v3.26.3
Business Segments
 3 Months Ended
Aug. 31, 2026
Segment Reporting [Abstract]  
Business Segments Business Segments
As discussed above, prior to the Business Combination, the Cloud Services Business was identified as a reportable segment. Following the consummation of the Business Combination in May 2026, which resulted in the formation of ChronoScale, the Cloud Services Business is no longer a reportable segment because its activities are not regularly reviewed by the CODM, which is the Company’s Chief Executive Officer, for purposes of resource allocation and performance assessment. As such, the results of ChronoScale, inclusive of the Cloud Services Business, which is now part of ChronoScale, are included in Other and are not separately presented as a segment for all periods presented.
The Company's business is made up of two operating segments: the Data Center Hosting Business and the HPC Hosting Business. These segments represent management's view of the business for which separate financial information is available and evaluated regularly by the CODM.
The Company's CODM evaluates performance and makes operating decisions primarily based on revenue and segment profit (loss) on a consolidated basis and for each of the Company's reportable segments. Operating results by segment include costs or expenses directly attributable to each segment, which include selling, general, and administrative expenses, loss on classification of held for sale and loss on abandonment of assets. The Company derives the segment results from its internal management reporting system. The accounting policies the Company uses to derive reportable segment results are the same as those used for external reporting purposes. Segment revenues and segment profit are regularly reviewed by the CODM and compared against historical results, forecast and budget information in order to make decisions about how to allocate capital and other resources to each segment.
The Company does not allocate interest expense, interest income, loss on change in fair value of derivatives, loss on change in fair value of investment, other expense, net or income tax expense to these segments for internal reporting purposes, as the Company does not believe that allocating these expenses is beneficial in evaluating segment performance. The "Other" includes corporate related items not allocated to reportable segments for purposes of making operating decisions or assessing financial performance.
The following tables present segment information, including revenue by segment and segment profit (loss) for the three months ended August 31, 2026 and August 31, 2025 (in thousands):
Three Months Ended August 31, 2026
Data Center Hosting Business
HPC Hosting Business
Revenue:
Services and other revenue$37,755 $183,518 
Data center rental and other revenue— 79,120 
Total segment revenue37,755 262,638 
Costs and expenses:
Services and other cost of revenue23,978 176,100 
Data center rental and other cost of revenue— 43,861 
Selling, general and administrative (1)
450 9,246 
Total costs and expenses24,428 229,207 
Segment profit$13,327 $33,431 
(1)Does not include selling, general and administrative expense that is not allocated to reportable segments, such as certain amounts of stock-based compensation, personnel expenses, and professional service expenses.
Three Months Ended August 31, 2025
Data Center Hosting Business
HPC Hosting Business
Revenue:
Services and other revenue$37,921 $26,296 
Data center rental and other revenue— — 
Total segment revenue37,921 26,296 
Costs and expenses:
Services and other cost of revenue30,409 25,044 
Data center rental and other cost of revenue— 140 
Selling, general and administrative (1)
965 1,894 
Loss on abandonment of assets
512 1,240 
Total costs and expenses31,886 28,318 
Segment profit (loss)$6,035 $(2,022)
(1)Does not include selling, general and administrative expense that is not allocated to reportable segments, such as certain amounts of stock-based compensation, personnel expenses, and professional service expenses.
The following tables present the reconciliation to net loss before income tax expense (in thousands):
Three Months Ended
August 31, 2026August 31, 2025
Segment profit
Data Center Hosting Business
$13,327 $6,035 
HPC Hosting Business33,431 (2,022)
Total segment profit46,758 4,013 
Other (1)
(109,137)(13,775)
Operating loss(62,379)(9,762)
Interest expense77,383 8,013 
Interest income(35,821)(857)
Loss on change in fair value of derivatives49,511 — 
Loss on change in fair value of investment11,352 — 
Other expense, net1,311 — 
Net loss before income tax expense$(166,115)$(16,918)
(1)Other includes corporate related items not allocated to reportable segments and ChronoScale.
We also provide the following additional segment disclosures (in thousands):
Three Months Ended
August 31, 2026August 31, 2025
Depreciation and amortization:
Data Center Hosting Business
$2,386 $3,391 
HPC Hosting Business
22,900 698 
Other (1)
16,626 63 
Total depreciation and amortization (2)
$41,912 $4,152 
(1)Other includes corporate related items not allocated to reportable segments and ChronoScale.
(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):
August 31, 2026May 31, 2026
Data Center Hosting Business
$111,850 $113,788 
HPC Hosting Business
10,805,831 8,999,081 
Total segment assets10,917,681 9,112,869 
Other (1)
789,495 816,443 
Total assets$11,707,176 $9,929,312 
(1)Other includes corporate related items not allocated to reportable segments and ChronoScale.