QumulusAI (NASDAQ: QMLS) revenue jumps 376% and posts first positive Adjusted EBITDA

What happened

QumulusAI, Inc. (NASDAQ: QMLS) reported third-quarter revenue of $14.8 million, up 376% from $3.1 million a year earlier, and its first positive Adjusted EBITDA. The company calls itself a neocloud infrastructure provider built for AI computing.

It says revenue doubled from the prior quarter for the second straight quarter.

Adjusted EBITDA, a non-GAAP measure, was $3.7 million. A year earlier it was a loss of $0.6 million. The company says growth in compute revenue drove the swing.

Compute power revenue reached $14.1 million, about 96% of the total. A year earlier it was $1.4 million, about 47%. Mining hosting revenue fell to $0.37 million from $1.45 million.

Key numbers

Metric Latest Change Source
Third-quarter revenue $14.8 million from $3.1 million, +376% SEC 8-K, Exhibit 99.1
Remaining performance obligations (change is versus end of Q2: $173.1 million) $515.0 million +197.5% Calculated from SEC 8-K
Adjusted EBITDA (non-GAAP) $3.7 million from -$0.6 million SEC 8-K, Exhibit 99.1
Operating loss $41.6 million from $2.8 million SEC 8-K, Exhibit 99.1
Net loss $14.4 million from $9.5 million SEC 8-K, Exhibit 99.1
Cumulative signed customer contract value $528.7 million SEC 8-K, Exhibit 99.1

Read more: QumulusAI (QMLS) company research

Backlog and capacity

Remaining performance obligations rose to $515.0 million from $173.1 million at the end of the second quarter. By OptimistFi's calculation, that is a gain of $341.9 million, or 197.5%, in one quarter.

Cumulative signed customer contract value reached $528.7 million. New business included $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 put its $71.9 million, three-year Blackwell agreement fully into production. Every GPU under it billed within three months of signing.

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 for service in December 2026.

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Why the loss is so large

Operating loss widened to $41.6 million from $2.8 million a year earlier. The company says depreciation and amortization rose $13.4 million as it expanded HPC infrastructure. It also cites higher general and administrative costs and more staff.

Those administrative costs include $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 a year earlier. This quarter includes $32.3 million of non-cash gains from changes in the fair value of the convertible note, the related option and the warrant liability. Those gains are not operating improvement. The prior-year quarter included a $4.8 million non-cash loss on the warrant liability.

Balance sheet and cash

The balance sheet changed sharply this year. Total liabilities reached $368.8 million at Sept. 30, up from a much smaller base at Dec. 31, 2025. Total shareholders' equity fell to $25.3 million from $65.3 million.

Cash was $21.9 million, up from $11.7 million at year-end. 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 brought in $86.8 million.

Why it matters

The quarter sets a baseline for judging QumulusAI. CEO Michael Maniscalco said the company sells capacity before it energizes it and brings it online in months. He said much of the compute that came online during the quarter and into the fourth had not yet billed for a full period.

The backlog is far larger than one quarter's revenue. So the question is how fast contracted capacity goes live and bills.

The caveats sit in the filing. Adjusted EBITDA leaves out depreciation, net interest, stock-based compensation, the listing-related share issuance and fair-value changes on financial instruments. It also leaves out interest and amortization on finance leases. The company expects payments on those of approximately $13.0 million in the rest of 2026 and approximately $53.3 million in 2027.

The company's own risk list names reliance on a few large customers, its capital needs and access to financing, and its history of net losses.

What's next

QumulusAI will host a conference call and webcast at 5:00 p.m. Eastern on Nov. 10 and says it will give forward-looking guidance there. Guidance on revenue from compute brought online during and after the third quarter would show how quickly the backlog turns into billing.

Two sites have dated targets: Columbia, South Carolina in December 2026 and Denver in Q1. A slip at either would weaken the ramp story. The next quarterly report will show whether compute revenue keeps climbing from the third-quarter level.

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