QumulusAI Posts 376% Revenue Jump and First Positive Adjusted EBITDA

QumulusAI, Inc. (NASDAQ: QMLS) reported third-quarter revenue of $14.8 million, up 376% from $3.1 million a year earlier, and posted its first positive Adjusted EBITDA of $3.7 million. The self-described neocloud infrastructure provider built for AI computing also doubled revenue from the prior quarter for the second consecutive quarter.

Where is the growth coming from?

Compute power revenue reached $14.1 million, roughly 96% of total revenue, up from $1.4 million and a 47% share a year ago. Mining hosting revenue fell to $0.37 million from $1.45 million over the same period. The company attributes the Adjusted EBITDA swing — from a $0.6 million loss a year earlier — to growth in compute revenue.

Remaining performance obligations (contracted revenue not yet recognized) rose to $515.0 million from $173.1 million at the end of the second quarter, a gain of $341.9 million, or 197.5%, in one quarter. Cumulative signed customer contract value reached $528.7 million, including $240.9 million of three-year take-or-pay agreements covering more than 2,000 NVIDIA Blackwell B300 GPUs across two dedicated clusters.

The company also placed its $71.9 million, three-year Blackwell agreement fully into production. Every GPU under that contract billed within three months of signing.

Why did the operating loss widen?

Operating loss expanded to $41.6 million from $2.8 million a year earlier. Depreciation and amortization rose $13.4 million as the company expanded its high-performance computing infrastructure. General and administrative costs also climbed, including $26.4 million for common stock issued for professional services tied to the company's direct listing.

Net loss was $14.4 million, up from $9.5 million. This quarter's figure includes $32.3 million of non-cash gains from fair-value changes on a convertible note, a related option and a warrant liability — gains that do not reflect operating improvement. The prior-year quarter carried a $4.8 million non-cash loss on the warrant liability.

What does the balance sheet show?

Total liabilities reached $368.8 million at September 30. Total shareholders' equity fell to $25.3 million from $65.3 million at year-end. Cash rose to $21.9 million from $11.7 million.

Over nine months, the company spent $137.0 million on property and equipment and took in $54.3 million from operations, which included a $79.0 million increase in deferred revenue. Financing contributed $86.8 million.

Active capacity has reached 8 MW. The company contracted 1.2 MW in Denver, ready for service in Q1, and 0.5 MW in Columbia, South Carolina, ready in December 2026.

What should CFOs watch next?

CEO Michael Maniscalco said the company sells capacity before it energizes it and brings it online in months. He noted that much of the compute brought online during the quarter and into the fourth had not yet billed for a full period. The backlog now dwarfs one quarter's revenue, so conversion speed — how fast contracted capacity goes live and bills — is the metric that matters.

The caveats sit in the filing. Adjusted EBITDA excludes depreciation, net interest, stock-based compensation, the listing-related share issuance, fair-value changes on financial instruments, and interest and amortization on finance leases. The company expects finance-lease payments of approximately $13.0 million in the rest of 2026 and approximately $53.3 million in 2027. Its own risk list names reliance on a few large customers, capital needs and access to financing, and a history of net losses.

QumulusAI will host a conference call and webcast at 5:00 p.m. Eastern on November 10, where management says it will provide forward-looking guidance. Dated targets at Columbia (December 2026) and Denver (Q1) will test the ramp story; a slip at either would weaken it.