WhiteFiber, Inc. (NASDAQ: WYFI) reported fourth‑quarter and full‑year 2025 results on March 26, 2026, with Q4 revenue of $23.56 million and a loss per share of $0.67. Full‑year revenue totaled $79.16 million and the company posted a net loss of $1.52 million, up from a $1.04 million loss a year earlier.
The quarter’s revenue fell short of some analyst estimates but beat others, reflecting a mix of strong demand in cloud services and weaker performance in legacy segments. The earnings miss was driven largely by a sharp rise in operating expenses, including a significant increase in general and administrative costs and share‑based compensation, as the company continues to invest heavily in its NC‑1 and MTL‑3 data‑center projects.
Operating expenses rose as WhiteFiber accelerated capital spending to expand AI‑optimized capacity. While the company did not disclose the exact dollar increase in G&A or share‑based compensation, the expense growth is consistent with the company’s strategy to build out new facilities and support the ramp‑up of its cloud services portfolio.
Cloud services revenue grew 48% year‑over‑year, and the company’s gross margin improved to 61% from 52% in the prior year, indicating that higher‑margin AI‑centric contracts are offsetting some of the cost pressure. The margin expansion reflects pricing power in the high‑performance compute market and the scaling of the company’s core services.
WhiteFiber’s management highlighted that the NC‑1 and MTL‑3 projects are still cash‑burning and that the company has not issued new guidance for the next quarter. The lack of forward guidance has heightened investor concern about the company’s near‑term liquidity and the ability to fund further expansion without additional financing.
Customer concentration risk remains a material factor, as the company’s “Initial Customer” accounts for 70.7% of 2025 revenue and has paused services pending renegotiation. The pause introduces a significant revenue and collection risk that could impact future earnings if not resolved.
The company secured a 10‑year colocation agreement with Nscale for 40 MW at NC‑1, representing $865 million in contracted revenue. The deal provides a long‑term revenue anchor and supports the company’s debt‑funding strategy, but the company is still in the early stages of billing for the first phase.
CEO Sam Tabar described 2025 as a “transformational year,” noting the company’s IPO, infrastructure expansion, and the launch of new AI capacity. He also acknowledged the need to address profitability challenges while continuing to invest in growth opportunities.
Investors reacted with concern to the large earnings miss, the absence of guidance, and the ongoing cash burn. Despite these headwinds, the company’s strong cloud services growth and the Nscale contract suggest a solid long‑term demand foundation for AI‑optimized data‑center services.
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