Digi Power X Q3 2026: AI Revenue Hits 46% of Sales, But Profit Leans on Crypto Gain

Digi Power X reported Q3 2026 earnings per share of $0.01, beating expectations for a loss of $0.14 per share. The headline profit comes with an important qualifier: GAAP net income of $1.0 million was materially supported by a crypto revaluation gain and a warrant fair-value gain, while stock compensation and a foreign-exchange loss worked against it. Strip those items away and the underlying operating picture looks meaningfully different.

The revenue mix tells the more consequential story. AI colocation and GPU rental revenue reached $5.66 million, or roughly 46% of total sales, compared with nothing in the same quarter a year ago. GPU rental revenue through the NeoCloudz platform rose 127% sequentially to $2.46 million, and AI colocation contributed $3.2 million. Legacy Bitcoin-related activities, which accounted for about 63% of revenue a year ago, fell to roughly 27%.

Total revenue of $12.25 million was up about 50% year over year and 85% over the prior quarter, but it missed the consensus estimate of $14.64 million by 16%. The gap matters because the company is in the middle of a capital-intensive build-out and investor expectations had already baked in a faster ramp. Gross profit was negative $2.41 million for the quarter, underscoring that the business is not yet self-funding on an operating basis.

The next concrete catalyst to watch is the Columbiana, Alabama campus, where Phase 1 billing under a ten-year agreement with Cerebras is expected to begin in January 2027, with tenant access and commissioning targeted for December 15, 2026. Management is guiding toward an annualized revenue run-rate of $250 to $300 million by the end of Q3 2027, with approximately $143 million of that run-rate supported by current operations and the Columbiana agreement including a conditional Phase 2. A $200 million project-level credit facility syndicated by Goldman Sachs is expected to close in Q4 2026, though management noted it might not close on anticipated terms or at all.

The company ended the quarter with approximately $120 million in cash, cash equivalents, and digital currencies and carried no outstanding borrowings, providing a runway for near-term capital deployment. CEO Michel Amar stated: "Revenue increased 85% over the previous quarter, and AI now accounts for nearly half of our business, all before the expected start of Columbiana colocation billing in January 2027." Planned 2027 capital expenditure stands at approximately $350 million, primarily targeting roughly 10 megawatts of AI inference capacity and Columbiana Phase 2, with funding expected through customer deposits, prepayments, and debt.