{"success":true,"data":{"pressRelease":{"id":"119821","rtpr_id":"nGNXbNjHGX","ticker":"AGPU","exchange":"NASDAQ","all_tickers":["AGPU"],"title":"Axe Compute Inc. Reports Second Quarter 2026 Financial Results and Provides Business Update","author":"Globe Newswire","published_at":"2026-08-14T21:00:00.310Z","article_body":"* Revenue Grew More Than 90x Sequentially from Q1 2026 in the First Full\nQuarter of Compute Operations \n* More Than $2.8 Billion in New Contracts Signed, Bringing 2026 Signed\nContracted Value to More Than $3 Billion and Expected Annualized Run Rate to\nMore Than $696M upon Full Deployment\nPITTSBURGH, Aug. 14, 2026 (GLOBE NEWSWIRE) -- Axe Compute Inc. (NASDAQ: AGPU),\na neocloud AI infrastructure platform delivering dedicated enterprise GPU\ncompute capacity at global scale, today reported financial results for the\nsecond quarter ended June 30, 2026.\n\n\"In less than eight months, we have gone from our first revenue-generating\ncompute contract to more than $3 billion in signed contract value. We continue\nto be confident that we can deliver an additional $2 billion in signed\ncontracts before the end of the year,” said Christopher Miglino, Chief\nExecutive Officer of Axe Compute “As these contracts go live, they provide\nmulti-year recurring revenue that strengthens our balance sheet quarter after\nquarter. Our focus for the second half is delivery, and winning the next\ncontracts as we do it,\" added Miglino.\n\nSECOND QUARTER 2026 AND RECENT DEVELOPMENTS AT A GLANCE\n* Revenue of $3.2 million, the first full quarter of revenue from compute\nservices, entirely contributed by the Axe Compute Access service delivery\nmodel; Axe Compute Build contract revenue is not yet recognized and begins at\ngo-live.\n* Net loss of $17.2 million, driven by a non-cash $13.1 million loss on\ndigital assets, primarily reflecting changes in digital asset holdings and\nrelated receivables.\n* Adjusted EBITDA(1) of approximately ($4.9 million), with approximately ($0.9\nmillion) attributable to the legacy Drug Discovery Services (Helomics)\nsegment.\n* Cash of $21.9 million at quarter-end, up from $6.9 million at March 31,\n2026.\n* Customer prepayments of $60.8 million and net cash provided by operating\nactivities of $17.4 million for the first half of 2026.\n* More than $3 billion in 2026 total contract value (“TCV”)(2), including\nmore than $2.8 billion in contracts signed in July under the Axe Compute Build\nmodel that were converted from the second quarter pipeline.\nQ2 2026 AND RECENT BUSINESS HIGHLIGHTS\n\nMore Than $2.8 Billion in New Contracts Signed (July 2026): Subsequent to\nquarter-end, the Company secured three new customer contracts across the\nUnited States and Europe with a TCV of more than $2.8 billion, all under the\nAxe Compute Build model. Together with the $260 million contract signed in\nApril, the Company's 2026 TCV now exceeds $3 billion, surpassing the $1\nbillion goal for new customer agreements announced in May 2026. The\nCompany’s annualized run rate (“ARR”)(3) is expected to reach more than\n$696M upon full deployment.\n\n$260 Million Cluster In Build, Targeted for Q3 2026 Go-Live: The dedicated\ncluster of 2,304 NVIDIA B300 GPUs under the Company's 36-month take-or-pay\ncontract announced in April progressed through build during the quarter.\nDeployment remains targeted for Q3 2026. Once live, the contract represents\napproximately $21 million per quarter in recognizable revenue over the\n36-month service term.\n\nContract Liabilities Grew to $60.8 Million: Contract liabilities, representing\ncustomer prepayments that are generally non-cancellable and non-refundable and\nare received ahead of revenue recognition, grew from $0.8 million at March 31,\n2026 to $60.8 million at June 30, 2026. Customer prepayments fund\ninfrastructure ahead of deployment, a central feature of the Company's\ncapital-efficient operating model.\n\nSECOND QUARTER 2026 FINANCIAL HIGHLIGHTS\n\nRevenue: $3.2 million in Q2 2026, up from $35 thousand in Q1 2026 and compared\nto $3 thousand in Q2 2025, before the Company began providing compute\nservices. Compute Services contributed $3.2 million, the segment's first full\nquarter of recognized revenue, reflecting contracts delivered through the Axe\nCompute Access model. Revenue from the Company's Build contracts is not yet\nreflected in reported results; recognition begins at go-live of the contracted\nclusters. The current period's margin profile reflects the Access model only\nand does not reflect the economics of the Build business, and the revenue mix\nand economics of the Company are expected to change materially as Build\ndeployments come online.\n\nNet Loss: $17.2 million for Q2 2026, or $0.87 per share. The reported net loss\nwas driven primarily by $13.1 million in losses on digital assets in the\nquarter ($17.4 million year to date). These represent primarily non-cash\nfair-value changes on the Company's ATH digital asset holdings and related\nreceivable and derivative positions, which under US GAAP are measured at each\nreporting date. Management believes the reported net loss does not reflect the\noperating performance or cash usage of the business.\n\nAdjusted EBITDA: ($4.9 million), excluding $11.8 million of unrealized losses\non digital assets, $0.6 million of stock-based compensation, and less than\n$0.1 million of combined depreciation, amortization, and net interest income;\napproximately ($0.9 million) was attributable to the legacy Drug Discovery\nServices segment.\n\nCash and Digital Assets: Cash and cash equivalents grew to $21.9 million at\nJune 30, 2026, up from $10.8 million at December 31, 2025 and $6.9 million at\nMarch 31, 2026. The Company also held $11.3 million in digital assets,\nprimarily Aethir (“ATH”), and $10.3 million in digital asset receivables\nat June 30, 2026 for a total of $21.6 in digital assets.\n\nPositive Operating Cash Flow: Net cash provided by operating activities of\ncontinuing operations was $17.4 million for the six months ended June 30,\n2026, compared to net cash used of $4.3 million in the prior-year period,\ndriven primarily by customer prepayments under Compute Services contracts.\n\nOUTLOOK\n\nThe Company does not provide formal financial guidance. The following\nforward-looking context is provided to assist investors in understanding\nmanagement's operational priorities, and is subject to the risks and\nuncertainties described under \"Cautionary Statement Regarding Forward-Looking\nStatements\" below.\n\nManagement's operational priorities for the balance of 2026 include: (i)\ncompleting the build and achieving go-live of the $260 million dedicated GPU\ncluster, targeted for Q3 2026, and commencing recognition of approximately $21\nmillion per quarter in revenue under that contract upon deployment; (ii)\nexecuting against the more than $2.8 billion in contracts signed in July 2026,\nincluding facility readiness, equipment procurement, and deployment planning\nacross the United States and Europe; (iii) continuing to expand the enterprise\nsales team and convert the Company's pipeline; and (iv) completing the\nstrategic alternatives process for the legacy Drug Discovery Services\nbusiness.\n\nCONFERENCE CALL AND WEBCAST\n\nManagement will host a conference call and webcast to discuss the Company's\nsecond quarter 2026 results on Monday, August 17, 2026 at 8:30 a.m. Eastern\nTime. Participants may join by dialing +1 720 707 2699 (Meeting ID: 867 5256\n5005, Passcode: 279379) or via live webcast at\nhttps://bit.ly/AxeComputeQ22026. A replay of the webcast will be available on\nthe Company's investor relations website at investors.axecompute.com following\nthe call.\n\nABOUT AXE COMPUTE\n\nAxe Compute Inc. (NASDAQ: AGPU) is a neocloud AI infrastructure platform built\non a fundamental premise: AI innovation should not be constrained by hardware\nchoice or availability. The company provides enterprises and AI innovators\nwith flexibility across hardware, geography, and deployment models through two\ncore offerings: Axe Compute Access, delivering a wide range of the latest\nhigh-performance GPU infrastructure across global locations, and Axe Compute\nBuild, enabling the design, deployment, ownership, and operation of\nlarge-scale, dedicated AI infrastructure worldwide. All solutions are\nsupported by enterprise-grade SLAs and operational expertise. Axe Compute is\nheadquartered in Pittsburgh, Pennsylvania. For more information, visit\naxecompute.com.\n\nINVESTOR CONTACT\n\nErin McMahon, CMO and Head of Investor Relations\n\nir@axecompute.com | investors.axecompute.com\n\nMEDIA CONTACT\n\nErin McMahon, CMO and Head of Investor Relations\n\nerin@axecompute.com\n\nCAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS\n\nThis press release contains \"forward-looking statements\" within the meaning of\nthe Private Securities Litigation Reform Act of 1995, as well as Section 27A\nof the Securities Act of 1933, as amended, and Section 21E of the Securities\nExchange Act of 1934, as amended. Forward-looking statements include, but are\nnot limited to, statements regarding the deployment timeline and revenue\nexpectations for the $260 million enterprise contract, the execution and\ndeployment of the contracts signed in July 2026, the Company's commercial\nstrategy and pipeline, the expected evolution of the Company's revenue mix and\neconomics as Build contracts come online, the expected annualized run rate in\nfuture periods, the strategic alternatives process for the Drug Discovery\nServices segment, the Company's liquidity and capital resources, and the\nmarket opportunity for GPU compute infrastructure. These statements are based\non management's current expectations and beliefs as of the date of this\nrelease and are subject to significant risks and uncertainties that could\ncause actual results to differ materially, including but not limited to: risks\nrelated to the execution, enforceability, and customer performance under the\nCompany's contracts, including the $260 million contract and the contracts\nsigned in July 2026; hardware supply chain constraints and facility readiness;\nthe highly volatile and unpredictable price of ATH and digital assets\ngenerally; the Company's ability to generate and grow Compute Services\nrevenue; risks associated with the Aethir network and decentralized physical\ninfrastructure; the Company's ability to maintain Nasdaq listing compliance;\nrisks related to the strategic alternatives process for the Drug Discovery\nServices business; and those risks and uncertainties described in the\nCompany's Annual Report on Form 10-K for the fiscal year ended December 31,\n2025, filed with the SEC on March 31, 2026, and in the Company's Quarterly\nReport on Form 10-Q for the quarter ended June 30, 2026. The Company\nundertakes no obligation to update or revise any forward-looking statements,\nexcept as required by applicable law.\n\nNON-GAAP FINANCIAL MEASURES\n\nThis press release includes “Adjusted EBITDA,” which is a non-GAAP\nfinancial measure. The Company defines Adjusted EBITDA as net income (loss)\nadjusted to exclude: (i) interest expense (income), net; (ii) income tax\nexpense (benefit); (iii) depreciation and amortization; (iv) stock-based\ncompensation expense; and (v) unrealized (gains) losses on digital assets.\nUnrealized (gains) losses on digital assets represent mark-to-market, fair\nvalue adjustments related to digital assets and digital asset receivables, and\ndo not include realized gains and losses on digital assets, including from ATH\nused to pay for compute the Company then sells to customers. Adjusted EBITDA\nis not a substitute for net income (loss) or any other measure of financial\nperformance prepared in accordance with U.S. GAAP and may not be comparable to\nsimilarly titled measures used by other companies. Management believes\nAdjusted EBITDA is useful to investors because it provides a supplemental\nmeasure of the Company’s core operating performance by excluding the effects\nof capital structure decisions (such as interest expense), non-cash charges\n(such as depreciation, amortization and stock-based compensation), unrealized\nfair value adjustments (such as changes in volatile market price of digital\nasset holdings) and tax impacts that can vary significantly between periods\nand across companies. Management uses Adjusted EBITDA to evaluate the\nCompany’s performance, compare performance across periods, and assist in the\nallocation of resources. Investors are cautioned that Adjusted EBITDA has\nlimitations as an analytical tool and should not be considered in isolation or\nas a substitute for analysis of the Company’s results as reported under U.S.\nGAAP.\n\nA reconciliation of Adjusted EBITDA to the most directly comparable U.S. GAAP\nfinancial measure is included in the tables accompanying this press release.\nTo the extent the Company provides forward-looking Adjusted EBITDA guidance in\nconnection with this release or the related earnings call, a reconciliation of\nsuch forward-looking non-GAAP measure to the most directly comparable U.S.\nGAAP measure may not be available without unreasonable effort due to the\ninherent difficulty in forecasting and quantifying certain amounts, including\nbut not limited to fair value adjustments on digital asset holdings,\nstock-based compensation expense, and other non-cash or non-recurring items,\nthe timing and magnitude of which may be significant.\n\nFINANCIAL STATEMENTS\nSUMMARY CONDENSED CONSOLIDATED BALANCE SHEETS\n(Unaudited)\n\n                                                   June 30, 2026  December 31, 2025  \n ASSETS                                                                              \n Cash and cash equivalents                         $21,905,767    $10,790,850        \n Accounts receivable                               3,321,426      32,120             \n Compute prepayments (current)                     11,148,981     —                  \n Digital assets                                    11,268,342     24,439,598         \n Digital asset receivable (current)                7,547,221      7,226,475          \n Other current assets                              873,423        280,904            \n Total current assets                              56,065,160     42,769,947         \n Compute prepayments, net of current portion       22,946,761     —                  \n Digital asset receivable, net of current portion  2,745,004      8,258,681          \n Property and equipment, net                       17,291,873     223,128            \n Other non-current assets                          1,327,158      1,636,590          \n Total assets                                      $100,375,956   $52,888,346        \n LIABILITIES & STOCKHOLDERS' EQUITY                                                  \n Accounts payable                                  $2,494,038     $1,840,608         \n Contract liabilities (current)                    33,645,987     144,076            \n Other current liabilities                         2,546,883      2,282,212          \n Total current liabilities                         38,686,908     4,266,896          \n Contract liabilities, net of current portion      27,108,685     —                  \n Other long-term liabilities                       535,168        904,495            \n Total liabilities                                 66,330,761     5,171,391          \n Total stockholders' equity                        34,045,195     47,716,955         \n Total liabilities and stockholders' equity        $100,375,956   $52,888,346        \n\nSUMMARY STATEMENTS OF NET LOSS\n(Unaudited)\n\n                                        For the Three Months Ended      For the Six Months Ended      \n                                        June 30, 2026   June 30, 2025   June 30, 2026  June 30, 2025  \n Revenue                                $3,214,992      $2,682          $3,250,303     $112,992       \n Gains (losses) on digital assets       $(13,125,352)   —               $(17,421,620)  —              \n Total operating costs and expenses     $(7,417,650)    $(2,662,550)    $(10,885,374)  $(5,059,907)   \n Total operating loss                   $(17,328,010)   $(2,659,868)    $(25,056,691)  $(4,946,915)   \n Other income, net                      $122,128        $680,973        $141,866       $682,604       \n Net loss                               $(17,205,882)   $(2,070,462)    $(24,914,825)  $(4,513,335)   \n Net loss per share, basic and diluted  $(0.87)         $(0.23)         $(1.45)        $(0.55)        \n Weighted avg. shares outstanding       19,685,811      9,108,984       17,167,696     8,136,008      \n\nRECONCILIATION OF NET LOSS TO ADJUSTED EBITDA\n(Unaudited)\n\n                                              For the Three Months Ended      \n                                              June 30, 2026   June 30, 2025   \n Net loss from continuing operations          $(17,205,882)   $(1,978,896)    \n Net interest (income) expense                (74,928)        789             \n Income tax (benefit) expense                 -               -               \n Depreciation and amortization                26,234          32,611          \n Stock-based compensation expense             571,584         -               \n Unrealized (gains) losses on digital assets  11,798,221      -               \n Adjusted EBITDA                              $ (4,884,771 )  $ (1,945,496 )  \n\nSUMMARY STATEMENTS OF CASH FLOWS\n(Unaudited)\n\n                                                                 For the Six Months Ended      \n                                                                 June 30, 2026  June 30, 2025  \n Net cash provided by (used in) continuing operating activities  $17,370,239    $(4,280,632)   \n Net cash (used in) continuing investing activities              (17,121,106)   -              \n Net cash provided by continuing financing activities            10,865,784     3,226,593      \n Net cash provided by discontinued operations                    -              825,444        \n Net increase (decrease) in cash and cash equivalents            $ 11,114,917   $ (228,595 )   \n\n\n\n______________________________\n(1) Adjusted EBITDA is a non-GAAP financial measure. See “Non-GAAP Financial\nMeasures” and reconciliation tables.\n(2) Total contract value is an operating metric representing the aggregate\nestimated contractual spend under signed customer contracts, and may not\nrepresent revenue recognized in any particular period as separately determined\nin accordance with US GAAP.\n(3) Annualized run rate is an operating metric representing annualized monthly\nrevenue upon full deployment of signed contracts. Annualized run rate is an\nestimate and does not represent revenue recognized in a particular period as\nseparately determined in accordance with US GAAP.\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/0722059f-4d31-435e-974f-ff669a2cb2e4)\n\n\n\nGlobeNewswire, Inc. 2026","article_body_html":"","raw_payload":{"data":{"id":"nGNXbNjHGX","title":"Axe Compute Inc. Reports Second Quarter 2026 Financial Results and Provides Business Update","author":"Globe Newswire","ticker":"AGPU","created":"2026-08-14T21:00:00.310Z","tickers":["AGPU"],"exchange":"NASDAQ","article_body":"* Revenue Grew More Than 90x Sequentially from Q1 2026 in the First Full\nQuarter of Compute Operations \n* More Than $2.8 Billion in New Contracts Signed, Bringing 2026 Signed\nContracted Value to More Than $3 Billion and Expected Annualized Run Rate to\nMore Than $696M upon Full Deployment\nPITTSBURGH, Aug. 14, 2026 (GLOBE NEWSWIRE) -- Axe Compute Inc. (NASDAQ: AGPU),\na neocloud AI infrastructure platform delivering dedicated enterprise GPU\ncompute capacity at global scale, today reported financial results for the\nsecond quarter ended June 30, 2026.\n\n\"In less than eight months, we have gone from our first revenue-generating\ncompute contract to more than $3 billion in signed contract value. We continue\nto be confident that we can deliver an additional $2 billion in signed\ncontracts before the end of the year,” said Christopher Miglino, Chief\nExecutive Officer of Axe Compute “As these contracts go live, they provide\nmulti-year recurring revenue that strengthens our balance sheet quarter after\nquarter. Our focus for the second half is delivery, and winning the next\ncontracts as we do it,\" added Miglino.\n\nSECOND QUARTER 2026 AND RECENT DEVELOPMENTS AT A GLANCE\n* Revenue of $3.2 million, the first full quarter of revenue from compute\nservices, entirely contributed by the Axe Compute Access service delivery\nmodel; Axe Compute Build contract revenue is not yet recognized and begins at\ngo-live.\n* Net loss of $17.2 million, driven by a non-cash $13.1 million loss on\ndigital assets, primarily reflecting changes in digital asset holdings and\nrelated receivables.\n* Adjusted EBITDA(1) of approximately ($4.9 million), with approximately ($0.9\nmillion) attributable to the legacy Drug Discovery Services (Helomics)\nsegment.\n* Cash of $21.9 million at quarter-end, up from $6.9 million at March 31,\n2026.\n* Customer prepayments of $60.8 million and net cash provided by operating\nactivities of $17.4 million for the first half of 2026.\n* More than $3 billion in 2026 total contract value (“TCV”)(2), including\nmore than $2.8 billion in contracts signed in July under the Axe Compute Build\nmodel that were converted from the second quarter pipeline.\nQ2 2026 AND RECENT BUSINESS HIGHLIGHTS\n\nMore Than $2.8 Billion in New Contracts Signed (July 2026): Subsequent to\nquarter-end, the Company secured three new customer contracts across the\nUnited States and Europe with a TCV of more than $2.8 billion, all under the\nAxe Compute Build model. Together with the $260 million contract signed in\nApril, the Company's 2026 TCV now exceeds $3 billion, surpassing the $1\nbillion goal for new customer agreements announced in May 2026. The\nCompany’s annualized run rate (“ARR”)(3) is expected to reach more than\n$696M upon full deployment.\n\n$260 Million Cluster In Build, Targeted for Q3 2026 Go-Live: The dedicated\ncluster of 2,304 NVIDIA B300 GPUs under the Company's 36-month take-or-pay\ncontract announced in April progressed through build during the quarter.\nDeployment remains targeted for Q3 2026. Once live, the contract represents\napproximately $21 million per quarter in recognizable revenue over the\n36-month service term.\n\nContract Liabilities Grew to $60.8 Million: Contract liabilities, representing\ncustomer prepayments that are generally non-cancellable and non-refundable and\nare received ahead of revenue recognition, grew from $0.8 million at March 31,\n2026 to $60.8 million at June 30, 2026. Customer prepayments fund\ninfrastructure ahead of deployment, a central feature of the Company's\ncapital-efficient operating model.\n\nSECOND QUARTER 2026 FINANCIAL HIGHLIGHTS\n\nRevenue: $3.2 million in Q2 2026, up from $35 thousand in Q1 2026 and compared\nto $3 thousand in Q2 2025, before the Company began providing compute\nservices. Compute Services contributed $3.2 million, the segment's first full\nquarter of recognized revenue, reflecting contracts delivered through the Axe\nCompute Access model. Revenue from the Company's Build contracts is not yet\nreflected in reported results; recognition begins at go-live of the contracted\nclusters. The current period's margin profile reflects the Access model only\nand does not reflect the economics of the Build business, and the revenue mix\nand economics of the Company are expected to change materially as Build\ndeployments come online.\n\nNet Loss: $17.2 million for Q2 2026, or $0.87 per share. The reported net loss\nwas driven primarily by $13.1 million in losses on digital assets in the\nquarter ($17.4 million year to date). These represent primarily non-cash\nfair-value changes on the Company's ATH digital asset holdings and related\nreceivable and derivative positions, which under US GAAP are measured at each\nreporting date. Management believes the reported net loss does not reflect the\noperating performance or cash usage of the business.\n\nAdjusted EBITDA: ($4.9 million), excluding $11.8 million of unrealized losses\non digital assets, $0.6 million of stock-based compensation, and less than\n$0.1 million of combined depreciation, amortization, and net interest income;\napproximately ($0.9 million) was attributable to the legacy Drug Discovery\nServices segment.\n\nCash and Digital Assets: Cash and cash equivalents grew to $21.9 million at\nJune 30, 2026, up from $10.8 million at December 31, 2025 and $6.9 million at\nMarch 31, 2026. The Company also held $11.3 million in digital assets,\nprimarily Aethir (“ATH”), and $10.3 million in digital asset receivables\nat June 30, 2026 for a total of $21.6 in digital assets.\n\nPositive Operating Cash Flow: Net cash provided by operating activities of\ncontinuing operations was $17.4 million for the six months ended June 30,\n2026, compared to net cash used of $4.3 million in the prior-year period,\ndriven primarily by customer prepayments under Compute Services contracts.\n\nOUTLOOK\n\nThe Company does not provide formal financial guidance. The following\nforward-looking context is provided to assist investors in understanding\nmanagement's operational priorities, and is subject to the risks and\nuncertainties described under \"Cautionary Statement Regarding Forward-Looking\nStatements\" below.\n\nManagement's operational priorities for the balance of 2026 include: (i)\ncompleting the build and achieving go-live of the $260 million dedicated GPU\ncluster, targeted for Q3 2026, and commencing recognition of approximately $21\nmillion per quarter in revenue under that contract upon deployment; (ii)\nexecuting against the more than $2.8 billion in contracts signed in July 2026,\nincluding facility readiness, equipment procurement, and deployment planning\nacross the United States and Europe; (iii) continuing to expand the enterprise\nsales team and convert the Company's pipeline; and (iv) completing the\nstrategic alternatives process for the legacy Drug Discovery Services\nbusiness.\n\nCONFERENCE CALL AND WEBCAST\n\nManagement will host a conference call and webcast to discuss the Company's\nsecond quarter 2026 results on Monday, August 17, 2026 at 8:30 a.m. Eastern\nTime. Participants may join by dialing +1 720 707 2699 (Meeting ID: 867 5256\n5005, Passcode: 279379) or via live webcast at\nhttps://bit.ly/AxeComputeQ22026. A replay of the webcast will be available on\nthe Company's investor relations website at investors.axecompute.com following\nthe call.\n\nABOUT AXE COMPUTE\n\nAxe Compute Inc. (NASDAQ: AGPU) is a neocloud AI infrastructure platform built\non a fundamental premise: AI innovation should not be constrained by hardware\nchoice or availability. The company provides enterprises and AI innovators\nwith flexibility across hardware, geography, and deployment models through two\ncore offerings: Axe Compute Access, delivering a wide range of the latest\nhigh-performance GPU infrastructure across global locations, and Axe Compute\nBuild, enabling the design, deployment, ownership, and operation of\nlarge-scale, dedicated AI infrastructure worldwide. All solutions are\nsupported by enterprise-grade SLAs and operational expertise. Axe Compute is\nheadquartered in Pittsburgh, Pennsylvania. For more information, visit\naxecompute.com.\n\nINVESTOR CONTACT\n\nErin McMahon, CMO and Head of Investor Relations\n\nir@axecompute.com | investors.axecompute.com\n\nMEDIA CONTACT\n\nErin McMahon, CMO and Head of Investor Relations\n\nerin@axecompute.com\n\nCAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS\n\nThis press release contains \"forward-looking statements\" within the meaning of\nthe Private Securities Litigation Reform Act of 1995, as well as Section 27A\nof the Securities Act of 1933, as amended, and Section 21E of the Securities\nExchange Act of 1934, as amended. Forward-looking statements include, but are\nnot limited to, statements regarding the deployment timeline and revenue\nexpectations for the $260 million enterprise contract, the execution and\ndeployment of the contracts signed in July 2026, the Company's commercial\nstrategy and pipeline, the expected evolution of the Company's revenue mix and\neconomics as Build contracts come online, the expected annualized run rate in\nfuture periods, the strategic alternatives process for the Drug Discovery\nServices segment, the Company's liquidity and capital resources, and the\nmarket opportunity for GPU compute infrastructure. These statements are based\non management's current expectations and beliefs as of the date of this\nrelease and are subject to significant risks and uncertainties that could\ncause actual results to differ materially, including but not limited to: risks\nrelated to the execution, enforceability, and customer performance under the\nCompany's contracts, including the $260 million contract and the contracts\nsigned in July 2026; hardware supply chain constraints and facility readiness;\nthe highly volatile and unpredictable price of ATH and digital assets\ngenerally; the Company's ability to generate and grow Compute Services\nrevenue; risks associated with the Aethir network and decentralized physical\ninfrastructure; the Company's ability to maintain Nasdaq listing compliance;\nrisks related to the strategic alternatives process for the Drug Discovery\nServices business; and those risks and uncertainties described in the\nCompany's Annual Report on Form 10-K for the fiscal year ended December 31,\n2025, filed with the SEC on March 31, 2026, and in the Company's Quarterly\nReport on Form 10-Q for the quarter ended June 30, 2026. The Company\nundertakes no obligation to update or revise any forward-looking statements,\nexcept as required by applicable law.\n\nNON-GAAP FINANCIAL MEASURES\n\nThis press release includes “Adjusted EBITDA,” which is a non-GAAP\nfinancial measure. The Company defines Adjusted EBITDA as net income (loss)\nadjusted to exclude: (i) interest expense (income), net; (ii) income tax\nexpense (benefit); (iii) depreciation and amortization; (iv) stock-based\ncompensation expense; and (v) unrealized (gains) losses on digital assets.\nUnrealized (gains) losses on digital assets represent mark-to-market, fair\nvalue adjustments related to digital assets and digital asset receivables, and\ndo not include realized gains and losses on digital assets, including from ATH\nused to pay for compute the Company then sells to customers. Adjusted EBITDA\nis not a substitute for net income (loss) or any other measure of financial\nperformance prepared in accordance with U.S. GAAP and may not be comparable to\nsimilarly titled measures used by other companies. Management believes\nAdjusted EBITDA is useful to investors because it provides a supplemental\nmeasure of the Company’s core operating performance by excluding the effects\nof capital structure decisions (such as interest expense), non-cash charges\n(such as depreciation, amortization and stock-based compensation), unrealized\nfair value adjustments (such as changes in volatile market price of digital\nasset holdings) and tax impacts that can vary significantly between periods\nand across companies. Management uses Adjusted EBITDA to evaluate the\nCompany’s performance, compare performance across periods, and assist in the\nallocation of resources. Investors are cautioned that Adjusted EBITDA has\nlimitations as an analytical tool and should not be considered in isolation or\nas a substitute for analysis of the Company’s results as reported under U.S.\nGAAP.\n\nA reconciliation of Adjusted EBITDA to the most directly comparable U.S. GAAP\nfinancial measure is included in the tables accompanying this press release.\nTo the extent the Company provides forward-looking Adjusted EBITDA guidance in\nconnection with this release or the related earnings call, a reconciliation of\nsuch forward-looking non-GAAP measure to the most directly comparable U.S.\nGAAP measure may not be available without unreasonable effort due to the\ninherent difficulty in forecasting and quantifying certain amounts, including\nbut not limited to fair value adjustments on digital asset holdings,\nstock-based compensation expense, and other non-cash or non-recurring items,\nthe timing and magnitude of which may be significant.\n\nFINANCIAL STATEMENTS\nSUMMARY CONDENSED CONSOLIDATED BALANCE SHEETS\n(Unaudited)\n\n                                                   June 30, 2026  December 31, 2025  \n ASSETS                                                                              \n Cash and cash equivalents                         $21,905,767    $10,790,850        \n Accounts receivable                               3,321,426      32,120             \n Compute prepayments (current)                     11,148,981     —                  \n Digital assets                                    11,268,342     24,439,598         \n Digital asset receivable (current)                7,547,221      7,226,475          \n Other current assets                              873,423        280,904            \n Total current assets                              56,065,160     42,769,947         \n Compute prepayments, net of current portion       22,946,761     —                  \n Digital asset receivable, net of current portion  2,745,004      8,258,681          \n Property and equipment, net                       17,291,873     223,128            \n Other non-current assets                          1,327,158      1,636,590          \n Total assets                                      $100,375,956   $52,888,346        \n LIABILITIES & STOCKHOLDERS' EQUITY                                                  \n Accounts payable                                  $2,494,038     $1,840,608         \n Contract liabilities (current)                    33,645,987     144,076            \n Other current liabilities                         2,546,883      2,282,212          \n Total current liabilities                         38,686,908     4,266,896          \n Contract liabilities, net of current portion      27,108,685     —                  \n Other long-term liabilities                       535,168        904,495            \n Total liabilities                                 66,330,761     5,171,391          \n Total stockholders' equity                        34,045,195     47,716,955         \n Total liabilities and stockholders' equity        $100,375,956   $52,888,346        \n\nSUMMARY STATEMENTS OF NET LOSS\n(Unaudited)\n\n                                        For the Three Months Ended      For the Six Months Ended      \n                                        June 30, 2026   June 30, 2025   June 30, 2026  June 30, 2025  \n Revenue                                $3,214,992      $2,682          $3,250,303     $112,992       \n Gains (losses) on digital assets       $(13,125,352)   —               $(17,421,620)  —              \n Total operating costs and expenses     $(7,417,650)    $(2,662,550)    $(10,885,374)  $(5,059,907)   \n Total operating loss                   $(17,328,010)   $(2,659,868)    $(25,056,691)  $(4,946,915)   \n Other income, net                      $122,128        $680,973        $141,866       $682,604       \n Net loss                               $(17,205,882)   $(2,070,462)    $(24,914,825)  $(4,513,335)   \n Net loss per share, basic and diluted  $(0.87)         $(0.23)         $(1.45)        $(0.55)        \n Weighted avg. shares outstanding       19,685,811      9,108,984       17,167,696     8,136,008      \n\nRECONCILIATION OF NET LOSS TO ADJUSTED EBITDA\n(Unaudited)\n\n                                              For the Three Months Ended      \n                                              June 30, 2026   June 30, 2025   \n Net loss from continuing operations          $(17,205,882)   $(1,978,896)    \n Net interest (income) expense                (74,928)        789             \n Income tax (benefit) expense                 -               -               \n Depreciation and amortization                26,234          32,611          \n Stock-based compensation expense             571,584         -               \n Unrealized (gains) losses on digital assets  11,798,221      -               \n Adjusted EBITDA                              $ (4,884,771 )  $ (1,945,496 )  \n\nSUMMARY STATEMENTS OF CASH FLOWS\n(Unaudited)\n\n                                                                 For the Six Months Ended      \n                                                                 June 30, 2026  June 30, 2025  \n Net cash provided by (used in) continuing operating activities  $17,370,239    $(4,280,632)   \n Net cash (used in) continuing investing activities              (17,121,106)   -              \n Net cash provided by continuing financing activities            10,865,784     3,226,593      \n Net cash provided by discontinued operations                    -              825,444        \n Net increase (decrease) in cash and cash equivalents            $ 11,114,917   $ (228,595 )   \n\n\n\n______________________________\n(1) Adjusted EBITDA is a non-GAAP financial measure. See “Non-GAAP Financial\nMeasures” and reconciliation tables.\n(2) Total contract value is an operating metric representing the aggregate\nestimated contractual spend under signed customer contracts, and may not\nrepresent revenue recognized in any particular period as separately determined\nin accordance with US GAAP.\n(3) Annualized run rate is an operating metric representing annualized monthly\nrevenue upon full deployment of signed contracts. Annualized run rate is an\nestimate and does not represent revenue recognized in a particular period as\nseparately determined in accordance with US GAAP.\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/0722059f-4d31-435e-974f-ff669a2cb2e4)\n\n\n\nGlobeNewswire, Inc. 2026"},"type":"article","timestamp":"2026-08-14T21:00:00.35510246Z","server_sent_at_ms":1786741200355},"received_at":"2026-08-14T21:00:00.408Z","source_url":"https://www.globenewswire.com/news-release/2026/08/14/3345646/37244/en/axe-compute-inc-reports-second-quarter-2026-financial-results-and-provides-business-update.html"},"analysis":{"id":"108813","press_release_id":"119821","analysis_json":{"industry":{"label":"IT Services","sector":"Information Technology"},"redFlags":["Reported net loss driven by $13.1 million in non-cash digital asset losses","Build contract revenue is not yet recognized and depends on go-live timelines","Company holds $11.3 million in digital assets and $10.3 million in digital asset receivables, subject to volatility"],"eventType":"earnings","narrative":"Axe Compute reported Q2 revenue of $3.2 million, growing more than 90x sequentially, marking the first full quarter of revenue from its compute services business.\n\nThe company signed over $2.8 billion in new contracts in July, bringing 2026 total contract value to over $3 billion with an expected annualized run rate of $696 million upon full deployment.\n\nWhile Q2 net loss was $17.2 million, driven primarily by a non-cash $13.1 million loss on digital assets, cash balance grew to $21.9 million and operating cash flow was positive at $17.4 million for the first half of the year.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Explosive revenue growth and a $3B contract backlog signal the start of Axe Compute's GPU infrastructure monetization."},"keyFigures":{"revenue":3214992,"guidance":"No formal financial guidance provided. Management expects $21 million per quarter in revenue from the $260 million cluster upon Q3 2026 go-live, and $696 million annualized run rate upon full deployment of $3 billion+ backlog.","customDimensions":{"cash_balance":21905767,"contract_liabilities":60800000,"new_contracts_july_2026":2800000000,"operating_cash_flow_6mo":17370239,"total_contract_value_2026":3000000000,"expected_arr_upon_deployment":696000000}},"quotedText":"In less than eight months, we have gone from our first revenue-generating compute contract to more than $3 billion in signed contract value.","namedEntities":{"people":[{"name":"Christopher Miglino","role":"Chief Executive Officer"},{"name":"Erin McMahon","role":"CMO and Head of Investor Relations"}],"products":["Axe Compute Access","Axe Compute Build","NVIDIA B300 GPUs"],"companies":[{"name":"Axe Compute Inc.","ticker":"AGPU"},{"name":"NVIDIA","relationship":"hardware supplier"},{"name":"Aethir","relationship":"digital asset partner"},{"name":"Helomics","relationship":"legacy segment"}],"dollarAmounts":[{"amount":"$3.2 million","context":"Q2 2026 revenue"},{"amount":"$3 billion","context":"2026 total signed contract value"},{"amount":"$2.8 billion","context":"New contracts signed in July 2026"},{"amount":"$696M","context":"Expected annualized run rate upon full deployment"},{"amount":"$260 million","context":"April contract value"},{"amount":"$21.9 million","context":"Cash at quarter-end"},{"amount":"$60.8 million","context":"Customer prepayments / Contract liabilities"},{"amount":"$17.4 million","context":"Net cash provided by operating activities (6mo)"}]},"materialImpact":{"score":4,"reasoning":"Massive sequential revenue growth (90x) in the first full quarter of operations, driven by new GPU compute services. The company also announced a significant backlog of $3 billion in signed contracts for 2026, translating to an expected ARR of $696 million. While net loss was high due to non-cash digital asset charges, the cash balance tripled to $21.9 million, and operating cash flow turned positive."},"tickerRelevance":{"others":[],"primary":"AGPU"},"globalImportance":35,"audienceRelevance":45,"eventTypeSecondary":["operations_update"],"importanceComponents":{"tickerTier":"Small-cap","eventGravity":"High-growth small-cap earnings with massive backlog update","sectorWeight":"AI Infrastructure / GPU Compute","householdBrandBoost":false}},"event_type":"earnings","event_type_secondary":["operations_update"],"sentiment":"bullish","material_impact_score":4,"narrative":"Axe Compute reported Q2 revenue of $3.2 million, growing more than 90x sequentially, marking the first full quarter of revenue from its compute services business.\n\nThe company signed over $2.8 billion in new contracts in July, bringing 2026 total contract value to over $3 billion with an expected annualized run rate of $696 million upon full deployment.\n\nWhile Q2 net loss was $17.2 million, driven primarily by a non-cash $13.1 million loss on digital assets, cash balance grew to $21.9 million and operating cash flow was positive at $17.4 million for the first half of the year.","key_figures":{"revenue":3214992,"guidance":"No formal financial guidance provided. Management expects $21 million per quarter in revenue from the $260 million cluster upon Q3 2026 go-live, and $696 million annualized run rate upon full deployment of $3 billion+ backlog.","customDimensions":{"cash_balance":21905767,"contract_liabilities":60800000,"new_contracts_july_2026":2800000000,"operating_cash_flow_6mo":17370239,"total_contract_value_2026":3000000000,"expected_arr_upon_deployment":696000000}},"named_entities":{"people":[{"name":"Christopher Miglino","role":"Chief Executive Officer"},{"name":"Erin McMahon","role":"CMO and Head of Investor Relations"}],"products":["Axe Compute Access","Axe Compute Build","NVIDIA B300 GPUs"],"companies":[{"name":"Axe Compute Inc.","ticker":"AGPU"},{"name":"NVIDIA","relationship":"hardware supplier"},{"name":"Aethir","relationship":"digital asset partner"},{"name":"Helomics","relationship":"legacy segment"}],"dollarAmounts":[{"amount":"$3.2 million","context":"Q2 2026 revenue"},{"amount":"$3 billion","context":"2026 total signed contract value"},{"amount":"$2.8 billion","context":"New contracts signed in July 2026"},{"amount":"$696M","context":"Expected annualized run rate upon full deployment"},{"amount":"$260 million","context":"April contract value"},{"amount":"$21.9 million","context":"Cash at quarter-end"},{"amount":"$60.8 million","context":"Customer prepayments / Contract liabilities"},{"amount":"$17.4 million","context":"Net cash provided by operating activities (6mo)"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-08-14T21:21:33.729Z","global_importance":35,"audience_relevance":45,"importance_components":{"tickerTier":"Small-cap","eventGravity":"High-growth small-cap earnings with massive backlog update","sectorWeight":"AI Infrastructure / GPU Compute","householdBrandBoost":false}},"durationMs":277679,"modelName":"glm-4.7"}}