QumulusAI Posts $14.8M Q3 Revenue, First Positive Adjusted EBITDA

QumulusAI (NASDAQ:QMLS) reported third-quarter revenue of $14.8 million, more than double its $6.7 million second-quarter result and up 376% from a year earlier, as newly energized computing capacity began billing customers. The quarter also marked the company's first positive adjusted EBITDA, at $3.7 million or 25% of revenue, against a $0.8 million adjusted EBITDA loss in the prior quarter.

CEO Mike Maniscalco said customer demand for AI computing remains strong, but access to data center capacity is limiting the pace of expansion. Much of the capacity energized during the quarter billed for only part of the period, CFO Scott Krosnowski noted — a detail practitioners should read as evidence the reported figure understates the current run rate.

What Drives the Revenue Mix Shift?

Compute accounted for 96% of revenue, compared with 47% a year earlier. That shift confirms the transition from the company's legacy operations toward GPU-based AI infrastructure.

The bottom line tells a more layered story. QumulusAI recorded an operating loss of $41.6 million and a net loss of $14.4 million, or $0.43 per share. The operating loss included a $26.4 million non-cash charge for shares issued as a professional services fee tied to the public listing, while the net loss reflected $32.3 million of non-cash gains from fair-value changes in convertible notes, a related option and warrants, Krosnowski said.

How Large Is the Contract Backlog?

Remaining performance obligations (the contracted revenue not yet recognized) from direct customer compute contracts reached $515 million at quarter-end, up from $173.1 million at June 30. Krosnowski said $29.1 million was scheduled for recognition in the fourth quarter, with the remaining $486 million scheduled from 2027 through 2030. Maniscalco said the schedule points to another sequential doubling of quarterly revenue.

New signings reinforce that trajectory. QumulusAI signed $352 million of new direct contracts in the quarter, bringing 2026 signings to $529 million. Its latest three-year contracts draw roughly $19 million to $21 million in annualized revenue per megawatt, up from the $18 million to $20 million range reported in August.

What Capacity Is Coming Online?

The company ended the quarter with 8 megawatts active and billing across five colocation sites, plus another 5.45 megawatts secured but not yet billing:

• 3.75 megawatts in metro Atlanta, expected ready for service in the second quarter of 2027;
• 0.5 megawatts in Columbia, South Carolina, expected in December;
• 1.2 megawatts in Denver, expected in the first quarter of 2027.

During the question-and-answer session, Krosnowski said the Denver capacity was being marketed and had not yet been sold. Maniscalco said all newly secured capacity except Columbia was being marketed; the Columbia capacity was already sold and announced.

Beyond that, QumulusAI holds a right of first offer on another 7 megawatts at an Atlanta site, where the owner's planned expansion is earmarked for 2027, though timing rests at the owner's discretion. The company also has a long-term lease at an Oklahoma site with 10 megawatts of active power running its legacy mining operation and up to 7 megawatts of additional grid power available.

How Is the Expansion Funded?

Maniscalco said QumulusAI uses customer deposits and equipment financing tied to individual contracts to fund deployments. Major multiyear contracts typically require prepayments of 15% to 20% of total contract value, Krosnowski said — roughly comparable to a down payment on the buildout itself.

The cash mechanics were substantial. Third-quarter operating cash flow was positive $32 million. Capital expenditures ran approximately $100 million, primarily for GPU servers, while the company added approximately $94 million of equipment and facilities under new leases. Debt and finance lease obligations totaled $248 million at September 30, and cash and restricted cash totaled $31.1 million, including $9.2 million restricted under loan agreements.

On the two B300 agreements signed in September, Krosnowski said one order was fully paid for and the other carried a 20% prepayment, with the balance in process. Maniscalco said the ready-for-service date on the latter had slipped slightly, with final financing aligned to the timing of data center capacity coming online.

What Does the Outlook Signal for Supply?

QumulusAI reaffirmed year-end targets of 18 megawatts of contracted capacity and $300 million in forward annual recurring revenue. Krosnowski said 13.45 megawatts was active or secured under agreements, with the balance in late-stage negotiations; about $209 million of forward ARR sat under signed customer contracts.

Maniscalco said he had not seen a major demand shift during the past month and that existing customers appeared more urgent about securing capacity. He also flagged a supply-side change: some smaller colocation operators have become less willing to sell to customers without investment-grade credit, prompting QumulusAI to consider higher upfront prepayments and credit instruments as potential ways to secure supply. For finance teams watching the GPU infrastructure market, that credit tightening among smaller operators is the most consequential shift in the quarter.