in the allocation of resources.

Speaker #1: ARR and

Speaker #1: ETD may now represent

Speaker #1: revenue recognized in a particular

Speaker #1: period as separately determined in

Speaker #1: accordance with the U.S.

Speaker #1: GAAP. Signed GAAP.

Speaker #1: contracts are subject to deployment

Speaker #1: customer acceptance and other risks

Speaker #1: described in our SEC

Speaker #1: filings. Illustrative study state

Speaker #1: Investors are cautioned that adjusted EBITDA has limitations and is an analytical tool and should not be considered an isolation or as a substitute for analysis of the company's results as reported under U.S.

Speaker #1: economics

Speaker #1: are

Speaker #1: signed

Speaker #1: GAAP. A reconciliation of adjusted EBITDA to the most direct comparables: U.S. GAAP financial measures is included in this presentation. To the extent that the company provides forward-looking adjusted EBITDA guidance in connection with this release or related earnings call, a reconciliation of such forward-looking non-GAAP measures to the most direct comparable U.S.

Erin McMahon: To the extent that the company provides forward-looking adjusted EBITDA guidance in connection with this release or related earnings call, a reconciliation of such forward-looking non-GAAP measures to the most direct comparable US GAAP measure may not be available without unreasonable effort due to an inherent difficulty in forecasting and quantifying certain amounts, including but not limited to fair value adjustments on digital asset holdings, stock-based compensation expense, and other non-cash or non-recurring items, the timing and magnitude of which may be significant. No offer or solicitation. This presentation is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of Axe Compute or any of its affiliates. No securities are being offered or sold in any jurisdiction where such offer or sale would be unlawful. Third-party information.

Speaker #1: GAAP measure may not be available without unreasonable effort due to an inherent difficulty in forecasting and quantifying certain amounts, including but not limited to fair value adjustments on digital asset holdings, stock-based compensation, expense, and other non-cash or non-recurring items, and the timing and magnitude of which may be significant.

Speaker #1: contracts provide supplemental

Speaker #1: measure of the company's core operating

Speaker #1: performance by excluding the effects of

Speaker #1: capital structure decisions such as

Speaker #1: interest, expense, and fair

Speaker #1: value changes related to

Speaker #1: No offer or solicitation: this presentation is for informational purposes only and does not constitute an offer to sell or solicitation of an offer to buy any securities of Axe Compute or any of its affiliates.

Speaker #1: digital asset holding,

Speaker #1: non-cash charges such as

Speaker #1: depreciation, amortization, and

Speaker #1: stock-based compensation, and

Speaker #1: Tax impacts that can vary significantly.

Speaker #1: between periods across

Speaker #1: companies. Management uses adjusted

Speaker #1: No securities are being offered or sold in any jurisdiction where such offer or sale would be unlawful. Third-party information: certain information contained in this presentation has been obtained from third-party sources, while Axe Compute believes such information to be reliable.

Speaker #1: EBITDA to evaluate the company's

Speaker #1: performance compared to performance across periods and assist in the allocation of resources. company's performance compare performance across periods and assist in the allocation of resources.

Erin McMahon: Certain information contained in this presentation has been obtained from third-party sources. While Axe Compute believes such information to be reliable, it has not independently verified the accuracy or completeness of such information and makes no representation or warranty, expressed or implied, as to its accuracy or completeness. Please review these statements alongside with our SEC filings available via investors.axecompute.com. With that, I will hand it to our CEO, Chris Miglino.

Speaker #1: It is not independent; it has not independently verified the accuracy or completedness of such information and makes no representation or warranty expressed or implied as to its accuracy or completedness.

Speaker #1: Please review these statements alongside what our SEC filings available via investors.axecompute.com. With that, I'll hand it to our CEO, Christopher McLeano.

Speaker #2: Good morning, everybody. I'm Chris McLeano, and I'm the CEO of Axe Compute. We're here in Georgia, I'm excited to be here. We're getting ready to launch a very large cluster.

Chris Miglino: Good morning, everybody. I am Chris Miglino, and I am the CEO of Axe Compute. We are here in Georgia. I am excited to be here. We are getting ready to launch a very large cluster. For those that are new to the Axe Compute story, Axe Compute is an AI infrastructure platform with two growth engines. Build is our primary engine, which is part of what you are looking at here. We design, deploy, own, and operate dedicated GPU clusters for enterprises. Then we have Access. Access is the complementary recurring stream, fast access to GPU capacity across many different locations across the world. Think of it like a top of the funnel where we meet companies that are interested in GPUs immediately, and then as they grow, we can help them, we can grow with them. What the market sees for Axe is a new AI infrastructure company.

Speaker #2: And for those that are new to the Axe Compute story, Axe Compute is an AI infrastructure platform with two growth engines. Build is our primary engine, which is part of what you're looking at here.

Speaker #2: We design, deploy, own, and operate dedicated GPU clusters for enterprises. Then we have access. Access is the complementary recurring stream: fast access to GPU capacity across many different locations across the world.

Speaker #2: Think of it like a top-of-the-funnel where we meet companies that are interested in GPUs immediately, and then as they grow we can help them; we can grow with them.

Speaker #2: What the market sees for Axe is a new AI infrastructure company. But what the market doesn't realize is that we've been in this business for the past couple of years, and our sales team has been selling to the off-takers for that entire time.

Chris Miglino: What the market doesn't realize is that we have been in this business for the past couple of years, and our sales team has been selling to the offtakers for that entire time. Our supply team has been talking to data centers and engaging with power owners that entire time as well. While it seems like we are a new kid on the block that has all of a sudden signed all of these transactions, this has been an overnight success that has been in the making for the last two years. Before we get into the quarter, I want to spend a couple of minutes on the market we are operating in because it is the single most important piece of context for everything that Jeremy Yaukey-Witter and Kyle Okamoto will be walking through later. It is no surprise that we are in the early innings of a generation build-out of compute.

Speaker #2: And our supply team has been talking to data centers and engaging with power owners that entire time as well. So while it seems like we're a new kid on the block that has all of a sudden signed all of these transactions, then an overnight success that's been in the making for the last two years.

Speaker #2: Before we get into the quarter, I want to spend a couple of minutes on the market. We're operating in because it's the single most important piece of context for everything that Jeremy and Kyle will be walking through later.

Speaker #2: It's no surprise that we're in the early innings of a generation build-out of Compute. You can't turn on the news without seeing some kind of news about data centers, the growth of data centers, the amount of money that's being attributed to data centers.

Chris Miglino: It is no surprise that we are in the early innings of a generation build-out of compute.

Erin McMahon: Good morning, and welcome to Axe Compute's Q2 2026 earnings call and business update. I'm Erin McMahon, CMO and Head of Investor Relations at Axe Compute. Joining me today are Christopher Miglino, Chief Executive Officer; Jeremy Yockey-Witter, Chief Financial Officer; and Kyle Okamoto, President. Today, we're hosting this call live from Columbus, Georgia, home to a data center that is the site of our 2K B300 cluster build we announced back in April and is set to go live in the coming weeks. Before we begin, today's remarks include forward-looking statements as referenced on slide 2. This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding signed contracted value, anticipated customer prepayments, deployment timing, annualized run rate, expected margins and profitability, financing structures, potential future contract signings, and future performance.

Chris Miglino: You can't turn on the news without seeing some kind of news about data centers, the growth of data centers, the amount of money that's being attributed to data centers. In fact, McKinsey says that through 2030, they're just going to be spending around $6.7 trillion, which I think is a low number even at this point. Of that, about $5.2 trillion is attributed specifically to AI-capable capacity. I want to be clear what that second number means. It's not a forecast of AI software revenue for like OpenAI or Anthropic, but AI spending on infrastructure. It's the capital that's required for the physical, the power, the shells, the racks, the GPUs, and that's the market that we're in. That's the market that Axe Compute is in. The second thing that we want to point out is the shape of the demand, not just the size.

Speaker #2: In fact, McKinsey says that through 2030 there is going to be spending of around $6.7 trillion. Which I think is a low number even at this point.

Speaker #2: Of that, about $5.2 trillion is attributed specifically to AI-capable capacity. So I want to be clear what that second number means. It's not a forecast of AI software revenue for like OpenAI or Anthropic, but AI spending on infrastructure.

Speaker #2: So it's the capital that's required for the physical, the power, the shells, the racks, the GPUs, and that's the market that we're in. That's the market that Axe Compute is in.

Speaker #2: So the second thing that we want to point out is the shape of the demand, not just the size. So customers are not asking for generic cloud.

Speaker #2: They're asking for dedicated capacity. They don't want to just be in a shared location with a lot of people. They want to own a cluster like the one that you see behind me, and they want to own that and be able to engage with it on their own without anybody else interacting with them.

Chris Miglino: Customers are not asking for generic cloud. They're asking for dedicated capacity. They don't want to just be in a shared location with a lot of people. They want to own a cluster like the one that you see behind me, and they want to own that and be able to engage with it on their own without anybody else interacting with them. They'll do that on a long-term basis as well, so that'll enable us to sign five- to 10-year transactions. And they want a partner that can help them grow into that space. They want a partner that can help them acquire all the equipment, plan the network, design the network, deploy the network, and work with the appropriate data centers to get the right power and to get the right building ready for their compute needs.

Erin McMahon: These statements are subject to uncertainties that could cause actual results to differ materially, including those described in the Risk Factors section of Axe Compute's most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the US Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this presentation. Axe Compute undertakes no obligation to update them except as required by law. Financial figures: Quarterly financial figures presented are as reported in the Form 10-Q filed on August 14, 2026. Annualized run rate means annualized monthly recurring revenue upon full deployment of signed contracts. Total contract value, or TCV, is an operating metric representing the aggregate estimated contractual spend under signed customer contracts.

Speaker #2: They'll do that on a long-term basis as well. So that'll enable us to sign 5 to 10-year transactions. And they want to partner that can help them grow into that space.

Speaker #2: They want to partner that can help them acquire all the equipment, plan the network, design the network, deploy the network, and work with the appropriate data centers to get the right power and to get the right building ready for their compute needs.

Speaker #2: So that's where our build program comes in. And we help these off-takers do exactly that. We help them do everything that's necessary to get live inside the data center, and then we partner with the right data centers to execute.

Speaker #2: means annualized monthly recurring

Chris Miglino: That's where our Axe Compute Build program comes in, and we help these offtakers do exactly that. We help them do everything that's necessary to get live inside the data center, and then we partner with the right data centers to execute. Not all data centers are made alike, and we do what we can to make sure that we have the right partners that are helping our clients. When you hear the numbers we're about to walk through, more than $3 billion in signed contracts, $696 million in expected annual run rate when we're at full deployment, and more than half a billion dollars in customer prepayments, I'd encourage you to read them against the backdrop of massive demand. We're not creating demand. We're converting market where demand structurally exceeds the supply that's out there.

Speaker #2: revenue upon full deployment of

Speaker #2: signed contracts. Total

Speaker #2: Contract value, or TCV, is an operating...

Speaker #2: metric representing the aggregate estimated contractual spend under

Speaker #2: So not all data centers are made alike, and we do what we can to make sure that we have the right partners that are helping our clients.

Speaker #2: signed customer contracts.

Erin McMahon: ARR and TCV are operating metrics that may not represent revenue recognized in a particular period as separately determined in accordance with US GAAP. Signed contracts are subject to deployment, customer acceptance, and other risks described in our SEC filings. Illustrated steady-state economics are model-derived, blended across signed build contracts and do not constitute guidance. Non-GAAP measures. This presentation includes adjusted EBITDA, which is a non-GAAP financial measure. The company defines adjusted EBITDA as net income/loss adjusted to exclude interest expense/income net, income tax expense/benefit, depreciation and amortization, stock-based compensation expense, fair value adjustments on digital assets. Adjusted EBITDA is not a substitute for net income, loss, or any other measure of financial performance prepared in accordance with US GAAP and may not be comparable to similarly titled measures used by other companies.

Speaker #2: ARR and TCV are operating

Speaker #2: metrics and may not represent

Speaker #2: revenue recognized in a particular

Speaker #2: So when you hear the numbers, we're about to walk through more than $3 billion in signed contracts, $696 million in expected annual run rate when we're at full deployment, and more than half a billion dollars in customer prepayments.

Speaker #2: period as separately determined in

Speaker #2: accordance with U.S.

Speaker #2: Signed contracts are subject to deployment.

Speaker #2: customer acceptance and other risk

Speaker #2: described in our SEC

Speaker #2: filings. Illustrative study

Speaker #2: state economics are modeled

Speaker #2: derived blended across

Speaker #2: And I encourage you to read them against the backdrop of massive demand. So we're not creating demand. The we're converting market where demand structurally exceeds the supply that's out there.

Speaker #2: Signed build contracts and do not constitute guidance. Non-GAAP measures: This presentation includes Adjusted EBITDA, which is a non-GAAP financial measure. The company defines Adjusted EBITDA as net income (loss) adjusted to exclude interest expense (income), net income tax expense (benefit), depreciation and amortization, stock-based compensation expense, and fair value adjustments on digital assets.

Speaker #2: So we're signing all these transactions on a take-or-pay basis with multi-year contracts. So with that context, let's turn to what happened this quarter. We had an amazing quarter.

Chris Miglino: We're signing all these transactions on a take-or-pay basis with multi-year contracts. With that context, let's turn to what happened this quarter. We had an amazing quarter. If we could accomplish what we did this quarter every quarter, everybody on this phone call would be beyond ecstatic. As you can see, we're getting ready to launch the first cluster that we talked about a long time ago. This was the first deal that we told everybody about. This is getting ready to go live, and it's a beautiful piece of art that's there. Many hours of work have gone into bringing this to fruition. But we've really done an amazing job at signing around $3 billion, close to $3 billion worth of additional agreements when we had anticipated that for the quarter, we would be happy to sign an additional $1 billion worth of transactions.

Speaker #2: If we could accomplish what we did this quarter, every quarter, everybody on this phone call would be beyond ecstatic. The as you can see, we're getting ready to launch the first cluster that we talked about a long time ago.

Speaker #2: Adjusted EBITDA is not a substitute for net income, loss, or any other measure of financial performance prepared in accordance with U.S. GAAP and may not be comparable to

Speaker #2: similarly titled measures used by other companies. Management believes adjusted EBITDA is useful to investors because it provides supplemental

Erin McMahon: Management believes adjusted EBITDA is useful to investors because it provides a supplemental measure of the company's core operating performance by excluding the effects of capital structure decisions, such as interest expense and fair value changes related to digital asset holdings, non-cash charges such as depreciation, amortization, and stock-based compensation, and tax impacts that can vary significantly between periods and across companies. Management uses adjusted EBITDA to evaluate the company's performance, compare performance across periods, and assist in the allocation of resources.

Speaker #2: This was the first deal that we told everybody about. This is getting ready to go live and it's a beautiful piece of art that's there.

Speaker #2: measure of the company's core

Speaker #2: operating performance by excluding the effects.

Speaker #2: of capital structure decisions such

Speaker #2: as interest expense and

Speaker #2: Many, many hours of work have gone into bringing this to fruition. But we've really done an amazing job at signing around $3 billion close to $3 billion worth of additional agreements when we had anticipated that for the quarter we would be happy to sign an additional $1 billion worth of transactions.

Speaker #2: fair value changes related

Speaker #2: to digital asset

Speaker #2: holdings. Non-cash charges such as

Speaker #2: depreciation,

Speaker #2: amortization, and stock-based compensation

Speaker #2: and tax impacts that can vary.

Speaker #2: significantly between periods across

Speaker #2: companies. Management uses

Speaker #2: adjusted EBITDA to evaluate the

Speaker #2: So it far exceeded what we had projected. It really did. We really thought that it would be a little bit of a slow ramp, but I'll let I'm going to let Kyle talk a little bit more about the pipeline in a little bit.

Chris Miglino: It far exceeded what we had projected. It really did. We really thought that it would be a little bit of a slower ramp. I am going to let Kyle talk a little bit more about the pipeline in a little bit, but you will see that this momentum has not stopped at all. Now we went from signing all these transactions, doing all these deals, getting all of the ARR set up for next year. Next year, when these are all deployed, again, $696 million in ARR once they get deployed. Now we are in dual mode. We are in the execution mode. The team is working on putting these together and getting them up and running and managing them, making sure that we have all of the appropriate staff in place to manage these for our clients.

Speaker #2: But you'll see that this momentum has not stopped at all. So now we went from signing all these transactions, doing all these deals, getting all of the ARR set up for deployed again, $696 million in ARR once they get deployed.

Speaker #2: Now we're in dual mode. We're in the execution mode. The team is working on putting these together, and getting them up and running and managing them, making sure that we have all of the appropriate staff in place to manage these for our clients.

Speaker #2: So we're really excited about where we sit today from the momentum that we had this quarter. One question we get a lot all the time, basically, is how are our margin on these build projects?

Chris Miglino: We are really excited about where we sit today from the momentum that we had this quarter. One question we get a lot, all the time basically, is how are our margin on these build projects? We wanted to give you a slide that would give investors some insight into what that looks like. These are forward-looking, but this is our modeling. It gives the best shot as to where we believe them to be. We think investors can take a look at these and can utilize them to help them model going forward. As you can see, the gross margins are between 28% and 44%, and the EBITDA margins are 62% to 76%. If you apply those against the $3 billion in announced transactions, you can see that the economics that we are going to be experiencing in 2027 are significant.

Speaker #2: So we wanted to give you a slide that would give investors some insight into what that looks like. These are forward-looking. But this is our modeling.

Speaker #2: It gives the best shot as to where we believe them to be. And we think investors can take a look at these and can help utilize them to help them model going forward.

Speaker #1: It really did. We really thought that it would be a little bit of a slower ramp, but I'll let— you know, I'm going to let Kyle talk a little bit more about the pipeline in a little bit, but you'll see that this momentum has not stopped at all.

Speaker #2: As you can see, the gross margins are between 28 and 44 percent, and the EBITDA margins are 62 to 76 percent. So if you apply those against the $3 billion in announced transactions, you can see that the economics that we're going to be experiencing in '27 are significant.

Speaker #1: So now, we went from signing all these transactions, doing all these deals, getting all of the ARR set up for next year. So, like, next year when these are all deployed—again, $600, $696 million in ARR once they get deployed.

Speaker #2: The only other question we get more than the question about the margins on these deals that we're doing is how are we going to fund these projects?

Chris Miglino: The only other question we get more than the question about the margins on these deals that we are doing is, how are we going to fund these projects? I wanted to walk you through a little bit about how these projects are being funded and how we are working to fund these projects. You can see that each project has a down payment from the customer. Customer puts anywhere from 20% to 45% of the project cost down upfront. What we then do is we have the ability to go out and seek project financing for that revenue stream. When you have an A-plus S&P credit client, and we are looking for financing for that revenue stream, there is a lot of lenders that are willing to lend against that, especially those lenders that understand the GPU market, which you can see from the news, there is a lot of them.

Speaker #1: Now we're in dual mode. We're in the execution mode. The team is working on putting these together, getting them up and running, and managing them—making sure that we have all of the appropriate staff in place to manage these for our clients.

Speaker #2: So I wanted to walk you through a little bit about how these projects are being funded and how we're working to fund these projects.

Speaker #2: So you can see that each project has a down payment from the customer. Customer puts anywhere from 20 to 45 percent of the project cost down up front.

Speaker #1: So we're— we're really excited about where we sit today, from the momentum that we had this quarter. One question we get a lot, all the time basically, is: how are our margins on these build projects?

Speaker #2: What we then do is we have the ability to go out and seek project financing for that revenue stream. Now, when you have a credit A-plus S&P credit client, and that client is we're looking for financing for that revenue stream, there's a lot of lenders that are willing to lend against that, especially those lenders that understand the GPU market, which you can see from the news, there's a lot of them.

Speaker #1: So we wanted to give you a slide that would give investors some insight into what that looks like. These are forward-looking, but, you know, this is our— our modeling.

Chris Miglino: When you have an A-plus S&P credit client, and we are looking for financing for that revenue stream, there is a lot of lenders that are willing to lend against that, especially those lenders that understand the GPU market, which you can see from the news, there is a lot of them.

Speaker #1: It gives the best shot of as to where we believe them to be, and, and we think investors can take a look at these and can help utilize them to help them model going forward.

Speaker #1: As you can see, the gross margins are between 28% and 44%, and the EBITDA margins are 62% to 76%. So if you apply those, again, to the $3 billion in announced transactions, you can see that the economics we're going to be experiencing in ’27 are significant.

Speaker #2: There's a lot of them that have come up, a lot of them that are executing, a lot of them that are investing into the space.

Chris Miglino: There is a lot of them that have come up, a lot of them that are executing, a lot of them that are investing into the space. Our goal is to get that prepayment, find the project financing for each project, similar to what happened here. Off balance sheet, we do not need to raise capital against it, and then execute and deploy the cluster itself. We think that when people understand that we can get these projects financed in this fashion, that is very favorable for the public company. In the instances where we are looking to invest equity into these transactions, we could do so at a point when the stock is at a price where we deem it to be a good location to actually do a transaction if we wanted to.

Speaker #2: So our goal is to get that prepayment, find the project financing for each project, similar to what happened here, off balance sheet. We don't need to raise capital against it.

Speaker #1: The only other question we get more than the question about the margins on these deals that we're doing is: how are we going to fund these projects?

Speaker #2: And then execute and deploy the cluster itself. So we think that when people understand that we can get these projects financed in this fashion, that it's very favorable for the public company and in the instances where we are looking to invest equity into these transactions, we could do so at a point when the stock is at a price where we deem it to be a good location to actually do a transaction if we wanted to.

Speaker #1: So, I wanted to walk you through a little bit about how these projects are being funded and how we're working to fund these projects.

Speaker #1: So you can— you can see that each project has a down payment from the customer. The customer puts anywhere from 20 to 45 percent of the project cost down up front.

Speaker #1: What we then do is, we have the ability to go out and seek project financing for that revenue stream. Now, when you have an A-credit—A-plus S&P credit client, and that client is... we're looking for financing for that revenue stream, there are a lot of lenders that are willing to lend against that, especially those lenders that understand the GPU market, which you can see from the news.

Speaker #2: Otherwise, we can sit back and do project financings against each of these projects and leveraging the good credit of the clients that are building these things with us.

Chris Miglino: Otherwise, we can sit back and do project financings against each of these projects and leveraging the good credit of the clients that are building these things with us. We have two really big announcements today. The first is that we have received the first prepayment of $317 million-plus for our cluster that we are expanding. Then we have signed an agreement for an additional 55 megawatts over a course of a number of different locations with Duos Technologies. We are excited about both of these things. I think these will give you an idea of where the business is going. In order to talk a little bit more about our partnership with Duos, we have asked the CEO of Duos, Doug Recker, to be with us here today so that we can give you a little bit of an insight of what our expansion will look like into that 55 megawatts.

Speaker #2: We have two really big announcements today. The first is that we've received the first prepayment of $317 million plus for our cluster that we're expanding.

Speaker #1: There are a lot of them. There are a lot of them that have come up, a lot that are executing, and a lot that are investing into the space.

Speaker #2: And then we've signed an agreement for an additional $55 megawatts over the course of a number of different locations. With Duos Technologies. So we're excited about both of these things.

Speaker #1: So you know, our goal is to get that prepayment, find the, the project financing for each project, similar, you know, to what— to what happened here, off balance sheet.

Speaker #2: I think these will give you an idea of where the business is going. And in order to talk a little bit more about our partnership with Duos, we've asked the CEO of Duos Doug Rucker to be with us here today so that we can give you a little bit of an insight of what our expansion will look like into that $55 megawatts.

Speaker #1: We don't need to raise capital against it, and then execute and deploy the cluster itself. So, we think that, you know, when people understand that we can get these projects financed in this fashion, it's very favorable for the public company. And, in the instances where we are looking to invest equity into these transactions, we could do so at a point when the stock is at a price where we deem it to be a good location to actually do a transaction, if we wanted to.

Chris Miglino: In order to talk a little bit more about our partnership with Duos, we have asked the CEO of Duos, Doug Recker, to be with us here today so that we can give you a little bit of an insight of what our expansion will look like into that 55 megawatts.

Operator: You have joined the meeting as an attendee and will be muted throughout the meeting.

Speaker #2: One of the most important things in building data centers is having a good partner. And I'm here with Doug Rucker from Duos Technologies, who has been a fantastic partner for us.

Chris Miglino: One of the most important things in building data centers is having a good partner, and I am here with Doug Recker from Duos Technologies, who has been a fantastic partner for us. Doug.

Speaker #2: Doug, thank you for having me.

Speaker #3: No, thanks for being here. And I have to say that very glad that we are doing business with Duos. You guys have literally been an amazing partner in this process.

Doug Recker: Thank you for having me.

Speaker #1: Otherwise, we can sit back and do project financings against each of these projects, leveraging the good credit of the clients that are building these things with us.

Chris Miglino: Yeah, thanks for being here, and I have to say that very glad that we are doing business with Duos. You guys have literally been an amazing partner in this process. Wanted to thank you for that. I think today we are excited to announce that we have signed a deal to do an additional 55 megawatts over multiple locations with Duos. We appreciate that support and

Speaker #3: So wanted to thank you for that. I think today we're excited to announce that we've signed a deal to do an additional $55 megawatts over multiple locations with Duos.

Speaker #1: We have two really big announcements today. The first is that we've received the first prepayment of over $317 million for our cluster that we're expanding.

Speaker #3: So we appreciate that support.

Speaker #1: Great partnership. We're looking forward to it.

Speaker #3: I mean, if this location where we are today is any indication of how everything else is going to go, I feel very confident in your hands that you will get everything done.

Speaker #1: And then we've signed an agreement for an additional 55 megawatts across a number of different locations with Duos Technologies. So we're excited about both of these things.

Doug Recker: Great partnership. We are looking forward to it.

Chris Miglino: If this location where we are today is any indication of how everything else is going to go, I feel very confident in your hands that you will get everything done. I appreciate your support. What you have accomplished here since we got going is just incredible.

Speaker #3: So I appreciate your support. I mean, what you've accomplished here in since we got going is just incredible.

Speaker #1: I think these will give you an idea of where the business is going. And in order to talk a little bit more about our partnership with Duos, we've asked the CEO of Duos, Doug Recker, to be with us here today so that we can give you a little bit of an insight into what our expansion will look like into that 55 megawatts.

Speaker #1: It's incredible what we've done under what, 45 days? If you could literally take the camera and walk around the facility. It's amazing how fast we've implemented this project.

Doug Recker: It is incredible what we have done under what, 45 days?

Chris Miglino: Yeah.

Speaker #1: And it's kind of a testament of how we work as a company, right? We'll tell you we can do it, and we'll deliver. Now, we're not going to tell you we're going to do 100 megs in three weeks, right?

Doug Recker: If you could literally take the camera and walk around the facility, it is amazing how fast we have implemented this project. It is a testament of how we work as a company, right? We will tell you we can do it, and we will deliver. We are not going to tell you we are going to do 100 megs in 3 weeks. We are not going to say that, but as you can see from our product, this is all under 45 days.

Speaker #2: One of the most important things in building data centers is having a good partner. And I'm here with Doug Recker from Duos Technologies, who has been a fantastic partner for us.

Speaker #1: We're not going to say that. But as you can see from our product, this is all under 45 days.

Speaker #3: Yeah. So it's important that I think a lot of people that watch this that are very interested in the data center space, but they don't understand all the components that go and are involved in this process, right?

Speaker #2: Doug, thank you for having me.

Speaker #1: No, thanks for being here. And I have to say that I'm very glad that we are doing business with Duos. You guys have literally been an amazing partner in this process.

Chris Miglino: Yeah. It is important that I think a lot of people that watch this that are very interested in the data center space, but they do not understand all the components that go in, are involved in this process. There is the data center owner, which is you guys.

Speaker #3: So there's the data center owner, which is you guys. And you're also the operator of the building. And then there's all this stuff that we have to get in here.

Speaker #1: So, I wanted to thank you for that. I think today we're excited to announce that we've signed a deal to do an additional 55 megawatts over multiple locations with Duos.

Doug Recker: Right.

Chris Miglino: And you are also the operator of the building. And then there is all this stuff that we have to get in here.

Speaker #3: And that's our role, right, is to get this stuff in here, get it up and running, manage it, manage the install, manage the process.

Speaker #1: So we appreciate that support. I mean, if this location where we are today is any indication of how everything else is going to go, I'm—I feel very confident in your hands that you will get everything done.

Doug Recker: Right.

Chris Miglino: And that is our role,

Speaker #3: But tell the people that are watching how your business works, what you guys do, and how that results for you guys, because you guys are also a public company.

Doug Recker: Right

Chris Miglino: is to get this stuff in here, get it up and running, manage it, manage the install, manage the process.

Doug Recker: Right.

Chris Miglino: But tell the people that are watching how your business works, what you guys do, and how that results for you guys, because you guys are also a public company.

Speaker #1: So, I appreciate your support. I mean, what you've accomplished here since we got going is just incredible. So...

Speaker #3: It's a DUOT, Duos Technologies. So explain how that works so that everybody understands.

Speaker #1: Sure. So what's great about our business is we've actually been in the business over 30 years, myself, built many data centers, large data centers, and even the modular approach, right?

Doug Recker: Absolutely.

Chris Miglino: DUOT, Duos Technologies.

Doug Recker: Yeah.

Speaker #2: It's incred—it's incredible what we've done under, what, 45 days? If you—if you could literally take the camera and walk around the facility.

Chris Miglino: So explain how that works

Doug Recker: Yeah

Chris Miglino: so that everybody understands.

Doug Recker: Sure. What is great about our business is we have actually been in the business over 30 years. Myself, built many data centers, large data centers, and even the modular approach. What we are doing now in our partnership with Axe and what our business model is basically deploying modularly. What we will do is we will find a facility like this, where there is the building and there is fiber to it, and we will bring our modular approach to that, which basically is we build our e-houses, our chiller plants, everything modular. We will build it offsite and deliver it, and then we can plug it in in a matter of 60 days, 90 days, even quicker sometimes, if you look at this environment. We have really mastered that approach. We have been doing it for about nine years. Now we are really just focused on basically the 5 to 25, 30-megawatt range.

Speaker #1: So with Axon, what our business model is, is basically deploying modularly. So what we'll do is we'll find a facility like this where there's the building and there's fiber to it.

Speaker #2: It's amazing how fast we've implemented this project, and it's kind of a testament to how we work as a company, right? We'll tell you we can do it, and we'll deliver.

Speaker #1: And we'll bring our modular approach to that, which basically is we build our e-houses, our chiller plants, everything modular. We'll build it off-site and deliver it.

Speaker #2: Now, we're not going to tell you we're going to do 100 megs in three weeks, right? We're not going to say that. But as you can see from our product, this is all under 45 days.

Erin McMahon: Good morning, and welcome to Axe Compute's Q2 2026 earnings call and business update. I'm Erin McMahon, CMO and Head of Investor Relations at Axe Compute. Joining me today are Christopher Miglino, Chief Executive Officer; Jeremy Yaukey-Witter, Chief Financial Officer; and Kyle Okamoto, President. Today, we're hosting this call live from Columbus, Georgia, home to a data center that is the site of our 2K B300 cluster build, which we announced back in April and is set to go live in the coming weeks. Before we begin, today's remarks include forward-looking statements as referenced on slide 2. This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding signed contracted value, anticipated customer prepayments, deployment timing, annualized run rate, expected margins and profitability, financing structures, potential future contract signing, and future performance.

Speaker #1: And then we can plug it in in a matter of 60 days, 90 days, even quicker sometimes if you look at this environment. So we've really mastered that approach.

Speaker #1: Yeah, so it's— it's important that, like, I think a lot of people that watch this are very interested in the data center space, but they don't understand all the components that are involved in this process.

Speaker #1: We've been doing it for about nine years. Now we're really just focused on basically the five to 25, 30 megawatt range. We're not going to go out and build 100 megawatt in one day.

Speaker #1: Right? So, there's the data center owner, which is you guys.

Doug Recker: We have been doing it for about nine years. Now we are really just focused on basically the 5 to 25, 30-megawatt range.

Speaker #2: Right.

Speaker #1: And you're the— also the, you know, the operator of the building. And then there's— there's all this stuff that we have to get in here.

Speaker #1: We'll do it modularly. And we'll build with the client, kind of like what we're doing with you.

Doug Recker: We are not going to go out and build 100 megawatt in one day. We will do it modularly, and we will build with the client, kind of like what we are doing with you.

Speaker #3: So and you guys, when you built this core here, you got everything ready for the next expansion.

Speaker #2: Right. Right.

Speaker #1: And that's our role. Right?

Speaker #1: It's to get this stuff in here and get it up and running—manage it, manage the install, manage the process.

Speaker #1: Exactly right. And that's going back to the modular approach, right? So we built a 10 megawatt, but we do the main infrastructure outside to be able to expand.

Chris Miglino: You guys, when you built this core here, you got everything ready for the next expansion.

Speaker #2: Right.

Speaker #1: But tell, you know, the people that are watching, you know, what— how your business works, what you guys do, and, you know, how that results for you guys.

Doug Recker: Exactly right. That is going back to the modular approach. We built a 10-megawatt, but we do the main infrastructure outside to be able to expand. Then we bring another 10-megawatt in of clusters, and we bring that in modular with our e-houses and our chiller plant and our electrical plant. All that plant and everything is done, and we build it and drop them as we go.

Speaker #1: So then we bring another 10 megawatt in of clusters, and we bring that in modular with our e-houses and our chiller plant and our electrical plant.

Speaker #1: Because you guys are also a public company. It's D-U-O-T, Duos Technologies. So explain how that works so that everybody understands.

Speaker #1: All that plant and everything is done and we build it and drop them as we go.

Speaker #3: So this is going to be interesting when we go to the expansion, that's starting right now, is how loud it's going to be in here.

Speaker #2: Yeah, sure. So what's great about our business is that we've actually been in the business for over 30 years. I, myself, have built many data centers—large data centers—and even taken the modular approach.

Chris Miglino: This is going to be interesting when we go to the expansion that's starting right now, is how loud it's going to be in here. It's going to be a whole different world

Speaker #3: It's going to be a whole different world for the everybody that's working in here because it is going to be screaming loud in here.

Speaker #2: Right? So what we're doing now in our partnership with Axe and with our business model is basically deploying modularly. So what we'll do is find a facility like this, where there's the building and there's fiber to it, and we'll bring our modular approach to that, which basically is: we build our e-houses, our chiller plants, everything modular.

Erin McMahon: These statements are subject to uncertainties that could cause actual results to differ materially, including those described in the Risk Factors section of Axe Compute's most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this presentation. Axe Compute undertakes no obligation to update them, except as required by law. Financial figures: Quarterly financial figures presented are as reported in the Form 10-Q filed on August 14, 2026. "Annualized run rate" means annualized monthly recurring revenue upon full deployment of signed contracts. "Total contract value," or TCV, is an operating metric representing the aggregate estimated contractual spend under signed customer contracts.

Speaker #3: And so I think they're going to charge us a little extra for putting that one together.

Doug Recker: Yeah

Chris Miglino: for everybody that's working in here.

Doug Recker: Right.

Chris Miglino: Because it is going to be screaming loud in here, and I think they're going to charge us a little extra for putting that one together.

Speaker #1: But it is just amazing, isn't it, just to see that a great partnership works in several ways, right? We're the infrastructure side of this house, right?

Doug Recker: It is just amazing, isn't it. Just to see that a great partnership works in several ways, right. We're the infrastructure side of this house. Without the infrastructure, you don't have the operating side. You are the operating partner, and to work together in how we worked in this program together has been amazing. The communication is key. You guys are masters at what you do, and we're good at what we do. You put those two minds together and it's unbelievable, and hence, see what's going up now.

Speaker #1: Without the infrastructure, you don't have the operating side. You are the operating partner. And to work together in how we worked in this program together, it's been amazing.

Speaker #2: We'll build it off-site and deliver it, and then we can plug it in in a matter of, you know, 60 days, 90 days—sometimes even quicker if you look at this environment.

Speaker #1: So the communication is key. You guys are masters at what you do, and we're good at what we do. You put those two minds together, and it's unbelievable.

Speaker #2: So we've really mastered that approach. We've been doing it for about nine years. Now we're really just focused on basically the 5 to 25, 30-megawatt range.

Speaker #1: And hence see what's going off now.

Speaker #3: And I think another exciting thing that we're doing together and this is we put this information out today is our participation with Duos in owning the data centers.

Speaker #2: We're not going to go out and build 100 megawatts in one day. We'll do it modularly, and we'll build with the client—kind of like what we're doing with you.

Chris Miglino: And I think another exciting thing that we are doing together, and we put this information out today, is our participation with Duos in owning the data centers. If there is anybody that you want to own a data center with, it is Doug and his team. So what we are bringing capital through SPV that is being invested into new buildings, new structures where we know that there is power, we know that we can get natural gas if it is going to be

Speaker #1: So— and you guys, when you built this core here, you got everything ready for the next expansion.

Speaker #2: Exactly right. And that's going back to the modular approach, right? So we built to 10 megawatts, but we do the main infrastructure outside to be able to expand.

Speaker #3: So if there's anybody that you want to own a data center with, it's Doug and his team. And so we're bringing capital through SPV that is being invested into new buildings, new structures where we know that there's power, we know that we can get natural gas if it's going to be off the grid.

Speaker #2: So then we bring another 10 megawatts in of clusters, and we bring that in modular, with our e-houses and our chiller plant, and our electrical plant.

Erin McMahon: ARR and TCV are operating metrics that may not represent revenue recognized in a particular period as separately determined in accordance with US GAAP. Signed contracts are subject to deployment, customer acceptance, and other risks described in our SEC filings. Illustrated steady-state economics are model-derived, blended across signed build contracts and do not constitute guidance. Non-GAAP measures. This presentation includes adjusted EBITDA, which is a non-GAAP financial measure. The company defines adjusted EBITDA as net income/loss adjusted to exclude interest expense/income net, income tax expense/benefit, depreciation and amortization, stock-based compensation expense, fair value adjustments on digital assets. Adjusted EBITDA is not a substitute for net income, loss, or any other measure of financial performance prepared in accordance with US GAAP and may not be comparable to similarly titled measures used by other companies.

Speaker #2: All that planning and everything is done, and we build it and drop them as we go.

Speaker #1: So this is going to be interesting when the, you know, when we go to the expansion that's starting right now, is how loud it's going to be in here.

Speaker #3: And so in these megawatts that we've signed up, we're also participating in the ownership along with Doug. That enables Doug to go a lot further in developing a lot more data centers with less capital allows us to create an SPV that owns the that participates in financing the buildings so Doug can build more data centers without having to raise a lot of additional capital it's a perfect partnership.

Speaker #1: It's going to be a whole different world for the work, for everybody that's working in here, because it is going to be screaming loud in here.

Doug Recker: Right

Chris Miglino: off the grid. So, in these megawatts that we have signed up, we are also participating in the ownership along with Doug. That enables Doug to go a lot further in developing a lot more data centers with less capital, allows us to create an SPV that participates in financing the buildings, so Doug can build more data centers without having to raise a lot of additional capital.

Speaker #1: And so, I think they're going to charge us a little extra for putting that one together.

Speaker #2: But it is just amazing, isn't it? Just to see—a great partnership works in several ways, right? We're the infrastructure side of this house.

Speaker #2: Right? With that—without the infrastructure, you don't have the operating side. You are the operating partner, and to work together in how we work in this program together has been amazing.

Speaker #2: So the communication is key. You guys are masters at what you do, and we're good at what we do. You put those two minds together, and it's unbelievable.

Speaker #3: And what that allows us to do is to grow quickly as well. So what we're also good at, which we need to talk about, is the infrastructure side on the purchasing.

Doug Recker: Equity. Yeah.

Chris Miglino: Yeah. So

Doug Recker: It's a perfect partnership, and that allows us to grow quickly as well. What we're also good at, which we need to talk about, is the infrastructure side on the purchasing. The key to building at this speed is to make sure that you're ordering the right equipment and getting it in on time. We have a whole other division, the infrastructure division of our business, and that's what we do. We'll buy our UPSes, our e-houses well in advance. We'll buy our generators, and we basically work them in parallel. With the partnership, that allows us to buy the assets now, so when we are ready for the actual build, we do the Lego blocks immediately and we're in in 120 days, 90 days, 60 days, depending on what the build looks like.

Speaker #3: So the key to building at this speed is to make sure that you're ordering the right equipment and getting it in time. And we have a whole other division, the infrastructure division of our business.

Speaker #2: And hence, see what's going on now.

Speaker #1: And I think another exciting thing that we're doing together—and this is, you know, we put this information out today—is our participation with Duos in owning the data centers.

Speaker #3: And that's what we do. So we'll buy our UPSs, our e-houses, well in advance. We'll buy our generators, and we basically work them in parallel.

Erin McMahon: Management believes adjusted EBITDA is useful to investors because it provides a supplemental measure of the company's core operating performance by excluding the effects of capital structure decisions, such as interest expense and fair value changes related to digital asset holdings; non-cash charges, such as depreciation, amortization, and stock-based compensation; and tax impacts that can vary significantly between periods across companies. Management uses adjusted EBITDA to evaluate the company's performance, compare performance across periods, and assist in the allocation of resources.

Speaker #3: So with the partnership, that allows us to buy the assets now. So when we are ready for the actual build, we do the Lego blocks immediately, and we're in in 120 days, 90 days, 60 days, depending on what the build looks like.

Speaker #1: So if there's anybody that you want to own a data center with, it's Doug and his team. And so we're bringing capital through an SPV that is being invested into new buildings, new structures where we know that there's power, and we know that we can get natural gas if it's going to be off the grid.

Speaker #3: When you come in at the 20 megawatt, 30 megawatt range, which is our sweet spot, the 10 to 30, you're actually in a good place.

Doug Recker: When you come in at the 20-megawatt, 30-megawatt range, which is our sweet spot, the 10 to 30, you're actually in a good place. You can deploy quick, you can do it right, you're environmentally friendly, and also you're good for the community. We can move quicker at that scale.

Speaker #3: You can deploy quick. You can do it right. Your environmentally friendly and also you're good for the community. And we can move quicker at that scale.

Speaker #1: And so, in these megawatts that we've signed up, we're also participating in the ownership along with Doug. That enables Doug to go a lot further in developing a lot more data centers with less capital. It allows us to create an SPV that participates in financing the buildings, so Doug can build more data centers without having to raise a lot of additional capital equity.

Speaker #3: Yeah. And it doesn't require this two-year build.

Speaker #1: That's right.

Speaker #3: Like a lot of stuff that we're looking at now will be deployed by the end of the year and into the beginning of the first quarter.

Chris Miglino: Yeah, it doesn't require this two-year build.

Doug Recker: That's right.

Chris Miglino: A lot of stuff that we're looking at now will be deployed by the end of the year

Speaker #1: That's correct.

Speaker #3: So speed.

Speaker #1: What's key for your business and key for our business is revenue. So when we procure this product, we want it installed. We want that thing producing revenue.

Doug Recker: Right

Chris Miglino: and into the beginning of Q1.

Doug Recker: That's correct. Right.

Chris Miglino: So-

Doug Recker: What's key for your business and key for our business is revenue.

Speaker #1: And this is key to our business and your business. We have to get it up. We need that revenue to come in.

Chris Miglino: Right.

Doug Recker: When we procure this product, we want it installed. We want that thing producing revenue. This is key to our business and your business. We have to get it up. We need that revenue to come in.

Speaker #2: Yeah, so it's a perfect partnership. And what that allows us to do is grow quickly as well. What we're also good at, which we need to talk about, is the infrastructure side on purchasing.

Speaker #1: Yeah.

Speaker #3: And you got everybody wants to be in the data center business right now. Right? I got calls all the time. People want to be in the data center business.

Speaker #3: The first thing I say to them is, I know somebody that's in the data center business, and it is not as easy as you think.

Chris Miglino: Everybody wants to be in the data center business right now.

Speaker #2: So, the key to building at this speed is to make sure that you're ordering the right equipment and getting it in time. We have a whole other division—the Infrastructure division of our business—and that's what we do.

Doug Recker: Everybody.

Chris Miglino: I get calls all the time. People want to be in the data center business. The first thing I say to them is, "I know somebody that's in the data center business, and it is not as easy as you think.

Speaker #3: It is this is a very complex building process. What I've seen happen here is unbelievable. And if you don't know what you're doing, you're losing your you're losing.

Speaker #2: So, we'll buy our UPSs, our e-houses, well in advance. We'll buy our generators, and we basically work them in parallel. So, with the partnership, that allows us to buy the assets now.

Doug Recker: No.

Chris Miglino: This is a very complex building process. What I've seen happen here is unbelievable.

Speaker #3: It is not going to happen. If there's any business where you need to know every detail, it's this business.

Doug Recker: Yeah.

Chris Miglino: If you do not know what you are doing, you are losing.

Doug Recker: Right.

Chris Miglino: You are losing.

Speaker #2: So, when we are ready for the actual build, we do the Lego blocks immediately, and we're in in 120 days, 90 days, 60 days—you know, depending on what the build looks like.

Doug Recker: Right.

Chris Miglino: It is not going to happen. If there is any business where you need to know every detail, it is this business.

Speaker #1: Sure. And also in this business, you see this looks great, and anybody can put a cabinet in and plug power to it. It's actually after it's up is where the expertise needs to come in.

Doug Recker: Sure. Also, in this business, you see this, it looks great, and anybody can put a cabinet in and plug power to it. It is actually after it is up is where the expertise needs to come in. They need to be able to manage the facility, know what you are doing.

Speaker #2: When you come in at the 20-megawatt, 30-megawatt range—which is our sweet spot, the 10 to 30—you’re actually in a good place.

Speaker #1: They need to be able to manage the facility know what you're doing. Anybody can build. It's after the build is what is the most important part of the business.

Speaker #2: You can deploy quickly, you can do it right, you're environmentally friendly, and also you're good for the community. And we can move quicker at that scale.

Speaker #3: Well, again, Doug, I really appreciate the partnership. We're excited. And we're excited to build with you. And we're looking forward to the future partnership with you.

Chris Miglino: Right.

Doug Recker: Anybody can build. It's after the build is what is the most important part of the business.

Speaker #1: Yeah, and it doesn't require this two-year build. A lot of the stuff we're looking at now will be deployed by the end of the year and into the beginning of the first quarter.

Chris Miglino: Well, again, Doug, I really appreciate the partnership.

Doug Recker: We look forward to it.

Speaker #3: Me too. I appreciate it. Thank you. Now I'd like to turn the call over to Jeremy. Jeremy is going to give us a breakdown of the financials for the quarter.

Chris Miglino: We're excited to build with you, and we're looking forward to the future partnership with you.

Speaker #2: That's correct. So.

Speaker #1: Right. So speed—what's key for your business and key for our business is revenue. Right?

Doug Recker: Me too.

Chris Miglino: All right. Thank you very much.

Speaker #2: Right. So when we procure this product, we want it installed. We want that thing producing revenue. And this is key to our business—and your business.

Doug Recker: Thank you, my friend.

Chris Miglino: Appreciate it.

Doug Recker: Thank you so much.

Chris Miglino: Thank you. Now I'd like to turn the call over to Jeremy. Jeremy's going to give us a breakdown of the financials for the quarter. Jeremy, take it away.

Speaker #3: Jeremy, take it away.

Speaker #4: Thank you, Chris. I'll start by covering the second quarter results. Then we'll walk through the timeline for when the signed book is expected to translate to recognized revenue.

Speaker #2: We have to get it up. We need that revenue to come in.

Speaker #1: And you’ve got everybody who wants to be in the data center business right now, right? I get calls all the time—people want to be in the data center business.

Jeremy Yaukey-Witter: Thank you, Chris. I'll start by covering the Q2 results, then we'll walk through the timeline for when the signed book is expected to translate to recognized revenue. Revenue for the Q2 was $3.2 million, our first full quarter of compute revenue, up from $35,000 in Q1. Bear in mind that all of our compute revenue this quarter came from the access model. Build revenue has not yet started. That begins at go live. Net loss was $17.2 million, driven by $13.1 million of losses on digital assets, primarily unrealized fair value changes on our Aethir holdings that flow through the income statement each period as the token's market price moves. We generated $17.4 million of positive operating cash flow for the H1 of 2026, primarily driven by customer prepayments, which totaled $60.8 million at 30 June.

Speaker #4: Revenue for the second quarter was $3.2 million. Our first full quarter of compute revenue up from $35,000 in Q1. Bear in mind that all of our compute revenue this quarter came from the access model.

Speaker #1: The first thing I say to them is, I know somebody that's in the data center business, and it is not as easy as you think.

Speaker #1: It is. This is a very complex building process. What I've seen happen here is unbelievable. And if you don't know what you're doing, you're losing—you're losing.

Speaker #4: Build revenue has not yet started. That begins to echo life. Net loss was 17.2 million, driven by 33.1 million of losses on digital assets.

Speaker #1: It is not going to happen. This is—if there's any business where you need to know every detail, it's this business.

Speaker #4: Primarily unrealized fair value changes on our Aether holdings that flow through the income statement each period as the token's market price moves. We generated 17.4 million positive operating cash flow for the first half of 2026.

Speaker #2: Sure. And the key, you know, also in this business—you see this, it looks great, and anybody can put a cabinet in and plug power into it.

Speaker #2: It's actually after it's up that the expertise needs to come in. They need to be able to manage the facility and know what they're doing.

Speaker #2: Anybody can build. It's after the build that is the most important part of the business.

Speaker #4: Primarily driven by customer prepayments, which totaled 60.8 million at June 30th. Both figures reflect the strength of our take or pay prepay first contract structure.

Speaker #1: Well, again, Doug, I really appreciate the partnership. We're excited, and we're excited to build with you. And, you know, we're looking forward to the future partnership with you.

Speaker #4: On the balance sheet, we ended the quarter with 21.9 million in cash, up from 6.9 million at the end of Q1. Our digital assets primarily comprising the Aether token together with the current portion of our digital asset receivable totaled approximately 18.8 million at quarter end.

Jeremy Yaukey-Witter: Both figures reflect the strength of our take-or-pay, prepay first contract structure. On the balance sheet, we ended the quarter with $21.9 million in cash, up from $6.9 million at the end of Q1. Our digital assets, primarily comprising the Aethir token, together with the current portion of our digital asset receivable, totaled approximately $18.8 million at quarter end. During the quarter, we also made a number of prepayments to third-party compute suppliers to reserve compute for signed customer contracts spanning terms of up to three years, which are reported on the balance sheet as compute prepayments. Contract liabilities dominate the other side of the balance sheet as of 30 June, including $33.6 million expected to be recognized as revenue within 12 months, and another $27.1 million of long-term contract liabilities.

Speaker #1: All right.

Speaker #2: Me too. Thank you, my friend. Thank you so much.

Speaker #1: Thank you. Now I'd like to turn the call over to Jeremy. Jeremy's going to give us a breakdown of the financials for the quarter.

Speaker #1: Jeremy, take it away.

Speaker #4: During the quarter, we also made a number of prepayments to third-party compute suppliers to reserve compute for signed customer contracts, spanning terms of up to three years, which are reported on the balance sheet as compute prepayments.

Speaker #3: Thank you, Chris. I'll start by covering the second quarter results. Then we'll walk through the timeline for when the signed book is expected to translate to recognized revenue.

Speaker #3: Revenue for the second quarter was $3.2 million. This was our first full quarter of compute revenue, up from $35,000 in Q1. Bear in mind that all of our compute revenue this quarter came from the access model.

Speaker #4: Contract liabilities dominate the other side of the balance sheet as of June 30th, including 33.6 million expected to be recognized as revenue within 12 months.

Speaker #4: And another 27.1 million of long-term contract liabilities. As a reminder, these contract liabilities represent prepayments made by customers to us in connection with executed contracts for compute.

Speaker #3: Build revenue has not yet started. That begins to echo life. Net loss was $17.2 million, driven by $3.1 million of losses on digital assets.

Jeremy Yaukey-Witter: As a reminder, these contract liabilities represent prepayments made by customers to us in connection with executed contracts for compute. That brings me to adjusted EBITDA, which we are introducing this quarter. We believe adjusted EBITDA serves as a meaningful performance measure for investors to evaluate our operating performance and to compare the financial results between periods. I want to be specific about what that metric does and doesn't exclude. Adjusted EBITDA adds back interest, income taxes, depreciation, amortization, as well as stock-based compensation, standard EBITDA add-backs. It also excludes the unrealized non-cash fair value adjustment on our digital assets, $11.8 million of the $13.1 million loss on digital assets this quarter. What it does not exclude is the realized portion, about $1.3 million, including Aethir we actually used to pay for compute that we sold to customers. On that basis, adjusted EBITDA was approximately negative $4.9 million for the quarter.

Speaker #3: Primarily unrealized fair value changes on our Aether holdings that flowed through the income statement each period as the token's market price moves. We generated $17.4 million of positive operating cash flow for the first half of 2026.

Speaker #4: That brings me to Adjusted EBITDA, which we're introducing this quarter. We believe Adjusted EBITDA serves as a meaningful performance measure for investors to evaluate our operating performance and to compare the financial results between periods.

Speaker #4: I want to be specific about what that metric does and doesn't exclude. Adjusted EBITDA adds back interest income taxes depreciation amortization as well as stock-based compensation.

Speaker #3: Primarily driven by customer prepayments, which totaled $60.8 million at June 30th. Both figures reflect the strength of our take-or-pay, prepay-first contract structure.

Speaker #4: Standard EBITDA add-backs. It also excludes the underalized non-cash fair value adjustment on our digital assets. 11.8 million of the 13.1 million loss on digital assets this quarter.

Speaker #3: On the balance sheet, we ended the quarter with $21.9 million in cash, up from $6.9 million at the end of Q1. Our digital assets, primarily comprising the Aether token, together with the current portion of our digital asset receivable, totaled approximately $18.8 million at quarter end.

Speaker #4: What it does not exclude is the realized portion about 1.3 million including ATH we actually used to pay for compute that we sold to customers.

Speaker #3: During the quarter, we also made a number of prepayments to third-party compute suppliers to reserve compute for signed customer contracts, spanning terms of up to three years. These are reported on the balance sheet as compute prepayments.

Speaker #4: On that basis, Adjusted EBITDA was approximately negative 4.9 million for the quarter. About 0.9 million of that amount related to our legacy drug discovery service segment.

Jeremy Yaukey-Witter: On that basis, adjusted EBITDA was approximately negative $4.9 million for the quarter.

Speaker #3: Contract liabilities dominate the other side of the balance sheet as of June 30th, including $33.6 million expected to be recognized as revenue within 12 months.

Jeremy Yaukey-Witter: About $0.9 million of that amount related to our legacy drug discovery service segment. The takeaway? Net loss this quarter is dominated by a non-cash change in the fair value of our digital asset holdings, which are subject to notable volatility. Adjusted EBITDA strips out that valuation adjustment and the other add backs noted, which management believes do not directly reflect our ongoing operating performance. Now that the Q2 reviewed, let's turn to the quarters ahead and look at when our signed book is expected to begin recognizing revenue. Our business model involves both short and long-term contracts with customers. Certain contracts, particularly under our Access model, commence service delivery as quickly as 48 hours after contract execution. While others, particularly under our Build model, don't reach ready for service milestones until about 4 months from contract signing.

Speaker #4: The takeaway? Net loss this quarter is dominated by a non-cash change in the fair value of our digital asset holdings. Which are subject to notable volatility.

Speaker #3: And another $27.1 million of long-term contract liabilities. As a reminder, these contract liabilities represent prepayments made by customers to us in connection with executed contracts for compute.

Speaker #4: Adjusted EBITDA strips out that valuation adjustment and the other add-backs noted, which management believes do not directly reflect our ongoing operating performance. Now, with the second quarter reviewed, let's turn to the quarters ahead and look at when our signed book is expected to begin recognizing revenue.

Speaker #3: That brings me to Adjusted EBITDA, which we're introducing this quarter. We believe Adjusted EBITDA serves as a meaningful performance measure for investors to evaluate our operating performance and to compare the financial results between periods.

Speaker #4: Our business model involves both short and long-term contracts with customers. Certain contracts, particularly under our access model, commence service delivery as quickly as 48 hours after contract execution.

Speaker #3: I want to be specific about what that metric does and doesn't exclude. Adjusted EBITDA adds back interest, income taxes, depreciation, amortization, as well as stock-based compensation.

Speaker #4: While others, particularly under our build model, don't reach ready for service milestones until about four months from contract signing. To model these contracts together, we utilize operating metrics including monthly run rate and annualized run rate.

Speaker #3: Standard EBITDA add-backs. It also excludes the unrealized non-cash fair value adjustment on our digital assets—$11.8 million of the $13.1 million loss on digital assets this quarter.

Speaker #4: A contract-only enters our run rate once it's deployed and billing, not when it's signed. And that's the story that this slide tells. Through the end of Q2, we had signed 317 million in total contract value.

Jeremy Yaukey-Witter: To model these contracts together, we utilize operating metrics including monthly run rate and annualized run rate. A contract only enters our run rate once it's deployed and billing, not when it's signed, and that's the story that this slide tells. Through the end of Q2, we had signed $317 million in total contract value. Our first full quarter of compute services, including the $260 million landmark contract we announced in April. Since then, in the H1 of Q3, that's about 6 weeks, we've added an incremental $2.9 billion comprising the 3 Build contracts announced in July. Year to date, through August, that's more than $3.2 billion in total contract value in under 8 months. Here's what that means for run rate. Our exit run rate leaving Q2 was $37 million annualized.

Speaker #3: What it does not exclude is the realized portion, about $1.3 million, including ATH, that we actually used to pay for compute that we sold to customers.

Speaker #4: Our first full quarter of compute services including the 260 million landmark contract we announced in April. Since then, in the first half of Q3, that's about six weeks, we've had an incremental 2.9 billion comprising the three build contracts announced in July.

Speaker #3: On that basis, adjusted EBITDA was approximately negative $4.9 million for the quarter. About $0.9 million of that amount related to our legacy drug discovery service segment.

Speaker #3: The takeaway? Net loss this quarter is dominated by a non-cash change in the fair value of our digital asset holdings, which are subject to notable volatility.

Speaker #4: Year-to-date through August, that's more than 3.2 billion in total contract value in under eight months. Here's what that means for run rate. Our exit run rate leaving Q2 was 37 million, annualized as the April cluster goes live in Q3, that climbs to roughly 139 million including further growth to date under our access model.

Speaker #3: Adjusted EBITDA strips out that valuation adjustment and the other add-backs noted, which management believes do not directly reflect our ongoing operating performance. Now, with the second quarter reviewed, let's turn to the quarters ahead and look at when our signed book is expected to begin recognizing revenue.

Jeremy Yaukey-Witter: As the April cluster goes live in Q3, that climbs to roughly $139 million, including further growth to date under our Access model. Once the full signed bulk is deployed, spanning Q4 into Q1 of next year, we expect an annualized run rate north of $696 million. Q2 is just the start of the ramp. Now that I've given you a glimpse of what's to come, Kyle Okamoto will show you what's actually going to be deployed behind these numbers.

Speaker #4: And once the full signed book is deployed, spanning Q4 and to Q1 of next year, we expect an annualized run rate north of 696 million.

Speaker #3: Our business model involves both short- and long-term contracts with customers. Certain contracts, particularly under our access model, commence service delivery as quickly as 48 hours after contract execution.

Speaker #4: Q2 is just the start of the ramp. Now that I've given you a glimpse of what's to come, Kyle will show you what's actually going to be deployed behind these numbers.

Speaker #3: While others, particularly under our build model, don't reach ready-for-service milestones until about four months from contract signing. To model these contracts together, we utilize operating metrics including monthly run rate and annualized run rate.

Speaker #2: Signing contracts is only half the story. Delivering them at this scale is the other half. And that's where Axe earns its margin and returns value to shareholders.

Kyle Okamoto: Signing contracts is only half the story. Delivering them at this scale is the other half, and that is where Axe earns its margin and returns value to shareholders. Every cluster starts with NVIDIA's best silicon, eight B300 GPUs per node, 288 GB of HBM3E memory on every single one. For our largest builds, we go further. The GB300 NVL72, 72 GPUs, and 36 Grace CPUs fused into one rack scale system, sharing that same 288 GB per GPU times 72. We rack it in high density, air-cooled, liquid-cooled, or direct liquid cooling configurations. 64 to 155 KVA per rack. That is not office IT, right? This is an industrial scale AI factory. We connect it with NVIDIA Quantum-X800 InfiniBand, 6.4 terabits per second per node, or 57.6 terabits per second per rack on the GB300. We feed it with attached storage at real scale.

Speaker #3: A contract only enters our run rate once it's deployed and billing—not when it's signed. And that's the story that this slide tells. Through the end of Q2, we had signed $317 million in total contract value.

Speaker #2: Every cluster starts with Nvidia's best silicon. Eight B300 GPUs per node, 288 gigabytes of HBM3E memory on every single one. For our largest builds, we go further.

Speaker #2: The GB300 and VL72, 72 GPUs and 36 gray CPUs fused into one rack scale system. Sharing that same 288 gigabytes per GPU. Times 72.

Speaker #3: Our first full quarter of compute services, including the $260 million landmark contract we announced in April. Since then, in the first half of Q3—that's about six weeks—we've had an incremental $2.9 billion, comprising the three build contracts announced in July.

Speaker #2: We rack it in high-density air-cooled liquid-cooled or direct liquid-cooling configurations. 64 to 155 KVAs per rack. That's not office IT, right? This is an industrial scale AI factory.

Speaker #3: Year-to-date through August, that's more than $3.2 billion in total contract value in under eight months. Here's what that means for run rate: our exit run rate leaving Q2 was $37 million annualized. As the April cluster goes live in Q3, that climbs to roughly $139 million, including further growth to date under our access model.

Kyle Okamoto: 64 to 155 KVA per rack. That is not office IT, right? This is an industrial scale AI factory. We connect it with NVIDIA Quantum-X800 InfiniBand, 6.4 terabits per second per node, or 57.6 terabits per second per rack on the GB300. We feed it with attached storage at real scale.

Speaker #2: We connect it with Infiniband, quantum X800 Infiniband, 6.4 terabits per second per node or 57.6 terabits per second per rack on the GB300s. We feed it with attached storage at real scale.

Speaker #3: And once the full signed book is deployed, spanning Q4 and into Q1 of next year, we expect an annualized run rate north of $696 million.

Speaker #2: We're talking 20 or 40 petabytes and beyond. Through great partners like Weka. And we house all of this in tier three N plus one facilities.

Speaker #3: Q2 is just the start of the ramp. Now that I've given you a glimpse of what's to come, Kyle will show you what's actually going to be deployed behind these numbers.

Kyle Okamoto: We are talking 20 or 40 petabytes and beyond through great partners like WEKA. We house all of this in Tier 3 N+1 facilities, 5, 20, 25, 30 megawatts each, built with room to grow into the next contract before the ink is even dry. Here is the point. It is the whole thesis of our business. At this scale, AI capacity cannot be bought off the shelf. It has to be engineered, or even better, co-engineered with our clients, rack by rack, watt by watt, node by node. That expertise is exactly what our customers are contracting us for, and it is exactly why they come to Axe instead of trying to build it themselves. While we are here in Columbus, Georgia, and we are giving you guys a tour of this data center, it is important to note that we are also building other clusters around the world.

Speaker #2: Five, 20, 25, 30 megawatts each. Built with room to grow into the next contract before the ink is even dry. Here's the point. It's the whole thesis of our business.

Speaker #2: Signing contracts is only half the story. Delivering them at this scale is the other half. And that's where Axe earns its margin and returns value to shareholders.

Speaker #2: At this scale, AI capacity cannot be bought off the shelf. It has to be engineered or even better, co-engineered with our clients. Rack by rack, watt by watt, node by node.

Speaker #2: Every cluster starts with NVIDIA's best silicon: 8 B300 GPUs per node, 288 gigabytes of HBM3E memory on every single one. For our largest builds, we go further.

Speaker #2: That expertise is exactly what our customers, our contracting us for, and it's exactly why they come to Axe instead of trying to build it themselves.

Speaker #2: And while we're here in Columbus, Georgia, and we're giving you guys a tour of this data center, it's important to note that we're also building other clusters around the world.

Kyle Okamoto: While we are here in Columbus, Georgia, and we are giving you guys a tour of this data center, it is important to note that we are also building other clusters around the world.

Speaker #2: So we have a few pictures here on our Sweden cluster in Boden. We're very excited about this one. It's with a great partner. And that cluster is already being built right now.

Kyle Okamoto: We have a few pictures here on our Sweden cluster in Boden. We are very excited about this one. It is with a great partner, and that cluster is already being built right now. We will have to do our next earning release from Sweden, although it might be a little cold that time of year. We will definitely keep the teams updated there. What this cluster is 256 nodes plus spares of B300s, full RoCE v2 on this one, as well as a very large storage cluster also provided by our partner, WEKA, with dedicated circuits to data lakes across Europe, dedicated internet for high-speed inferencing. It is really a multi-purpose cluster that supports both training across that RoCE v2 network fabric, as well as high-speed inferencing. It is a pretty exciting cluster that we expect to go live near the end of this year.

Speaker #2: We'll have to do our next earning release from Sweden. Although it might be a little cold that time of year. But we'll definitely keep the teams updated there.

Speaker #2: What this cluster is, is 256 nodes plus spares of B300s full rocky V2 on this one. As well as a very large storage cluster also provided by our partner Weka.

Speaker #2: With dedicated circuits to data lakes across Europe, dedicated internet. For high-speed inferencing, and it's really a multi-purpose cluster that supports both training across that rocky V2 network fabric, as well as high-speed inferencing.

Speaker #2: So it's a pretty exciting cluster. That we expect to go live near the end of this year. And we'll definitely keep the teams updated on how that goes and provide some more videos and pictures as we go along.

Speaker #3: Here to give you a live video walkthrough of the latest build that Axe Compute is doing for enterprise clients. We're here in wonderful Columbus, Georgia.

Kyle Okamoto: We will definitely keep the teams updated on how that goes and provide some more videos and pictures as we go along. Here to give you a live video walkthrough of the latest build that Axe Compute is doing for our enterprise clients. We are here in wonderful Columbus, Georgia, in a Tier 3 facility, with an active, ongoing build. So forgive me if you hear some construction noise in the background. There are a lot of folks working on this project to get it live for our client as soon as possible. This is an NVIDIA Blackwell B300 cluster of 288 nodes, plus additional shared high-speed storage, CPU nodes for orchestration, Kubernetes, Slurm, et cetera, dedicated networking. So really everything you need for a true AI factory. We will get into each of those components throughout.

Speaker #3: In a tier three facility, with an active ongoing build. So forgive me if you hear some construction noise in the background. There's a lot of folks working on this project to get it live for our client as soon as possible.

Speaker #3: This is a Nvidia Blackwell B300 cluster. Of 288 nodes plus additional shared high-speed storage. CPU nodes for orchestration, Kubernetes, SLURM, etc. Dedicated networking. So really everything you need for a true AI factory.

Speaker #3: And we'll get into each of those components throughout. The real heart of this data center is right here. And these are the Nvidia Blackwell B300 machines.

Speaker #3: Inside each of these machines are eight individual GPUs. Which all can speak to each other, as if they. One unique computer. And then the really cool part is that each of these servers can all talk to each other across what we call an Infiniband network, which basically turns each and every single GPU in this facility into one solid computer, right?

Kyle Okamoto: The real heart of this data center is right here, and these are the NVIDIA Blackwell B300 machines. Inside each of these machines are eight individual GPUs, which all can speak to each other as if they were one unique computer. The really cool part is that each of these servers can all talk to each other across what we call an InfiniBand network, which basically turns each and every single GPU in this facility into one solid computer, right? It can run very high speed, very high scale, artificial intelligence use cases and workflows for our clients. We will get into a little bit about each one of those components throughout, but basically, this is how an AI factory is built. These are not normal racks. These are not normal boxes. This is not an IT environment.

Speaker #3: So it can run very high-speed, very high-scale artificial intelligence use cases and workflows for our clients. So we'll get into a little bit about each one of those components throughout, but basically this is how an AI factory is built.

Speaker #3: These are not normal racks. These are not normal boxes. This is not an IT environment. This takes specialized cooling, specialized air handling, specialized plumbing and electricity work.

Speaker #3: So it really does take a village to build one of these with both the data centers, with the OEMs, the original equipment manufacturers, the data centers, the electricians, plumbers, it's definitely a very large effort.

Kyle Okamoto: This takes specialized cooling, specialized air handling, specialized plumbing and electricity work. It really does take a village to build one of these with both the data centers, with the OEMs, the original equipment manufacturers, the data centers, the electricians, plumbers. It is definitely a very large effort. We are going to walk through that today. As I mentioned, all of these computers and chips are all connected together. The way they do that is each pod or grouping of computers are all connected to an InfiniBand leaf architecture. It is a spine-leaf architecture. These are the leaf switches that connect each of the pods together, and then these leaf switches ultimately all interconnect into a spine. They are replicated for each pod of GPUs. Depending on capacity and redundancy purposes, we can fit so many in each of these leafs and spines.

Speaker #3: So we're going to walk through that today. As I mentioned, all of these computers and chips are all connected together. So the way they do that is each pod or grouping of computers are all connected to an Infiniband leaf architecture.

Speaker #3: So it's a spine leaf architecture. These are the leaf switches. That connect each of the pods together. And then these leaf switches ultimately all interconnect into a spine.

Speaker #3: And so they are replicated for each pod of GPUs, depending on capacity and redundancy purposes. We can fit so many in each of these leafs and spines.

Speaker #3: And then ultimately those are all interconnected together. That allows each and every single GPU on this network to talk to each other as if they were physically connected to each other.

Kyle Okamoto: Ultimately, those are all interconnected together. That allows each and every single GPU on this network to talk to each other as if they were physically connected to each other. It is about 6.4 terabits per second of communication between those GPUs, which is quite a lot of bandwidth. In addition to that, over here, we have high speed storage. Forgive the background noise, as I mentioned. This high-speed storage is provided by our partner, WEKA, who has been a great partner. They have their signature purple façade here on these plates. This high-speed storage is connected to each and every single one of these GPUs. We can move very, very large amounts of data. This cluster is supporting over 20 petabytes of data, which is a lot of different iPhones. I cannot do that math right now.

Speaker #3: It's about 6.4 terabits per second of communication between those GPUs. Which is quite a lot of bandwidth. In addition to that, high-speed storage. Forgive the background noise, as I mentioned.

Speaker #3: This high-speed storage is provided by our partner Weka, who's been a great partner. They have their signature purple facade here on these plates. This high-speed storage is connected to each and every single one of these GPUs.

Speaker #3: So we can move very, very large amounts of data this cluster is supporting over 20 petabytes of data. Which is a lot of different iPhones.

Speaker #3: I can't do that math right now. But basically it allows all of the GPUs in here to talk to this high-speed storage across that network that I mentioned before.

Kyle Okamoto: Basically, it allows all of the GPUs in here to talk to this high-speed storage across that network that I mentioned before, on both the north-south bases. Now I am going to walk you guys over to another part of the data center. We are walking through cold aisle containments right now that are being built. You will see a very similar infrastructure. You will see all of the different servers of the Blackwell B300s, all connected to the leaf architecture, all connected to the spine architecture. Over here, you will see a bunch of management nodes. These allow us to do different things from automated provisioning, advanced monitoring, security hardening, setting up VPNs, managing different applications for our clients like Kubernetes or Slurm, et cetera. You will see more purple boxes over here for even more high-speed storage.

Speaker #3: On both the north-south basis. So now I'm going to walk you guys over to another part of the data center. We're walking through cold aisle containment right now.

Speaker #3: That are being built. And you'll see a very similar infrastructure. You'll see all of the different servers of the Blackwell B300s all connected to the leaf architecture, all connected to the spine architecture.

Speaker #3: And over here you'll see a bunch of management nodes. These allow us to do different things from automated provisioning, advanced monitoring, security hardening, setting up VPNs, managing different applications for our clients like Kubernetes or SLURM, etc.

Speaker #3: You'll see more purple boxes over here for even more high-speed storage. And ultimately behind all of the cabling activities that's going on right now, you'll see some more traditional servers here, right?

Speaker #3: You'll see the Dell boxes here that we're using for some of our bridges and some of our management capabilities. And ultimately what these components do, they each play their role, right?

Kyle Okamoto: Ultimately, behind all of the cabling activities that is going on right now, you will see some more traditional servers here. You will see the Dell boxes here that we are using for some of our bridges and some of our management capabilities. Ultimately what these components do, they each play their role. So there is UFM nodes, there is OOB connectivity for different management capabilities. All of this ties together with what we call an NVIDIA reference architecture or NVIDIA reference design. Full NVIDIA switching throughout, full NVIDIA GPUs throughout, with accoutrements that allow us to add ancillary services to our clients. That is basically it. So thank you guys for coming with us to Columbus, Georgia. We have got a lot of work to do, from containment aisle finishing up tomorrow, to all of the cabling happening now, to get this cluster live as soon as possible.

Speaker #3: So there's UFM nodes, there's OOB connectivity for different management capabilities. All of this ties together with what we call an Nvidia reference architecture or Nvidia reference design, right?

Speaker #3: So full Nvidia switching throughout, full Nvidia GPUs throughout, with accoutrements that allow us to add ancillary services to our clients. And that's basically it.

Speaker #3: So thank you guys for coming with us to Columbus, Georgia. We've got a lot of work to do from containment aisle finishing up tomorrow to all of the cabling happening now to get this cluster live as soon as possible.

Speaker #3: We look forward to the next one. As you can see behind me. And we fully intend to expand and this is the space that we are expanding this cluster into.

Kyle Okamoto: We look forward to the next one, as you can see behind me, and we fully intend to expand. This is the space that we are expanding this cluster into. So it will be one contiguous single spine architecture, three times the size. So while the cluster that I mentioned is already quite large and quite powerful, it will triple up in the next few months. Now, let us shift gears to what is coming ahead. As of this month, we are tracking $5.9 billion in active qualified pipeline, 98 open opportunities across our sales organization. That is nearly double the size of our current signed book, and every week it keeps growing as momentum continues to accelerate. By dollar value, roughly two-thirds of that demand is for Blackwell class GPUs or Vera Rubins. We are talking about B200s, B300s, GB300s, and of course, the latest Vera Rubin chipset.

Speaker #3: So it will be one contiguous single spine architecture. Three times the size. So while the cluster that I mentioned is already quite large and quite powerful, it will triple up in the next few months.

Speaker #3: Now, let's shift gears to what's coming ahead. As of this month, we are tracking 5.9 billion dollars in active qualified pipeline. 98 open opportunities across our sales organization.

Speaker #3: That's nearly double the size of our current signed book. And every week it keeps growing as momentum continues to accelerate. By dollar value, roughly two-thirds of that demand is for Blackwell-class GPUs or Vera Rubins.

Speaker #3: We're talking about B200s, B300s, GB300s, and of course the latest Vera Rubin chipset. Our customers aren't asking for yesterday's hardware. They're asking for the newest, fastest, most powerful silicon Nvidia makes.

Kyle Okamoto: By dollar value, roughly two-thirds of that demand is for Blackwell class GPUs or Vera Rubins. We are talking about B200s, B300s, GB300s, and of course, the latest Vera Rubin chipset.

Kyle Okamoto: Our customers are not asking for yesterday's hardware. They are asking for the newest, fastest, most powerful silicon NVIDIA makes to really power their businesses for the future, not just for the current needs. Also worth noting, clients understand that securing AI infrastructure on a long-term basis is a vital and strategic imperative for their business, which aligns nicely with our equipment ownership model and long-term data center investments. Keep watching this space. We are already fielding significant early demand for NVIDIA's Vera Rubins, the next architecture, ahead of volume shipment. So our customers are already planning generations ahead, and so are we. A pipeline this size really is not a hope. It is a queue. Our job for the rest of this year and beyond is pretty simple. Convert that queue, contract that queue, and turn up additional clusters for our clients.

Speaker #3: To really power their businesses for the future, not just for the current needs. Also worth noting, clients understand that securing AI infrastructure on a long-term basis is a vital and strategic imperative for their business.

Speaker #3: Which aligns nicely with our equipment ownership model and long-term data center investments. And keep watching this space. We're already fielding significant early demand for Nvidia's Vera Rubins.

Speaker #3: The next architecture. Ahead of volume shipment. So our customers are already planning generations ahead. And so are we. A pipeline this size really isn't a hope, right?

Speaker #3: It's a queue. And our job for the rest of this year and beyond is pretty simple. Convert that queue, contract that queue, and turn up additional clusters for our clients.

Speaker #3: So that's really the way we've converted the 3 billion dollars that you just heard about. And as Chris has said to me multiple times, there's many more ahead.

Kyle Okamoto: That is really the way we have converted the $3 billion that you just heard about, and as Chris Miglino has said to me multiple times, there are many more ahead. Shifting gears to the organization. None of this, the contracts, the technology, the pipeline, means anything without the people who build it, which are the most important part of Axe Compute. So let us talk about the team a little bit. Right now, we are actively adding more than 20 people to this organization. Every one of those hires is funded by a contract we have already signed. On deployment and operations, we are increasing our data center engineers, cluster commissioning specialists, our 24 by 7 operations staff, all in advance of standing up these clusters going live this quarter and next. That is all under dedicated VP-level deployment leadership.

Speaker #3: Shifting gears to the organization. None of this, the contracts, the technology, the pipeline means anything without the people who build it. Which are the most important part of excompute.

Speaker #3: So let's talk about the team a little bit. Right now, we are actively adding more than 20 people to this organization. And every one of those hires is funded by a contract we've already signed.

Speaker #3: On deployment and operations, we're increasing our data center engineers, cluster commissioning specialists, our 24 by 7 operation staff, all in advance of standing up these clusters going live this quarter and next.

Speaker #3: And that's all under dedicated VP level deployment leadership. On the infrastructure engineering side, we're adding GPU, CPU, network fabric, storage specialists, the people who really make 5, 15, and 30 megawatt AI factories actually work across both our US and European footprint.

Kyle Okamoto: On the infrastructure engineering side, we are adding GPU, CPU, network fabric storage specialists, the people who really make 5, 15, and 30-megawatt AI factories actually work across both our US and European footprint. On customer support and commercial operations, we are really enhancing our technical account teams, our program management organization, and broadening our enterprise coverage behind those signed contracts and that multi-billion USD pipeline. Behind our next objective, an additional $2 billion in new signings before the end of the year. Our philosophy is pretty simple. We do not staff up on hope. We scale fast to deliver on commitments, locked and loaded, and we hire experienced talent that can really deliver and execute on enterprise-grade support while still providing customers the choices that they deserve. Headcount follows committed revenue on a very disciplined and success basis.

Speaker #3: On customer support and commercial operations, we're really enhancing our technical account teams, our program management organization, and broadening our enterprise coverage behind those signed contracts and that multimillion dollar pipeline.

Speaker #3: And behind our next objective, an additional 2 billion dollars in new signings before the end of the year. Our philosophy is pretty simple. We don't staff up on hope.

Speaker #3: We scale fast to deliver on commitments, locked and loaded. And we hire experienced, talent that can really deliver and execute on enterprise-grade support while still providing customers the choices that they deserve.

Speaker #3: Headcount follows committed revenue on a very disciplined and success basis. That discipline is pretty much what turns a hot pipeline into a durable, profitable company.

Speaker #3: And it's exactly where and why we're built to deliver on everything that you've just heard. I'll now pass it back to Chris to close us out.

Kyle Okamoto: That discipline is pretty much what turns a hot pipeline into a durable, profitable company, and it is exactly where and why we are built to deliver on everything that you have just heard. I will now pass it back to Chris Miglino to close us out. Thank you.

Speaker #3: Thank you.

Speaker #1: So where do we go from here? Our objective is an additional 2 billion dollars in signed contracts before the end of 2026. And as you can see, from what Kyle just presented, I don't think we're going to have a problem hitting that number.

Chris Miglino: Where do we go from here? Our objective is an additional $2 billion in signed contracts before the end of 2026. As you can see from what Kyle Okamoto just presented, I do not think we are going to have a problem hitting that number. We are well on our way, and if things keep going the way that they did in this last quarter, we should exceed that goal. We are excited about that. Just to summarize the quarter. This was the first quarter that we had revenue from the compute business, and you are just going to see that acceleration continue to kick in as we bring more clusters live. As this cluster goes live, you are going to start to see around $20 million, $21 million a quarter just from this location come in.

Speaker #1: We're well on our way. And if things keep going the way that they did in this last quarter, we should exceed that goal. So we're excited about that.

Speaker #1: Then just to summarize the quarter, this was the first quarter that we had revenue from the compute business. And you're just going to see that acceleration continue to kick in as we bring more clusters live.

Speaker #1: So as this cluster goes live, you're going to start to see around 20 million, 21 million dollars a quarter just from this location come in.

Speaker #1: And then as we bring on the other clusters into the end of Q4 and the beginning of Q1, you'll start to see us grow up to the 696 million dollars in ARR for the year.

Chris Miglino: As we bring on the other clusters into the end of Q4, in the beginning of Q1, you will start to see us grow up to the $696 million in ARR for the year. Our job for the balance of this year is to continue to sign more agreements, but also to make sure that we have the infrastructure in place to deploy really solid, amazing clusters globally. We appreciate you being with us here today to hear our story. We are excited about where we are. We are working really hard, and we think that we find ourselves in a really positive place. Thank you for being here and spending the time with us. We look forward to continuing to have you as an investor. If you are new to our story, we look forward to having you join us on this journey.

Speaker #1: So our job for the balance of this year is to continue to sign more agreements but also to make sure that we have the infrastructure in place to deploy really solid amazing clusters globally.

Speaker #1: So we appreciate you being with us here today to hear our story. We're excited about where we are. We're working really hard. And we're we think that we find ourselves in a really positive place.

Speaker #1: So thank you for being here and spending the time with us. We look forward to continuing to have you as an investor. And if you're new to our story, we look forward to you having you join us on this journey.

Chris Miglino: Thank you very much.

Speaker #1: So now I'm going to walk you guys over to another part of the data center. We're walking through cold aisle containment right now that is being built.

Speaker #1: And you'll see a very similar infrastructure: you'll see all of the different servers, the Blackwell B300s, all connected to the Leaf architecture, all connected to the Spine architecture. And over here, you'll see a bunch of management nodes.

Speaker #1: These allow us to do different things, from automated provisioning to advanced monitoring, security hardening, setting up VPNs, managing different applications for our clients like Kubernetes or Slurm, etc.

Speaker #1: You'll see more purple boxes over here for even more high-speed storage. And ultimately, behind all of the cabling activities that are going on right now, you'll see some more traditional servers here, right?

Speaker #1: You'll see the Dell boxes here that we're using for some of our bridges and some of our management capabilities. Ultimately, what these components do is each plays its role, right?

Speaker #1: So there's UFM nodes, there's OOB connectivity for different management capabilities—all of this ties together with what we call an NVIDIA reference architecture, or NVIDIA reference design, right?

Speaker #1: So, full NVIDIA switching throughout, full NVIDIA GPUs throughout, with accoutrements that allow us to add ancillary services to our clients. And that's basically it.

Speaker #1: So thank you guys for coming with us to Columbus, Georgia. We've got a lot of work to do, from containment aisle finishing up tomorrow to all of the cabling happening now, to get this cluster live as soon as possible.

Speaker #1: We look forward to the next one, as you can see behind me, and we fully intend to expand. This is the space that we are expanding this cluster into.

Speaker #1: So, it will be one contiguous, single-spine architecture, three times the size. So, while the cluster that I mentioned is already quite large and quite powerful, it will triple in the next few months.

Speaker #1: Now, let's shift gears to what's coming ahead. As of this month, we are tracking $5.9 billion in active, qualified pipeline, with 98 open opportunities across our sales organization.

Speaker #1: That's nearly double the size of our current signed book, and every week it keeps growing as momentum continues to accelerate. By dollar value, roughly two-thirds of that demand is for Blackwell-class GPUs or Vera Rubins.

Speaker #1: We're talking about B200s, B300s, GB300s, and of course, the latest Vera Rubin chipset. Our customers aren't asking for yesterday's hardware; they're asking for the newest, fastest, most powerful silicon NVIDIA makes.

Speaker #1: To really power their businesses for the future, not just for their current needs. Also worth noting, clients understand that securing AI infrastructure on a long-term basis is a vital and strategic imperative for their business.

Speaker #1: Which aligns nicely with our equipment ownership model and long-term data center investments. And keep watching this space—we're already fielding significant early demand for NVIDIA's Vera Rubins, the next architecture, ahead of volume shipment.

Speaker #1: So, our customers are already planning generations ahead. And so are we. A pipeline this size really isn't a hope, right? It's a queue. And our job for the rest of this year...

Speaker #1: Beyond is pretty simple. Convert that queue, contract that queue, and turn up additional clusters for our clients. So that's really the way we've—the $3 billion that you just heard about, and as Chris has said to me multiple times, there's many more ahead.

Speaker #1: Shifting gears to the organization—none of this, the contracts, the technology, the pipeline—means anything without the people who build it, who are the most important part of Axe Compute.

Speaker #1: So let's talk about the team a little bit. Right now, we are actively adding more than 20 people to this organization, and every one of those hires is funded by a contract.

Speaker #1: We've already signed. On deployment and operations, we're increasing our data center engineers, cluster commissioning specialists, and our 24/7 operations staff—all in advance of standing up these clusters going live this quarter and next.

Speaker #1: And that's all under dedicated VP-level deployment leadership. On the infrastructure engineering side, we're adding GPU, CPU, network fabric, and storage specialists—the people who really make 5-, 15-, and 30-megawatt AI factories actually work across both our U.S. and European footprint.

Speaker #1: On customer support and commercial operations, we're really enhancing our technical account teams, our program management organization, and broadening our enterprise coverage behind those signed contracts and that multi-billion-dollar pipeline.

Speaker #1: And behind our next objective, an additional $2 billion in new signings before the end of the year. Our philosophy is pretty simple: we don't staff up on hope.

Speaker #1: We scale fast to deliver on commitments, locked and loaded, and we hire experienced, talented people that can really deliver and execute on enterprise-grade support while still providing customers the choices that they deserve.

Speaker #1: Headcount follows committed revenue on a very disciplined and successful basis. That discipline is pretty much what turns a hot pipeline into a durable, profitable company.

Speaker #1: And it's exactly where and why we're built to deliver on everything that you've just heard. I'll now pass it back to Chris to close us out.

Speaker #1: Thank you.

Speaker #2: So, where do we go from here? Our objective is an additional $2 billion in signed contracts before the end of 2026. And as you can see from what Kyle just presented, I don't think we're going to have a problem hitting that number.

Speaker #2: We're well on our way, and if things keep going the way that they did in this last quarter, we should exceed that goal. So, we're excited about that.

Speaker #2: Then just to summarize the quarter, this was the first quarter that we had revenue from the compute business. And you're just going to see that acceleration continue to kick in as we bring more clusters live.

Speaker #2: So as this cluster goes live, you're going to start to see around $20 million, $21 million a quarter just from this location come in.

Speaker #2: And then, as we bring on the other clusters into the end of Q4 and the beginning of Q1, you'll start to see us grow up to $696 million in ARR for the year.

Speaker #2: So our job for the balance of this year is to continue to sign more agreements, but also to make sure that we have the infrastructure in place to deploy really solid, amazing clusters globally.

Speaker #2: So we appreciate you being with us here today to hear our story. We're excited about where we are. We're working really hard, and we think that we find ourselves in a really positive place.

Speaker #2: So thank you for being here and spending the time with us. We look forward to continuing to have you as an investor. And if you're new to our story, we will continue.