Q2 2026 Boost Run Inc Earnings Call

August 14, 2026

Operator: Good morning, and thank you for standing by. Welcome to the Boost Run Inc. Q2 2026 earnings call. All participants are currently in listen-only mode. After the speaker's remarks, there will be a question and answer session. To ask a question, you will need to press star 1 1 on your touchtone telephone. Please note this call may be recorded. I would like to turn the call over to Cassidy Patterson, Investor Relations. Please go ahead.

Operator: Good morning, and thank you for standing by. Welcome to the Boost Run Inc. Q2 2026 earnings call. All participants are currently in listen-only mode. After the speaker's remarks, there will be a question and answer session. To ask a question, you will need to press star one, one on your touchtone telephone. Please note this call may be recorded. I would like to turn the call over to Cassidy Patterson, Investor Relations. Please go ahead.

Speaker #1: Good morning, and thank you for standing by. Welcome to the Boost Run Inc. Q2 2026 earnings call. All participants are currently in listen-only mode.

Speaker #1: After the speaker's remarks, there will be a question-and-answer session. To ask a question, you will need to press star one-one on your touch-tone telephone.

Speaker #1: Please note, this call may be recorded. I would now like to turn the call over to Cassidy Patterson, Investor Relations. Please go ahead.

Speaker #2: Thank you, and good morning, everyone. Welcome to the Boost Run Q2 2026 earnings conference call. Joining me on the call today are Andrew Karos, Founder and CEO; Eric Guckel, CFO; and Harry Georgiakopoulos, COO.

Cassidy Patterson: Thank you, and good morning, everyone. Welcome to Boost Run's Q2 2026 earnings conference call. Joining me on the call today are Andrew Karos, Founder and CEO, Erik Guckel, CFO, and Harry Georgakopoulos, COO.

Speaker #2: Before we begin, I'd like to remind you that today's discussion will include forward-looking statements within the meaning of the Federal Securities Law, including statements regarding our expected future financial performance, annual recurring revenue, contracted revenue backlog, net cash flow margin, and capital expenditure levels.

Cassidy Patterson: Before we begin, I'd like to remind you that today's discussion will include forward-looking statements within the meaning of the Federal Securities law, including statements regarding our expected future financial performance, annual recurring revenue, contracted revenue backlog, net cash flow margin, and capital expenditure levels.

Speaker #2: Actual results may differ materially from those contemplated by these statements. Factors that could cause results to differ are described in our filings with the SEC, including the risk factor section of our most recent Form 10-Q.

Cassidy Patterson: Actual results may differ materially from those contemplated by these statements. Factors that could cause results to differ are described in our filings with the SEC, including the Risk Factors section of our most recent Form 10-Q. We undertake no obligation to update these statements except as required by law.

Speaker #2: We undertake no obligation to update these statements, except as required by law. We will also discuss certain non-GAAP financial measures, including ARR, run-rate revenue, net cash flow margin, and our TCV/CAPEX ratio.

Cassidy Patterson: We will also discuss certain non-GAAP financial measures, including ARR, run rate revenue, net cash flow margin, and our TCV/CapEx ratio. These measures should not be considered in isolation or as substitutes for the most directly comparable measures prepared in accordance with GAAP and may not be comparable to similarly titled measures used by other companies. A reconciliation of each historical non-GAAP measure to the most directly comparable GAAP measure is included in the appendix in today's investor presentation. With that, I'll turn the call over to Andrew.

Speaker #2: These measures should not be considered in isolation or as substitutes for the most directly comparable measures prepared in accordance with GAAP, and may not be comparable to similarly titled measures used by other companies.

Speaker #2: A reconciliation of each historical non-GAAP measure to the most directly comparable GAAP measure is included in the appendix of today's investor presentation. And with that, I'll turn the call over to Andrew.

Speaker #3: Good morning, everyone. Thank you for joining us. This is our first earnings call as a public company. I am not going to spend time on how we got here.

Andrew Karos: Good morning, everyone. Thank you for joining us. This is our first earnings call as a public company. I am not going to spend time on how we got here. I want to talk about where we are going. This team built Boost Run from the ground up, and we have never been more excited about what is in front of us. I will cover the results briefly, spend most of my time on how we run this business, and Erik will then take you through the financials.

Speaker #3: I want to talk about where we are going. This team built Boost Run from the ground up, and we have never been more excited about what is in front of us.

Speaker #3: I will cover the results briefly, spend most of my time on how we run this business, and Eric will then take you through the financials.

Speaker #3: To set the context of today's discussion, Boost Run today is roughly a $1.6 billion company, yet we sit in the same conversations, compete for the same customers, and participate in the same NVIDIA programs as companies 10 times our size.

Andrew Karos: To set the context of today's discussion, Boost Run today is roughly a $1.6 billion company, yet we sit in the same conversations, compete for the same customers, and participate in the same NVIDIA programs as companies 10 times our size. This access is earned. We believe that if we continue to execute, Boost Run has significant opportunity to grow from here.

Speaker #3: This access is earned. We believe that if we continue to execute, Boost Run has significant opportunity to grow from here. We believe Boost Run will play a major role in the AI revolution.

Andrew Karos: We believe Boost Run will play a major role in the AI revolution, and what we hear from customers and partners every day gives us that further conviction. Partners choose Boost Run because we bring capacity online faster than the market expects, in accordance with reference architecture at compelling economics, and with a compliance posture that regulated industries like financial services and healthcare demand.

Speaker #3: And what we hear from customers and partners every day gives us that further conviction. Partners choose Boost Run because we bring capacity online faster than the market expects, in accordance with reference architecture, at compelling economics, and with the compliance posture that regulated industries like financial services and healthcare demand.

Speaker #3: Our pipeline today is the largest in our history—in project size, number of opportunities, and diversity and quality of customer. Quarterly update: Q2 revenue was $31.1 million, up approximately 270% year over year, and approximately 260% from the first quarter.

Andrew Karos: Our pipeline today is the largest in our history in project size, number of opportunities, and diversity and quality of customer. Quarterly update. Q2 revenue was $31.1 million, up approximately 270% year over year and approximately 260% from the first quarter. We signed significant contracts worth approximately $1 billion in TCV in Q2. Long-term contracted revenue for TCV stands at $1.9 billion, with an average duration of approximately 3 years and an average prepayment of 22%.

Andrew Karos: Our pipeline today is the largest in our history in project size, number of opportunities, and diversity and quality of customer. Quarterly update. Q2 revenue was $31.1 million, up approximately 270% year over year and approximately 260% from the Q1. We signed significant contracts worth approximately $1 billion in TCV in Q2. Long-term contracted revenue for TCV stands at $1.9 billion, with an average duration of approximately 3 years and an average prepayment of 22%.

Speaker #3: We signed significant contracts worth approximately $1 billion in TCV in Q2. Long-term contracted revenue, or TCV, stands at $1.9 billion, with an average duration of approximately three years and an average prepayment of 22%.

Speaker #3: We obtained prepayment on every deal we close. We expect to continue deploying capacity through the fiscal year and into Q1 2027, bringing the full $1.9 billion of TCV live in production.

Andrew Karos: We obtain prepayment on every deal we close. We expect to continue deploying capacity through fiscal year and into Q1 2027, bringing the full $1.9 billion of TCV live in production. We operate 6 data center locations with 3 more coming online over the next 6 months, and our expanded partnerships bring total accessibility to 253 megawatts, with more to come. We currently expect to exit fiscal 2026 with approximately $400 million of annualized reoccurring revenue. Our $1.44 billion purchase agreement with Dell is essentially fully committed and allocated, and we are in the process of a strategic procurement of an additional $4 billion to $5 billion of compute hardware with multiple OEMs. Upon completion on the terms we are pursuing, that would be a step change in the scale of this company, anchored by contracted demand and pipeline visibility, and it would allow us to monetize the power commitments we can access today.

Speaker #3: We operate six data center locations, with three more coming online over the next six months. Our expanded partnerships bring total accessibility to 253 megawatts, with more to come.

Speaker #3: We currently expect to exit fiscal 2026 with approximately $400 million of annualized recurring revenue. Our $1.44 billion purchase agreement with Dell is essentially fully committed and allocated.

Andrew Karos: We currently expect to exit fiscal 2026 with approximately $400 million of annualized reoccurring revenue. Our $1.44 billion purchase agreement with Dell is essentially fully committed and allocated, and we are in the process of a strategic procurement of an additional $4 billion to $5 billion of compute hardware with multiple OEMs. Upon completion on the terms we are pursuing, that would be a step change in the scale of this company, anchored by contracted demand and pipeline visibility, and it would allow us to monetize the power commitments we can access today.

Speaker #3: And we are in the process of a strategic procurement of an additional $4 to $5 billion of compute hardware with multiple OEMs. Upon completion, on the terms we are pursuing, that would be a step change in the scale of this company, anchored by contracted demand and pipeline visibility, and it would allow us to monetize the power commitments we can access today.

Speaker #3: We are not speculating on hardware. We invest in capacity based on visible trends and continued customer interactions, positioning ourselves ahead of the market rather than reacting to it.

Andrew Karos: We are not speculating on hardware. We invest in capacity based on visible trends and continued customer interactions, positioning ourselves ahead of the market rather than reacting to it. We look forward to sharing exciting announcements over the coming months, new customer agreements, expanded capacity partnerships, and further progress on this procurement. Demand has not been our constraint to date. Everything we sold this quarter was contracted before hardware was energized. Inference demand is currently heaviest, and we see no ceiling on it. AI adoption is moving from experimentation into production faster than customers can source capacity. We compete on the same calls for the same customers as providers many times our size. Quality wins those conversations. We are in active discussions with some of the largest GPU consumers in the world, with requirements ranging from 10,000 to 50,000 GPUs.

Speaker #3: And we look forward to sharing exciting announcements over the coming months, including new customer agreements, expanded capacity partnerships, and further progress on this procurement. Demand has not been our constraint to date.

Speaker #3: Everything we sold this quarter was contracted before hardware was energized. Inference demand is currently heaviest, and we see no ceiling on it. AI adoption is moving from experimentation into production, faster than customers can source capacity.

Andrew Karos: Everything we sold this quarter was contracted before hardware was energized. Inference demand is currently heaviest, and we see no ceiling on it. AI adoption is moving from experimentation into production faster than customers can source capacity. We compete on the same calls for the same customers as providers many times our size.

Speaker #3: We compete on the same calls for the same customers as providers many times our size. And quality wins those conversations. We are in active discussions with some of the largest GPU consumers in the world, with requirements ranging from 10,000 to 50,000 GPUs. Those discussions are not yet contracts, and we will announce them only when they are.

Andrew Karos: Quality wins those conversations. We are in active discussions with some of the largest GPU consumers in the world, with requirements ranging from 10,000 to 50,000 GPUs. Those discussions are not yet contracts, and we will announce them only when they are. Here is the math that matters. Given the choice, under the current market conditions, we preferentially deploy 4 25-megawatt sites over 100-megawatt sites every time.

Andrew Karos: Those discussions are not yet contracts, and we will announce them only when they are. Here is the math that matters. Given the choice, under the current market conditions, we preferentially deploy 4 25-megawatt sites over 100-megawatt sites every time. 4 sites come online faster and in parallel, using a templatized design that has been battle tested across hardware generations and locations. Same capacity delivered sooner with less risk, repeated throughout the year. That is a multibillion-dollar capacity. The right question is whether we can run that playbook multiple times a year. We built this company to do exactly that. A moment on NVIDIA, because the partnership is central to our strategy.

Speaker #3: But here is the math that matters. Given the choice, under the current market conditions, we are preferentially deployed for 25-megawatt sites over 100-megawatt sites every time.

Speaker #3: Four sites come online faster and in parallel, using a templatized design that has been battle-tested across hardware generations and locations. Same capacity, delivered sooner, with less risk.

Andrew Karos: 4 sites come online faster and in parallel, using a templatized design that has been battle tested across hardware generations and locations. Same capacity delivered sooner with less risk, repeated throughout the year. That is a multibillion-dollar capacity. The right question is whether we can run that playbook multiple times a year. We built this company to do exactly that.

Speaker #3: Repeated throughout the year, that is a multi-billion dollar capacity. The right question is whether we can run that playbook multiple times a year.

Speaker #3: We built this company to do exactly that. A moment on NVIDIA, because the partnership is central to our strategy. Boost Run is an NVIDIA cloud partner and an NVIDIA exemplar cloud.

Andrew Karos: A moment on NVIDIA, because the partnership is central to our strategy. Boost Run is an NVIDIA cloud partner and an NVIDIA Exemplar Cloud, one of the smaller number of providers strictly adhering to NVIDIA's reference architecture, and every certification we earn opens the door to the next customer.

Andrew Karos: Boost Run is an NVIDIA cloud partner and an NVIDIA Exemplar Cloud, one of the smaller number of providers strictly adhering to NVIDIA's reference architecture, and every certification we earn opens the door to the next customer. We work directly with NVIDIA on standardized capacity designs that we deploy consistently across sites, all of which are approved to conform with NVIDIA reference architecture standards. While our platform is architected to support and accelerate at scale, NVIDIA's next generation technologies sit at the center of our roadmap. Our ongoing collaboration gives us meaningful visibility into what's coming, and together we're exploring deployments at scale that could meaningfully expand our footprint. Partnerships like this are built on execution, and that remains our focus. Boost Run is built around four core inputs that drive our continued growth. One, the customer. Deliberately diversified portfolio selected on sector, project size, concentration, and credit worthiness.

Speaker #3: We are one of the smaller number of providers strictly adhering to NVIDIA's reference architecture, and every certification we earn opens the door to the next customer.

Speaker #3: We work directly with NVIDIA on standardized capacity designs that we deploy consistently across sites, all of which are approved to conform with NVIDIA reference architecture standards.

Andrew Karos: We work directly with NVIDIA on standardized capacity designs that we deploy consistently across sites, all of which are approved to conform with NVIDIA reference architecture standards. While our platform is architected to support and accelerate at scale, NVIDIA's next generation technologies sit at the center of our roadmap.

Speaker #3: While our platform is architected to support and accelerate at scale, NVIDIA's next-generation technologies sit at the center of our roadmap. Our ongoing collaboration gives us meaningful visibility into what's coming, and together, we're exploring deployments at scale that could meaningfully expand our footprint.

Andrew Karos: Our ongoing collaboration gives us meaningful visibility into what's coming, and together we're exploring deployments at scale that could meaningfully expand our footprint. Partnerships like this are built on execution, and that remains our focus. Boost Run is built around four core inputs that drive our continued growth.

Speaker #3: Partnerships like this are built on execution, and that remains our focus. Boost Run is built around four core inputs that drive our continued growth.

Speaker #3: One, the customer. Deliberately diversified portfolio selected on sector, project size, concentration, and creditworthiness. Reached through direct sales, channel partners, and Boost Run's platform. For on-demand access.

Andrew Karos: One, the customer. Deliberately diversified portfolio selected on sector, project size, concentration, and credit worthiness. Reached through direct sales, channel partners, and Boost Run's platform for on-demand access. Second, co-location. We do not own our data centers. We partner with multiple providers and align CapEx with our expanded footprint. Third, access to hardware. A multi-forward-looking approach with our OEM partners and NVIDIA procuring in advance to meet customer demand in a capital efficient manner.

Andrew Karos: Reached through direct sales, channel partners, and Boost Run's platform for on-demand access. Second, co-location. We do not own our data centers. We partner with multiple providers and align CapEx with our expanded footprint. Third, access to hardware. A multi-forward-looking approach with our OEM partners and NVIDIA procuring in advance to meet customer demand in a capital efficient manner. Fourth, finance. Strong relationships with multiple finance partners, allowing us to scale responsibly through prudent use of leverage across short and long-term structures. We run this company with a focus on operating cash flow by partnering rather than owning data centers. We avoid tying up billions in real estate, eliminate multi-year lead times, and keep capital pointed at revenue-generating hardware. The discipline shows in the numbers. Adjusted SG&A was roughly $6.4 million against $31.1 million of revenue.

Speaker #3: Second, co-location. We do not own our data centers; we partner with multiple providers and align CapEx with our expanded footprint. Third, access to hardware.

Speaker #3: A multi-forward-looking approach with our OEM partners and NVIDIA, procuring in advance to meet customer demand in a capital-efficient manner. Fourth, finance. Strong relationships with multiple finance partners allow us to scale responsibly through prudent use of leverage across short- and long-term structures.

Andrew Karos: Fourth, finance. Strong relationships with multiple finance partners, allowing us to scale responsibly through prudent use of leverage across short and long-term structures. We run this company with a focus on operating cash flow by partnering rather than owning data centers. We avoid tying up billions in real estate, eliminate multi-year lead times, and keep capital pointed at revenue-generating hardware.

Speaker #3: We run this company with a focus on operating cash flow, by partnering rather than owning data centers. We avoid tying up billions in real estate, eliminate multi-year lead times, and keep capital pointed at revenue-generating hardware.

Speaker #3: The discipline shows in the numbers. Adjusted SG&A was roughly $6.4 million against $31.1 million of revenue—about 20%, meaningfully below our peer group, with a reconciliation in our supplemental materials.

Andrew Karos: The discipline shows in the numbers. Adjusted SG&A was roughly $6.4 million against $31.1 million of revenue. About 20% meaningfully below our peer group with the reconciliation in our supplemental materials. We use the technology we sell. We run AI inference across our own operations, and productivity gains are real. How do we finance profitability growth? Six steps. A rigorous execution plan for every project with detailed project management and delivery milestones.

Andrew Karos: About 20% meaningfully below our peer group with the reconciliation in our supplemental materials. We use the technology we sell. We run AI inference across our own operations, and productivity gains are real. How do we finance profitability growth? Six steps. A rigorous execution plan for every project with detailed project management and delivery milestones. A required prepayment on every customer agreement, averaging 22% of TCV. Those prepayments are combined with the operating cash flow, and where needed, balance sheet equity to finance each project. That combination is intended to position every project to generate positive project NOI. As contract duration extends, our TCV to CapEx ratio continues to increase to 1.4 and above. We optimize duration to capture the on-demand market, which delivers higher pricing and higher margins through our purpose-built Boost Run platform.

Speaker #3: And we use the technology we sell. We run AI inference across our own operations, and the productivity gains are real. So, how do we finance profitability growth?

Speaker #3: Six steps: a rigorous execution plan for every project, with detailed project management and delivery milestones. We require prepayment on every customer agreement, averaging 22% of PCV.

Andrew Karos: A required prepayment on every customer agreement, averaging 22% of TCV. Those prepayments are combined with the operating cash flow, and where needed, balance sheet equity to finance each project. That combination is intended to position every project to generate positive project NOI. As contract duration extends, our TCV to CapEx ratio continues to increase to 1.4 and above. We optimize duration to capture the on-demand market, which delivers higher pricing and higher margins through our purpose-built Boost Run platform.

Speaker #3: Those prepayments are combined with the operating cash flow and, where needed, balance sheet equity to finance each project. That combination is intended to position every project to generate positive project NOI.

Speaker #3: As contract duration extends, our TCV-to-CapEx ratio continues to increase to 1.4 and above. We optimize duration to capture the on-demand market, which delivers higher pricing and higher margins through our purpose-built Boost Run platform.

Speaker #3: On that last point, currently more than 12% of our revenue comes from short-term, on-demand contracts through the Boost Run platform. That is an essential portfolio construction, carrying higher pricing and higher margins, and very few in our space have sustained it at this scale.

Andrew Karos: On that last point, currently more than 12% of our revenue comes from short-term on-demand contracts through the Boost Run platform. That is an essential portfolio construction, carrying higher pricing and higher margins, and very few in our space have sustained it at this scale. It is a durable competitive advantage. Erik, over to you.

Speaker #3: It is a durable, competitive advantage. Eric, over to you.

Speaker #2: Thank you, Andrew. And good morning, everyone. I am incredibly proud of the financial foundation we have built. Our second quarter results reflect both the aggressive scaling of our infrastructure and the unique accounting dynamics of closing our go-public transaction.

Erik Guckel: Thank you, Andrew, and good morning, everyone. I am incredibly proud of the financial foundation we have built. Our Q2 results reflect both the aggressive scaling of our infrastructure and the unique accounting dynamics of closing our go public transaction. For the 3 months ended 30 June 2026, total revenue was $31.1 million, a 270% increase from $8.4 million in the prior year period. This was driven by lease revenue from our GPU rental fleet as we deployed new server capacity to meet our backlog and continued to deploy long-term bespoke assets for our customers. This growth is consistent with the trajectory we've shown investors with our annual recurring revenue growing from $30 million at the end of 2025 to $145 million as of June, and we currently expect to reach approximately $400 million by year-end.

Speaker #2: For the three months ended June 30, 2026, total revenue was $31.1 million, a 270% increase from $8.4 million in the prior year period.

Speaker #2: This was driven by lease revenue from our GPU rental fleet as we deployed new server capacity to meet our backlog and continued to deploy long-term, bespoke assets for our customers.

Erik Guckel: This was driven by lease revenue from our GPU rental fleet as we deployed new server capacity to meet our backlog and continued to deploy long-term bespoke assets for our customers. This growth is consistent with the trajectory we've shown investors with our annual recurring revenue growing from $30 million at the end of 2025 to $145 million as of June, and we currently expect to reach approximately $400 million by year-end.

Speaker #2: This growth has been consistent with the trajectory we've shown investors, with our annual recurring revenue growing from $30 million at the end of 2025 to $145 million as of June.

Speaker #2: And we currently expect to reach approximately $400 million by year-end. Our total GAAP operating costs and expenses for the quarter were $44 million.

Erik Guckel: Our total GAAP operating costs and expenses for the quarter were $44 million, resulting in a loss from operations of $12.9 million. As Andrew mentioned, we are in a rapid deployment phase. We entered into multiple new finance lease agreements for GPU servers during the H1 of the year in support of our continued project deployment. As a result, depreciation and amortization rose to $18.1 million for the quarter, while cost of revenue, co-location lease cost, and general administrative expenses scaled alongside our operational footprint. Turning to our bottom line, we reported a GAAP net loss of $75 million for the quarter. This result is heavily impacted by one-time non-cash items associated with our public listing, and I'd like to break down the components of the transaction that impacted this result.

Speaker #2: Resulting in a loss from operations of $12.9 million. As Andrew mentioned, we are in a rapid deployment phase. We entered into multiple new finance lease agreements for GPU servers during the first half of the year in support of our continued project deployment.

Speaker #2: As a result, depreciation and amortization rose to $18.1 million for the quarter, while cost of revenue, co-location lease cost, and general administrative expenses scaled alongside our operational footprint.

Erik Guckel: As a result, depreciation and amortization rose to $18.1 million for the quarter, while cost of revenue, co-location lease cost, and general administrative expenses scaled alongside our operational footprint. Turning to our bottom line, we reported a GAAP net loss of $75 million for the quarter. This result is heavily impacted by one-time non-cash items associated with our public listing, and I'd like to break down the components of the transaction that impacted this result.

Speaker #2: Turning to our bottom line, we reported a GAAP net loss of $75 million for the quarter. This result is heavily impacted by one-time non-cash items associated with our public listing, and I'd like to break down the components of the transaction that impacted this result.

Speaker #2: First, because Boost Run transitioned from a non-taxable partnership to a taxable C-Corp entity, upon closing the transaction, we recognized a one-time income tax expense of $55.7 million to establish deferred tax liabilities.

Erik Guckel: First, because Boost Run transitioned from a non-taxable partnership to a taxable C-corp entity upon closing the transaction, we recognized a one-time income tax expense of $55.7 million to establish deferred tax liabilities. This charge is primarily one time in nature. Second, our general administrative expenses include a $7.3 million non-cash stock-based compensation charge for equity awards that vested upon the transaction close. Third, we recorded a $1.4 million loss on early debt extinguishment as we paid off our short-term bridge loans using the transaction proceeds to clear our balance sheet. These one-time non-cash adjustments total $64.4 million. When adjusting for these transaction-related and non-cash items, we believe our underlying operating leverage becomes much clearer. We currently expect to achieve a sustainable net cash flow margin of 15% to 20% moving forward, driven by project cash flows and the substantial upfront payments we collect from our customers.

Speaker #2: This charge is primarily one-time in nature. Second, our general administrative expenses include a $7.3 million non-cash stock-based compensation charge for equity awards that vested upon the transaction close.

Speaker #2: And third, we recorded a $1.4 million loss on early debt extinguishment as we paid off our short-term bridge loans using the transaction proceeds to clear our balance sheet.

Erik Guckel: Third, we recorded a $1.4 million loss on early debt extinguishment as we paid off our short-term bridge loans using the transaction proceeds to clear our balance sheet. These one-time non-cash adjustments total $64.4 million. When adjusting for these transaction-related and non-cash items, we believe our underlying operating leverage becomes much clearer. We currently expect to achieve a sustainable net cash flow margin of 15% to 20% moving forward, driven by project cash flows and the substantial upfront payments we collect from our customers.

Speaker #2: These one-time non-cash adjustments total $64.4 million. When adjusting for these transaction-related and non-cash items, we believe our underlying operating leverage becomes much clearer.

Speaker #2: We currently expect to achieve a sustainable net cash flow margin of 15 to 20 percent moving forward, driven by project cash flows and the substantial upfront payments we collect from our customers.

Speaker #2: As of June 30, we held $128.4 million in total customer deposits: $34.9 million current and $93.5 million long-term. This represents cash already collected for future compute delivery for multiple bespoke projects scheduled for delivery in 2026 and 2027.

Erik Guckel: As of 30 June, we held $128.4 million in total customer deposits, $34.9 million current, and $93.5 million long-term, representing cash already collected for future compute delivery for multiple bespoke projects scheduled for delivery in 2026 and 2027. Our balance sheet is strong. We ended the quarter with $120.2 million in unrestricted cash, plus an additional $13 million in restricted cash securing our data center letter of credit, bolstered by $114.1 million in net proceeds from the business combination. Additionally, we saw $43.4 million in cash proceeds from the exercise of 4,112,176 public warrants. As of 12 August, our current liquidity remains solid with $134.7 million of unrestricted cash on hand. We continue to sign new agreements and have also activated a warrant exercise within the boundaries of our transaction that continues to augment and simplify the balance sheet. The warrant exercise period expires on 20 August.

Speaker #2: Our balance sheet is strong. We ended the quarter with $120.2 million in unrestricted cash, plus an additional $13 million in restricted cash securing our data center letter of credit, bolstered by $114.1 million in net proceeds from the business combination.

Erik Guckel: Our balance sheet is strong. We ended the quarter with $120.2 million in unrestricted cash, plus an additional $13 million in restricted cash securing our data center letter of credit, bolstered by $114.1 million in net proceeds from the business combination. Additionally, we saw $43.4 million in cash proceeds from the exercise of 4,112,176 public warrants.

Speaker #2: Additionally, we saw $43.4 million in cash proceeds from the exercise of 4,112,176 public warrants. As of August 12, our current liquidity remains solid, with $134.7 million of unrestricted cash on hand.

Erik Guckel: As of 12 August, our current liquidity remains solid with $134.7 million of unrestricted cash on hand. We continue to sign new agreements and have also activated a warrant exercise within the boundaries of our transaction that continues to augment and simplify the balance sheet. The warrant exercise period expires on 20 August.

Speaker #2: We continue to sign new agreements and have also activated a warrant exercise within the boundaries of our transaction, which continues to augment and simplify the balance sheet.

Speaker #2: The warrant exercise period expires on August 20. As of August 12, we have realized exercise proceeds of $74.5 million and continue to anticipate further exercise ahead of the deadline.

Erik Guckel: As of 12 August, we have realized exercise proceeds of $74.5 million and continue to anticipate further exercise ahead of the deadline. All short-term bridge debt was extinguished at transaction closed. Our active backlog continues to grow as we strengthen existing partnerships in the AI inference and training sector while diversifying our exposure to financial services and healthcare, leveraging our deep expertise and certifications in both markets. Our total contract value, TCV, is currently $1.9 billion, supported by new long-term three to four-year agreements, and our 2027 pipeline is built out for success. We remain well-capitalized to execute on our strategy and deliver long-term value to our shareholders. Looking ahead to the rest of 2026, we believe our visibility is exceptional.

Speaker #2: All short-term bridge debt was extinguished at transaction close. Our active backlog continues to grow as we strengthen existing partnerships in the AI inference and training sector, while diversifying our exposure to financial services and health care, leveraging our deep expertise and certifications in both markets.

Speaker #2: Our total contract value, or TCV, is currently $1.9 billion, supported by new long-term, three- to four-year agreements, and our 2027 pipeline is built out for success.

Erik Guckel: Our total contract value, TCV, is currently $1.9 billion, supported by new long-term three to four-year agreements, and our 2027 pipeline is built out for success. We remain well-capitalized to execute on our strategy and deliver long-term value to our shareholders. Looking ahead to the rest of 2026, we believe our visibility is exceptional.

Speaker #2: We remain well-capitalized to execute on our strategy and deliver long-term value to our shareholders. Looking ahead to the rest of 2026, we believe our visibility is exceptional.

Speaker #2: We have an established backlog, deeply qualified pipelines, and we continue to aggressively secure the co-location power and hardware required to meet our customers' needs through the 2027 and 2028 period.

Erik Guckel: We have an established backlog, deep qualified pipelines, and we continue to aggressively secure the co-location, power, and hardware required to meet our customers' needs through the 2027 and 2028 period. Our assigned projects are in active deployment in support of our financial projections, and we are expecting to hand over four projects by year-end. We continue to innovate on financing structures beyond the equipment financing approach used to date and expect to provide additional color and progress on this over the next quarter. I will now hand back to Andrew for his closing remarks.

Speaker #2: Our signed projects are in active deployment in support of our financial projections, and we are expecting to hand over four projects by year-end. We continue to innovate on financing structures beyond the equipment financing approach used to date, and expect to provide additional color and progress on this over the next quarter.

Speaker #2: I'll now hand back to Andrew for his closing remarks.

Speaker #1: Heading into the second half, we continue to execute the backlog, bring new sites online, and convert pipeline into multi-year commitments. We reaffirm our fiscal 2026 target of approximately $400 million in exit ARR, with a cash flow discipline that defines this company.

Andrew Karos: Heading into the H2, we continue to execute the backlog, bring new sites online, and convert pipeline into multi-year commitments. We reaffirm our fiscal 2026 target of approximately $400 million in exit ARR with a cash flow discipline that defines this company. We believe the AI revolution is in its earliest innings, and Boost Run is built to play a major role in it. To our customers, our partners, NVIDIA, Dell, Lenovo, and the Boost Run team, thank you. At this point, we are more than happy to take any questions from those on the call.

Speaker #1: We believe the AI revolution is in its earliest innings, and Boost Run is built to play a major role in it. To our customers, our partners—NVIDIA, Dell, Lenovo—and the Boost Run team: thank you.

Speaker #1: At this point, we are more than happy to take any questions from those on the call.

Speaker #3: Thank you. If you'd like to ask a question, please press *11. If your question has been answered and you'd like to remove yourself from the queue, press *11 again.

Operator: Thank you. If you would like to ask a question, please press star one one. If your question has been answered and you would like to remove yourself from the queue, press star one one again. Our first question comes from Gil Luria with D.A. Davidson. Your line is open.

Speaker #3: Our first question comes from Gil Luria with D.A. Davidson. Your line is open.

Speaker #4: Good morning. I just have a couple of questions. So the first one is about your approach: you're adding capacity very quickly, and you can use it in a couple of different ways.

Gil Luria: Good morning. Just have a couple. The first one is in terms of approach. You are adding capacity very quickly, and you can use it in a couple of different ways. You can sign large agreements with some of the large labs that have a tremendous amount of demand locked out in for a few years, or you can sell more discreet, smaller pieces, smaller time frames. What is your approach at the spot market, which is much, much more favorable right now but will not give you as much visibility longer term. What is your approach for deciding how to divide up that capacity?

Speaker #4: You can sign large agreements with some of the large labs that have a tremendous amount of demand, lock that in for a few years, or you can sell more discrete, smaller pieces, smaller time frames. What's your approach?

Speaker #4: At the spot market, which is much, much more favorable right now, but we'll give you as much visibility longer term. What's your approach for deciding how to divide up that capacity?

Speaker #5: Hey, Gil. Nice to hear from you. Thanks. So, I'm back to your question: what approach are we taking towards the demand in the spot market?

Andrew Karos: Hey, Gil, nice to hear from you. Thanks. Unpacking your question, what approach are we taking towards the demand in spot market? I think I first want to identify anytime you look at Boost Run, essentially when you peel back everything, number one is the risk management aspect. What does that mean? That means we have to have a certain amount of time duration allocated to each time slot. When we started Boost Run from scratch, we did not back out of that thought process. What that means is we started with on-demand, and we started in the spot market, and it is something we understand very well. Then we grew to 2-month, to 3-month, to 1-year, to 2-year, to 3-year contracts. Now we are up to 4, and now entering into future agreements that are even longer.

Speaker #5: So I think I first want to identify, anytime you look at Boost Run, essentially when you peel back everything, number one is the risk management aspect.

Speaker #5: So what does that mean? That means we have to have a certain amount of time duration allocated to each time slot. So when we started Boost Run from scratch, we didn't back out of that thought process.

Andrew Karos: When we started Boost Run from scratch, we did not back out of that thought process. What that means is we started with on-demand, and we started in the spot market, and it is something we understand very well. Then we grew to 2-month, to 3-month, to 1-year, to 2-year, to 3-year contracts. Now we are up to 4, and now entering into future agreements that are even longer.

Speaker #5: So what that means is we started with on demand. We started in the spot market and it's something we understand very well. And then we grew to two-month to three-month to one-year to two-year to three-year contracts.

Speaker #5: Now we're up to four, and now entering into future agreements that are even longer. So the key part is, what type of margins are we getting in that front-end spot market and on demand?

Andrew Karos: The key part is what type of margins are we getting in that front-end spot market and on-demand, and on a comparable to the further out on the curve. But it is also important to understand that going further out and locking in pricing is obviously risk management mitigation. The driving factor, Gil, is what supply do we have? How much do we want to put on there? Then also understanding our pay-down of our debt structure as well. I could talk at length about this, but you also have to understand when you get into the financing and you get into the debt structure, a lot of times you will hit walls without having proper debt structure because you are not going to see things financed that are "on-demand." What does that mean? That means you got to go back to day one how we started.

Speaker #5: And on a comparable to the further out on the curve, but it's also important to understand that going further out and locking in pricing is obviously risk management mitigation.

Speaker #5: So the driving factor, Gil, is what supply do we have, how much do we want to put on there, and then also understanding our paydown of our debt structure as well.

Andrew Karos: Then also understanding our pay-down of our debt structure as well. I could talk at length about this, but you also have to understand when you get into the financing and you get into the debt structure, a lot of times you will hit walls without having proper debt structure because you are not going to see things financed that are "on-demand." What does that mean? That means you got to go back to day one how we started. We self-funded with cash, and that allowed us to participate in the spot market, and now we are monetizing it then and now as well.

Speaker #5: I could talk at length about this, but you also have to understand, when you get into the financing and you get into the debt structure, a lot of times you'll hit walls without having proper debt structure, because you're not going to see things financed that are "on demand." What does that mean?

Speaker #5: That means you've got to go back to day one, how we started. We self-funded with cash, and that allowed us to participate in the spot market. And now we're monetizing it, then and now as well.

Andrew Karos: We self-funded with cash, and that allowed us to participate in the spot market, and now we are monetizing it then and now as well.

Speaker #4: That's great. It's also a segue to the second question, which is financing the build-out. You did a little bit to quantify the prepayment part of it, but how do you weigh the other pieces—the prepayment versus vendor financing versus market debt versus equity?

Gil Luria: That is great. It is also a segue to the second question, which is financing the build-out. You did a little bit to quantify the prepayment part of it, but how do you weigh the other pieces, the prepayment versus vendor financing versus market debt versus equity? How do you intend to balance those financing methods for the CapEx in order to meet that first part of the type of capacity you sell?

Speaker #4: How do you intend to balance those financing methods for the CapEx in order to meet that first part of the type of capacity you sell?

Speaker #5: Sure. So when you look into the financing, you mentioned a few different parts of those arms, but let's unpack this. When we look at any debt structure, what we're going into with people, it's very important to understand what are those employing factors.

Andrew Karos: When you look into the financing, you mentioned a few different parts of those arms, but let us unpack this. When we look at any debt structure of what we are going into with people, it is very important to understand what are those employing factors. The first one, which is on starters, customer down payment. Any agreement we enter into, it is very important people understand we de-risk with customer down payment. Getting back to your first question, this ties to duration. The reason I am bringing duration into this is because when we take a customer down payment, it is very important to understand that composes of their down payment percent times the TCV, the total contract value, which is different than the CapEx of the project. What you can see is when you go out in duration, you are obviously going to have a higher contract.

Speaker #5: The first one, which is non-starters, is customer down payment. So, any agreement we enter into—it's very important people understand—we de-risk with customer down payment.

Speaker #5: And getting back to your first question, this ties to duration. And the reason I'm bringing duration into this is because when we take a customer down payment, it's very important to understand that it comprises their down payment percent times the TCV—the total contract value—which is different than the capex of the project.

Andrew Karos: Getting back to your first question, this ties to duration. The reason I am bringing duration into this is because when we take a customer down payment, it is very important to understand that composes of their down payment percent times the TCV, the total contract value, which is different than the CapEx of the project. What you can see is when you go out in duration, you are obviously going to have a higher contract.

Speaker #5: So you can see is when you go out in duration, you're obviously going to have a higher contract. In this specific example, I'll give you—say we have a $500 million contract with $250 million of capex.

Andrew Karos: In this specific example I will give you, say we have a $500 million contract with $250 million of CapEx. If a customer is putting down 15%, that is actually 30%, because the TCV is 2 to 1 versus the CapEx. The other key input part is our operating cash flow, which Erik will touch on, and I think we have said in our notes as well, is substantial contribution to this as well. Then off our equity on the balance sheet. We could get very, very granular on this, and I will to a certain degree, but I want to bring in the other point as well. Just with my derivatives and mathematical background, saying in a humble manner, I have had extensive experience working with primary banks with multiple billions, past, life, and current. What that results in is knowing what is feasible and what is not feasible.

Speaker #5: If a customer is putting down 15%, that's actually 30% because the TCV is two-to-one versus a capex. The other key input part is our operating cash flow, which Eric will touch on, and I think we've said in our notes as well.

Speaker #5: It's a substantial contribution to this as well, and then off our equity on the balance sheet. So, we could get very, very granular on this.

Speaker #5: And I will, to a certain degree, but I want to bring in the other point as well. Just with my derivatives and mathematical background, and saying this in a humble manner, I've had extensive experience working with primary banks with multiple, multiple billions.

Andrew Karos: Just with my derivatives and mathematical background, saying in a humble manner, I have had extensive experience working with primary banks with multiple billions, past, life, and current. What that results in is knowing what is feasible and what is not feasible.

Speaker #5: Past life and current. And what that results in is knowing what's feasible and what is not feasible. The reason I'm splitting those into two buckets is because, right now, you have what you refer to as investment grade and non-investment grade clients.

Andrew Karos: The reason I am splitting those into 2 buckets is because right now you have what you refer to as investment-grade and non-investment-grade clients. There is a big gap in the market right now on non-investment-grade clients on financing versus the investment grade. We feel our tactical approach, working with our finance partners, we have made tremendous ground, and that has been proven by executed deals we have done and additional ones that are in flight. The last part of my comments on this is AICP. It is a well-known, publicized program with NVIDIA and obviously NVIDIA is investment grade. At the appropriate time, we can get into more details on that. We obviously have seen different things come across our desk, and we continue to evaluate all those as needed and explore those opportunities that are presented to us as well.

Speaker #5: So there's a big gap in the market right now on non-investment grade clients on financing versus the investment grade. And we feel our tactical approach, working with our finance partners, we've made tremendous ground, and that's been proven by executed deals we've done.

Speaker #5: And additional ones that are in flight. The last part of my comments on this is AICP. It's a well-known, publicized program with NVIDIA. And obviously, NVIDIA's investment grade—at an appropriate time we can get into more details on that.

Andrew Karos: The last part of my comments on this is AICP. It is a well-known, publicized program with NVIDIA and obviously NVIDIA is investment grade. At the appropriate time, we can get into more details on that. We obviously have seen different things come across our desk, and we continue to evaluate all those as needed and explore those opportunities that are presented to us as well.

Speaker #5: And we obviously have seen different things come across our desk, and we continue to evaluate all those as needed and explore those opportunities that are presented to us as well.

Gil Luria: Well, that is great. Really appreciate it. Thank you.

Speaker #4: No, that's great. I really appreciate it. Thank you.

Speaker #2: Thank you. Our next question comes from Greg Lewis with BTIG. Your line is open.

Operator: Thank you. Our next question comes from Greg Lewis with BTIG. Your line is open.

Speaker #6: Yeah, hi. Thank you, and good morning. Thanks for taking my questions. Just real quick on the warrants—I believe the company has the right to exercise those.

Greg Lewis: Yeah. Hi, thank you, and good morning, and thanks for taking my questions. Just real quick on the warrants. I believe the company has the right to exercise those. Just as we think, I think there is around, I will let you talk, but how many warrants are left to be unexercised? Just in the event that they are not exercised by 20 August, I believe the company can call those at a penny. I just want to fully understand how the warrants will kind of work over the next week.

Gregory Lewis: Yeah. Hi, thank you, and good morning, and thanks for taking my questions. Just real quick on the warrants. I believe the company has the right to exercise those. Just as we think, I think there is around, I will let you talk, but how many warrants are left to be unexercised? Just in the event that they are not exercised by 20 August, I believe the company can call those at a penny. I just want to fully understand how the warrants will kind of work over the next week.

Speaker #6: So, just as we think—I think there's around, I mean, I'll let you talk, but how many warrants are left to be unexercised? And just, in the event that they're not exercised by August 20?

Speaker #6: I believe the company can call those at a penny. I just want to fully understand how the warrants will kind of work over the next week.

Speaker #5: Yeah, hi. This is Eric. Just to speak to that, yes, I think everything that you said is true, Greg. We have about 4.9 to 5 million warrants still outstanding.

Erik Guckel: Yeah. Hi, this is Erik. Just to speak to that. Yes, I think everything that you said is true, Greg. We have about 4.9 to 5 million warrants still outstanding, that are going to expire, I guess, for redemption on 20 August. You are correct, if they are not exercised, it is a penny buyout kind of situation.

Speaker #5: Those are going to expire, I guess, for redemption on the 20th of August. And you're correct. If they are not exercised, it's a penny buyout kind of situation.

Speaker #6: Okay, great. Great. Okay, so this is only working in your favor. And then, just on the new lease announced this morning—I realize there's a lot of moving parts to standing up the compute—but could you maybe walk us through how we should be thinking about the pace of those deployments?

Greg Lewis: Okay, great. So this is only working in your favor. Then just on the new lease announced this morning, I realize there is a lot of moving parts to standing up to compute, but could you kind of maybe walk us through how we should be thinking about the pace of those deployments?

Gregory Lewis: Okay, great. So this is only working in your favor. Then just on the new lease announced this morning, I realize there is a lot of moving parts to standing up to compute, but could you kind of maybe walk us through how we should be thinking about the pace of those deployments?

Speaker #5: Sure. And Andrew Harris here. Our deployments, as noted, on our current TCV in flight, continue to do so through end of year and into Q1, and now, obviously, a lot more will be coming online.

Andrew Karos: Sure. Andrew Karos here. Our deployments, as noted on our current TCV in flight, continue to do so through end of year into Q1, and now obviously a lot more will be coming online. So the way we should look at the recent agreement we just entered into, this is not speculative. This is not, "Gee, is the power really there? Is there a PPA agreement? Are there licensing?" Rigorous process of all check boxes have been completed, and this is already powered, and we plan to bring this into production end of Q4, which we define as standard unit distribution of our clusters that can stem over a multi-month period. So we are very excited about this partnership. I think I also want to echo out the risk management and the speculative part. Very pleased with our colo partners' experience as well, just from multiple gigawatt historical deployment the team.

Speaker #5: So the way we should look at the recent agreement we just entered into, this isn't speculative. This isn't, "Gee, is the power really there?"

Speaker #5: Is there a PPA agreement? Are the licensings? The rigorous process of all checkboxes has been completed. And this is already powered. We plan to bring this into production by the end of Q4, which we define as standard unit distribution of our clusters.

Andrew Karos: Rigorous process of all check boxes have been completed, and this is already powered, and we plan to bring this into production end of Q4, which we define as standard unit distribution of our clusters that can stem over a multi-month period. So we are very excited about this partnership. I think I also want to echo out the risk management and the speculative part.

Speaker #5: That can span over a multi-month period. So, we are very excited about this partnership. And I also want to echo the importance of risk management and address the speculative aspects.

Speaker #5: Very pleased with our colo partners' experience as well. Just from multiple gigawatt historical deployment—the team, they just recently did a multi-hundred-megawatt deployment.

Andrew Karos: Very pleased with our colo partners' experience as well, just from multiple gigawatt historical deployment the team. They just recently did multi-hundred dollar megawatt deployment, and we consider this to be an excellent strategic combination we are doing here.

Andrew Karos: They just recently did multi-hundred dollar megawatt deployment, and we consider this to be an excellent strategic combination we are doing here.

Speaker #5: And we consider this to be an excellent strategic combination we're doing here.

Speaker #6: Okay, super helpful. Thank you for taking my questions.

Greg Lewis: Okay, super helpful. Thank you for taking my questions.

Gregory Lewis: Okay, super helpful. Thank you for taking my questions.

Speaker #5: Yeah.

Andrew Karos: Yeah.

Speaker #2: Thank you. Our next question comes from George Sutton with Craig-Hallum. Your line is open.

Operator: Thank you. Our next question comes from George Sutton with Craig-Hallum. Your line is open.

Speaker #7: Thank you, and welcome to the public market. So, the $4 to $5 billion strategic procurement that you're working on with multiple OEMs—can you just walk through what that means in terms of opportunities in your pipeline, and also what you mean by the multiple OEMs?

George Sutton: Thank you, and welcome to the public market. The $4 to $5 billion strategic procurement that you are working on with multiple OEMs, can you just walk through what that means in terms of opportunities in your pipeline? Also what you mean by the multiple OEMs. We are aware of the Dell, and we are aware of the Lenovo. I am just curious if you can give us any picture there.

Speaker #7: We're aware of the Dell, and we're aware of the Lenovo. I'm just curious if you can give us any picture there.

Speaker #5: Sure. George, great to hear from you. In regards to the four to five billion, so I think as publicly announced, we have entered into four purchase agreements.

Andrew Karos: Sure. George, great to hear from you. In regards to the $4 to 5 billion, I think as publicly announced, we have entered into four purchase agreements. We have Dell at $1.44 billion, which we essentially have exhausted in a positive manner. We as a team collectively plan go forward. On the input parameters to that, you obviously need the customers, the colo, the financial engineering, and the hardware. When you get down to the $4 or 5 billion number and then the how factor, I have articulated on that a little, but you want to step back and say, "Who is that going to?" Right now, George, what I can tell you on the forward spend, we are engaged in conversations, obviously, with NVIDIA, with financial institutions, investment-grade institutions, and Frontier Labs. This customer base is anywhere from 5,000 GPUs per user to 50,000-plus.

Speaker #5: We had Dell $1.44 billion, which we have essentially exhausted—in a positive manner. And then, we as a team collectively plan to go forward.

Speaker #5: On the input parameters to that, you obviously need the customers, the colo, the financial engineering, and the hardware. So, when you get down to the $4 or $5 billion number, and then the how factor—I've articulated on that a little—but you want to step back and say, who is that going to?

Andrew Karos: When you get down to the $4 or 5 billion number and then the how factor, I have articulated on that a little, but you want to step back and say, "Who is that going to?" Right now, George, what I can tell you on the forward spend, we are engaged in conversations, obviously, with NVIDIA, with financial institutions, investment-grade institutions, and Frontier Labs. This customer base is anywhere from 5,000 GPUs per user to 50,000-plus.

Speaker #5: And right now, George, what I can tell you on the Ford spend: we are engaged in conversations, obviously, with Nvidia, with financial institutions—investment grade institutions—and frontier labs.

Speaker #5: This customer base is anywhere from 5,000 GPUs per user to 50,000-plus. So as we engage with multiple OEMs, i.e., Dell and/or Lenovo, there are other things that we will get—say, switches, transceivers, whatnot.

Andrew Karos: As we engage with multiple OEMs, i.e., Dell and/or Lenovo, there are other things that we will get, say, switches, transceivers, whatnot. We get this all under the reference architecture, George. It is very important that I am not taking out of context what I mean OEM, because what we do is we de-risk our customers when we bring them live by sticking within the NVIDIA reference architecture, which goes all the way through the architecture review board. The OEM core will still be Dell and Lenovo, just for clarity.

Speaker #5: We get this all under the reference architecture, George, and it's very important that I'm not taken out of context when I say OEM. Because what we do is we de-risk our customers when we bring them live by sticking within the Nvidia reference architecture.

Speaker #5: Which goes all the way through the Review Architecture Board. So the OEM core will still be Dell and Lenovo, just for clarity.

George Sutton: Can you help the world and understand the benefits of being Exemplar status with NVIDIA? Also, can you reference the $500 billion program they just put together and what that ultimately could mean for you?

Speaker #7: Can you help the world understand the benefits of being exemplar status with Nvidia, and also can you reference the $500 billion program they just put together and what that ultimately could mean for you?

Speaker #5: Sure. Let's start with the exemplar status. So, with the exemplar statuses at the time when we entered into that, there is one other cloud—Oracle Cloud—and Boost Run, who obtained that for the P300 status.

Andrew Karos: Sure. Let's start with the Exemplar status. What the Exemplar status is at the time when we entered into that, there's one other cloud, Oracle Cloud, and Boost Run who obtained that for the P300 status. There's been a few others that joined. Let's hit your question head on. What is that? It's a rigorous testing at P4, P8 of performance. Why is this important? It's important because when you're handing off your units, your GPUs to an end user, it's a validation process. That validation process is extremely rigorous, extremely timely, and it has to be statistically proven. This isn't just, "Hey, we passed this." This is a pounding on the network, redlining it to the fullest, and ensuring 95% performance guarantee of the capabilities of the network and the entire stack.

Speaker #5: There's been a few others that joined, but let's hit your question head-on. What is that? It's a rigorous testing—FP4, FP8—of performance.

Speaker #5: And why is this important? It's important because when you're handing off your units, your GPUs, to the end user, it's a validation process. And that validation process is extremely rigorous, extremely timely.

Andrew Karos: That validation process is extremely rigorous, extremely timely, and it has to be statistically proven. This isn't just, "Hey, we passed this." This is a pounding on the network, redlining it to the fullest, and ensuring 95% performance guarantee of the capabilities of the network and the entire stack.

Speaker #5: And it has to be statistically proven. This isn’t just, “Hey, we passed this.” This is a pounding on the network, redlining it to the fullest, and ensuring a 95% performance guarantee of the capabilities of the network. So when you look at that exemplar status, one, the difficulty of doing it.

Andrew Karos: When you look at that Exemplar status, one, the difficulty of doing it, two, the timeline. Let's get to what that actually means as a result. In respect for all counterparties' privacy, I think let's stay professional here. George, what I can tell you is the amount of conversations that I've personally been engaged in with founders of companies in large compute performance, I think the best way I can state this is there's some serious frustration about the quality of the compute that's being handed off. When we're able to bridge that gap in a statistical and performance manner, it's a sense of relief. You have risk management on the financial side, but then you have risk management on the performance and handoff side.

Speaker #5: Two, the timeline. So let's get to what that actually means as a result. In respect for all counterparties' privacy, I think let's stay professional here. But George, what I can tell you is the number of conversations that I've personally been engaged in with founders of companies, and in large compute performance—I think the best way I can state this is, there's some serious frustration about the quality of the compute that's being handed off.

Speaker #5: So when we're able to bridge that gap in a statistical and performance manner, it's a sense of relief. So you have risk management on the financial side, but then you have risk management on the performance and handoff side.

Andrew Karos: When we're able to bridge that gap in a statistical and performance manner, it's a sense of relief. You have risk management on the financial side, but then you have risk management on the performance and handoff side.

Andrew Karos: I don't have privilege to other people's core operations, but what I can tell you is Boost Run is elected to hand off the highest quality of compute. We have zero interest in understanding or engaging in what it means to have faulty hardware or a non-productive handoff that does not have a pretty price tag. Furthermore, I'm long-winded on this, but it's very important. It's not only the Exemplar status. We work with NVIS, which is NVIDIA's deployment team, and that stems into the architecture review board. Nothing goes into production at Boost Run, and I mean nothing on cluster size, unless it has passed that rigorous architecture review board, which is an actual committee at NVIDIA. Okay? Why is that important?

Speaker #5: I don't have privilege to other people's core operations, but what I can tell you is Boost Run has elected to hand off the highest quality of compute.

Speaker #5: We have zero interest in understanding or engaging in what it means to have faulty hardware or a nonproductive handoff. That does not have a pre-cheap price tag.

Speaker #5: Furthermore, I know I'm being long-winded on this, but it's very important. It's not only the exemplar status. We work with Envise, which is a video deployment team.

Andrew Karos: Furthermore, I'm long-winded on this, but it's very important. It's not only the Exemplar status. We work with NVIS, which is NVIDIA's deployment team, and that stems into the architecture review board. Nothing goes into production at Boost Run, and I mean nothing on cluster size, unless it has passed that rigorous architecture review board, which is an actual committee at NVIDIA. Okay? Why is that important?

Speaker #5: And that stems into the architecture review board. Nothing goes into production at Boost Run—and I mean nothing on cluster size—unless it has passed that rigorous architecture review board, which is an actual committee at NVIDIA.

Speaker #5: Okay. Why is that important? So if you step back and start decomposing these things, George, and you see these multi-billion-dollar handoffs, it's probably important to the primary banks and other institutions who are involved that there's fluidity and no problems.

Andrew Karos: So if you step back and start decomposing these things, George, and you see these multi-billion dollar handoffs, it is probably important to the primary banks and other institutions who are involved that there is fluidity and no problems. And then also just the reputation of NVIDIA. They want their quality. I think right now, when you get into the $500 billion consortium that has been aligned, I want to move on to that part of your question. I think it is obviously a key component in the ecosystem, and there is what they refer to as the AICP cloud partnership with NVIDIA as well.

Speaker #5: And then also just the reputation of Nvidia—they want their quality. I think right now, when you get into the $500 billion consortium, that has been aligned.

Speaker #5: I want to move on to that part of your question. I think it's obviously a key component in the ecosystem, and there's what they referred to as the AICP cloud partnership with Nvidia as well.

Speaker #5: What I can comment on right now is, if you decompose what I just said and the importance of it, I'm comfortable saying that Nvidia is extremely pleased with our performance.

Andrew Karos: What I can comment on right now is if you decompose what I just said and the importance of it, I am comfortable saying that NVIDIA is extremely pleased with our performance, and I do not think we would be engaged with some of the world's top consumers by the dozens and getting this backlog put in front of our face if we were not. So actions kind of speak louder than words. But on the $500 billion part, I want to watch what I say here. What I can say is we are seeing all traffic from all angles come across our desk, and we continue to evaluate, which I like to refer to as opportunities. And same with the AICP. We think that that program will continue to get extremely interesting, and I think we are going to have a plentiful amount of optionality currently and go forward.

Speaker #5: And I don't think we'd be engaged with some of the world's top consumers by the dozens, and getting this backlog put in front of our face, if we weren't.

Speaker #5: So, actions kind of speak louder than words. But on the $500 billion part, I want to watch what I say here. What I can say is, we are seeing all traffic from all angles come across our desk.

Andrew Karos: But on the $500 billion part, I want to watch what I say here. What I can say is we are seeing all traffic from all angles come across our desk, and we continue to evaluate, which I like to refer to as opportunities. And same with the AICP. We think that that program will continue to get extremely interesting, and I think we are going to have a plentiful amount of optionality currently and go forward.

Speaker #5: And we continue to evaluate which I like to refer to as opportunities. And same with the AICP. We think that that program will continue to get extremely interesting.

Speaker #5: And I think we're going to have a plentiful amount of optionality currently and going forward.

George Sutton: Super. Appreciate the answers.

Speaker #7: Super. Appreciate the answers.

Speaker #3: Thank you. This concludes the question and answer session. I'd like to turn the call back over to Andrew Carris for closing remarks.

Operator: Thank you. This concludes the question and answer session. I would like to turn the call back over to Andrew Karos for closing remarks.

Speaker #5: Yep. Thank you, everyone, for joining. Thank you to the day one investors and investors today. We look forward, in short order, to sharing additional information in the coming months and next quarter.

Andrew Karos: Yep. Thank you everyone for joining. Thank you from the day one investors today, and we look forward in short order sharing additional information in the coming months and next quarter.

Operator: Thank you for your participation. You may now disconnect. Everyone, have a great day.

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Q2 2026 Boost Run Inc Earnings Call

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