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

WhiteFiber (NASDAQ:WYFI) posted its earnings results on Wednesday. The company reported ($0.39) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.40) by $0.01, FiscalAI reports. The business had revenue of $28.84 million for the quarter. WhiteFiber had a negative return on equity of 10.10% and a negative net margin of 46.87%.

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

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

WhiteFiber Stock Performance

Shares of NASDAQ:WYFI traded up $0.90 during trading on Friday, hitting $29.11. 364,354 shares of the company traded hands, compared to its average volume of 1,570,984. The stock has a market capitalization of $1.12 billion and a price-to-earnings ratio of -15.80. The business’s fifty day moving average is $30.15 and its 200-day moving average is $22.89. WhiteFiber has a one year low of $10.51 and a one year high of $46.87. The company has a quick ratio of 2.77, a current ratio of 2.77 and a debt-to-equity ratio of 0.63.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on WYFI shares. BTIG Research reaffirmed a “buy” rating and set a $50.00 price objective on shares of WhiteFiber in a report on Wednesday. Needham & Company LLC reissued a “buy” rating on shares of WhiteFiber in a report on Thursday. B. Riley Financial reissued a “buy” rating on shares of WhiteFiber in a report on Monday, May 18th. Weiss Ratings lowered WhiteFiber from a “sell (d)” rating to a “sell (d-)” rating in a research note on Wednesday. Finally, Barclays raised their price objective on WhiteFiber from $29.00 to $32.00 and gave the company an “equal weight” rating in a report on Friday. Eleven analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $35.83.

Institutional Investors Weigh In On WhiteFiber

Hedge funds and other institutional investors have recently modified their holdings of the stock. Situational Awareness LP acquired a new position in WhiteFiber during the 4th quarter worth about $27,770,000. Clearfield Capital Management LP raised its position in shares of WhiteFiber by 426.6% in the fourth quarter. Clearfield Capital Management LP now owns 1,313,659 shares of the company’s stock valued at $20,756,000 after buying an additional 1,064,177 shares in the last quarter. Marshall Wace LLP acquired a new stake in WhiteFiber in the third quarter valued at about $9,105,000. Wasatch Advisors LP bought a new position in shares of WhiteFiber during the third quarter valued at $8,382,000. Finally, CenterBook Partners LP bought a new stake in shares of WhiteFiber during the 4th quarter valued at about $3,873,000.

WhiteFiber Company Profile

We believe we are a leading provider of artificial intelligence (“AI”) infrastructure solutions. We own high-performance computing (“HPC”) data centers and provide cloud-based HPC graphics processing units (“GPU”) services, which we term cloud services, for customers such as AI application and machine learning (“ML”) developers (the “HPC Business”). Our Tier-3 data centers provide hosting and colocation services. Our cloud services support generative AI workstreams, especially training and inference.