| Segment Reporting |
The following tables present segment information, including revenue by segment and segment profit (loss) for the fiscal years ended May 31, 2026, 2025, and 2024 (in thousands): | | | | | | | | | | | | | Fiscal Year Ended May 31, 2026 | | Data Center Hosting Business | | HPC Hosting Business | | Revenue: | | | | | Services revenue | $ | 154,403 | | | $ | 270,602 | | | Data center rental and other revenue | $ | — | | | $ | 114,702 | | | | | | Total segment revenue | 154,403 | | | 385,304 | | | Costs and expenses: | | | | | Services cost of revenue | 102,980 | | | 258,147 | | | Data center rental and other cost of revenue | — | | | 56,773 | | | Selling, general and administrative | 2,516 | | | 30,017 | | | | | | | Loss on abandonment of assets | 570 | | | 1,240 | | | | | | | Total costs and expenses | 106,066 | | | 346,177 | | | Segment profit | $ | 48,337 | | | $ | 39,127 | |
| | | | | | | | | | | | | Fiscal Year Ended May 31, 2025 | | Data Center Hosting Business | | HPC Hosting Business | Revenue: | | | | | Services revenue | $ | 142,267 | | | $ | — | | | Data center rental and other revenue | $ | — | | | $ | — | | | Related party revenue | 1,926 | | | — | | | Total segment revenue | 144,193 | | | — | | | Costs and expenses: | | | | | Services cost of revenue | 100,744 | | | 143 | | | Data center rental and other cost of revenue | — | | | — | | | Selling, general and administrative | 3,006 | | | 11,943 | | | Loss on classification of held for sale | (24,616) | | | — | | | Loss on abandonment of assets | 1,132 | | | — | | | | | | | Total costs and expenses | 80,266 | | | 12,086 | | Segment profit (loss) | $ | 63,927 | | | $ | (12,086) | |
| | | | | | | | | | | | | Fiscal Year Ended May 31, 2024 | | Data Center Hosting Business | | HPC Hosting Business | Revenue: | | | | | Services revenue | $ | 121,857 | | | $ | — | | | Data center rental and other revenue | $ | — | | | $ | — | | | Related party revenue | 14,761 | | | — | | | Total segment revenue | 136,618 | | | — | | | Costs and expenses: | | | | | Services cost of revenue | 106,022 | | | 50 | | | Data center rental and other cost of revenue | — | | | — | | | Selling, general and administrative | 10,367 | | | 4,761 | | | Loss on classification of held for sale | 15,417 | | | — | | | | | | | | | | | Total costs and expenses | 131,806 | | | 4,811 | | | Segment profit (loss) | $ | 4,812 | | | $ | (4,811) | |
The Company also provides the following additional segment disclosures (in thousands): | | | | | | | | | | | | | | | | | | | Fiscal Year Ended | | May 31, 2026 | | May 31, 2025 | | May 31, 2024 | | Depreciation and amortization: | | | | | | | Data Center Hosting Business | $ | 12,888 | | | $ | 13,312 | | | $ | 19,948 | | | HPC Hosting Business | 34,414 | | | 3,733 | | | 1,233 | | Other (1) | 20,087 | | | 117,664 | | | 58,179 | | Total depreciation and amortization (2) | $ | 67,389 | | | $ | 134,709 | | | $ | 79,360 | | | | | | | | | Capital expenditures: | | | | | | | Data Center Hosting Business | $ | (1,234) | | | $ | 9,320 | | | $ | 38,266 | | | HPC Hosting Business | 2,988,712 | | | 976,506 | | | 207,299 | | Other (1) | 54,678 | | | 995 | | | 84,373 | | | Total capital expenditures | $ | 3,042,156 | | | $ | 986,821 | | | $ | 329,938 | |
(1)Other includes corporate related items not allocated to reportable segments. (2)Includes amortization of the finance lease right-of-use assets. Information on segment assets and a reconciliation to consolidated assets are as follows (in thousands): | | | | | | | | | | | | | Fiscal Year Ended | | May 31, 2026 | | May 31, 2025 | Data Center Hosting Business | $ | 113,788 | | | $ | 141,764 | | HPC Hosting Business | 8,999,081 | | | 1,363,341 | | | Total segment assets | 9,112,869 | | | 1,505,105 | | Other (1) | 816,443 | | | 364,985 | | | Total assets | $ | 9,929,312 | | | $ | 1,870,090 | |
(1) Other includes corporate related items not allocated to reportable segments.
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| Schedule of Segment Profit and a Reconciliation to Net Income (Loss) Before Income Tax Expenses |
The following table presents a reconciliation to net loss from continuing operations before income tax expense (in thousands): | | | | | | | | | | | | | | | | | | | Fiscal Year Ended | | May 31, 2026 | | May 31, 2025 | | May 31, 2024 | | Segment profit (loss) | | | | | | | Data Center Hosting Business | $ | 48,337 | | | $ | 63,927 | | | $ | 4,812 | | | HPC Hosting Business | 39,127 | | | (12,086) | | | (4,811) | | | Total segment profit | 87,464 | | | 51,841 | | | 1 | | Other (1) | (323,926) | | | (124,016) | | | (98,339) | | | Operating loss | (236,462) | | | (72,175) | | | (98,338) | | | Interest expense, net | 29,516 | | | 32,139 | | | 27,517 | | | Gain on change in fair value of derivatives | (75,818) | | | — | | | — | | | Gain on change in fair value of investments | (10,840) | | | — | | | — | | | Loss on conversion of debt | — | | | 33,612 | | | — | | | Loss on change in fair value of debt | — | | | 85,439 | | | 7,401 | | | Loss on change in fair value of related party debt | — | | | — | | | 8,116 | | | Loss on extinguishment of debt | — | | | 1,177 | | | — | | | Loss on extinguishment of related party debt | — | | | — | | | 2,507 | | | Loss on change in fair value of warrants | 2,212 | | | 6,421 | | | — | | | Loss on change in fair value of related party warrants | — | | | — | | | 5,696 | | | Net loss from continuing operations before income tax expenses | $ | (181,532) | | | $ | (230,963) | | | $ | (149,575) | |
(1)Other includes corporate related items not allocated to reportable segments and ChronoScale.
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