Exhibit 99.1
QumulusAI Reports Third Quarter 2026 Results
Quarterly revenue reaches $14.8 million, doubling sequentially for the second straight quarter; cumulative signed customer contract value surpasses $500 million.
ATLANTA, November 10, 2026 — QumulusAI (Nasdaq: QMLS), a neocloud infrastructure provider purpose-built for the AI computing era, today reported financial results for the third quarter ended September 30, 2026.

“Revenue doubled again this quarter, and remaining performance obligations grew to $515.0 million from $173.1 million at the end of the second quarter. That’s the model doing its job: we sell the capacity before we energize it, we deploy into pockets of existing power, and we bring it online in months, not years,” said Michael Maniscalco, CEO of QumulusAI. “And the third quarter is still early in that ramp. We had compute coming online throughout the quarter, and into the fourth, so much of it hasn’t yet billed for a full period.”
Third Quarter 2026 Financial Highlights
All comparisons, unless otherwise noted, are to the three months ended September 30, 2025.
•Revenue of $14.8 million, an increase of $11.7 million, or 376%, from $3.1 million. Compute power revenue grew to $14.1 million, or approximately 96% of total revenue, from $1.4 million, or approximately 47% of total revenue.
•Operating loss of $41.6 million, compared to $2.8 million. The increase reflects a $13.4 million increase in depreciation and amortization tied to expanded HPC (High-Performance Computing) infrastructure, as well as higher general and administrative costs associated with public company readiness, including $26.4 million related to shares of common stock issued for professional services in connection with the company's direct listing, and headcount growth.
•Net loss of $14.4 million, compared to a net loss of $9.5 million. The current period includes $32.3 million of non-cash gains from changes in the fair value of the convertible note, the related option and the warrant liability; the prior-year period included a $4.8 million non-cash loss from the change in fair value of the warrant liability.
•Adjusted EBITDA of $3.7 million, our first positive quarter, compared to a loss of $0.6 million, driven by growth in compute revenue.
Recent Corporate Developments
•Active capacity has reached 8 MW.
•Cumulative signed customer contract value surpassed $500 million, reaching $528.7 million.
•Signed $240.9 million in new three-year take-or-pay agreements, covering more than 2,000 NVIDIA Blackwell B300 GPUs across two dedicated clusters.
•Put the $71.9 million, three-year Blackwell agreement fully into production, with every GPU under the agreement billing within three months of signing.
•Contracted 1.2 MW in Denver, ready for service in Q1.
•Contracted 0.5 MW in Columbia, South Carolina, ready for service in December 2026.
Business Outlook
QumulusAI will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.



Webcast and Conference Call
QumulusAI will host a conference call and webcast today at 5:00 p.m. Eastern Time to discuss third quarter 2026 results. The live webcast, together with this release and supplemental materials, is available at investors.qumulusai.com. A replay will be available on the same site following the call.
Non-GAAP Financial Measures
To supplement its condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (“GAAP”), the company presents Adjusted EBITDA, a non-GAAP financial measure. QumulusAI’s reasons for use of this measure and reconciliation of this non-GAAP financial measure to the most directly comparable GAAP measure and other information are included at the end of this release. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for net income (loss) or any other measure prepared in accordance with GAAP.
About QumulusAI
QumulusAI is a distributed AI cloud platform that delivers accelerated access to high-performance GPU compute. Through an inference-first, demand-led deployment model across a network of data center sites, QumulusAI brings compute closer to customer demand, helping AI teams and enterprises scale production AI workloads with speed, flexibility and control. By combining rapid deployment with flexible private cloud infrastructure, QumulusAI gives customers a faster, more adaptable path beyond the capacity constraints of traditional centralized and hyperscale cloud models. Learn more at QumulusAI.com.
Follow us on LinkedIn and X @QumulusAI.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the value and term of the company’s signed customer contracts and the revenue the company expects to realize from them; the company's continued ability to deploy, sell, and bring online capacity on its anticipated timeline, the revenue the company expects to recognize in future periods from compute capacity brought online during and after the third quarter; and the expected timing on which contracted capacity will be ready for service including any related contingencies. Words such as “anticipate,” “believe,” “estimate,” “expect,” “guidance,” “intend,” “can,” “may,” “on track,” “plan,” “project,” “target,” “will” and similar expressions are intended to identify forward-looking statements. These statements are based on management's current expectations and assumptions as of the date of this release and are subject to risks and uncertainties that could cause actual results to differ materially, including, among others, the company's dependence on a limited number of large customers; the availability and cost of power, network connectivity and specialized hardware such as graphics processing units; the company's substantial capital requirements and access to financing; competition and rapid technological change in the high-performance computing and AI markets; the company's limited operating history and history of net losses; and those described in the “Risk Factors” section of the company's registration statement on Form S-1, as amended (File No. 333-292514), filed with the U.S. Securities and Exchange Commission (SEC), and the company’s quarterly report on Form 10-Q for the quarter ended September 30, 2026, as such factors may be updated in the company's subsequent filings with the SEC. QumulusAI undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by applicable law.
Investor Contact
investors@qumulusai.com
Media Contact
media@qumulusai.com


QUMULUSAI, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, 2026December 31, 2025
(unaudited)
ASSETS
Current assets:
Cash$21,909,713 $11,712,493 
Restricted cash9,225,679 — 
Accounts receivable, net of allowance for credit losses of $321,047 and $2,263 as of September 30, 2026 and December 31, 2025, respectively
30,647,719 57,889 
Deposits on power equipment - current2,137,972 7,238,383 
Prepaid expenses and other current assets4,288,244 1,134,851 
Total current assets68,209,327 20,143,616 
Property and equipment, net138,629,171 12,502,886 
Operating right-of-use assets, net1,345,047 1,438,970 
Finance right-of-use assets, net133,044,741 6,996,077 
Equity method investments— 4,227,130 
Investment in equity securities1,082,500 — 
Deposits on power equipment4,285,885 6,384,258 
Goodwill31,416,827 31,416,827 
Intangible assets, net7,224,902 7,268,513 
Other assets8,823,952 1,356,216 
Total assets$394,062,352 $91,734,493 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable$7,843,065 $1,248,175 
Dividend payable359,188 359,188 
Accrued expenses and other current liabilities7,299,193 2,833,337 
Deferred revenue - current portion33,174,971—
Current portion of notes payable14,862,6671,684,554
Current portion of notes payable - related party2,000,000 3,848,915 
Current portion of USD.AI protocol loans12,214,906 — 
Operating lease liabilities - current portion109,557 97,463 
Finance lease liabilities - current portion39,136,857 1,645,069 
Deferred tax liability274,554 423,381 
  Total current liabilities117,274,958 12,140,082 
Long-term notes payable, net of current portion44,245,099 6,241,948 
Operating lease liabilities, net of current portion1,430,559 1,497,549 
Finance lease liabilities, net of current portion83,353,330 5,179,828 
Warrant liability828,232 1,382,955 
Deferred revenue, net of current portion45,822,451 — 
Additional convertible notes option liability22,183,450 — 
USD.AI protocol loans, net of current portion20,319,360 — 
Convertible note payable32,040,000 — 
Other non-current liabilities1,313,364 — 
Total long-term liabilities251,535,845 14,302,280 
Total liabilities368,810,803 26,442,362 
Shareholders' Equity
Preferred stock - no par value; 100,000,000 and zero shares authorized as of September 30, 2026 and December 31, 2025, respectively; zero shares issued and outstanding as of September 30, 2026 and December 31, 2025
— — 
Common stock - no par value; 1,000,000,000 and 500,000,000 shares authorized as of September 30, 2026 and December 31, 2025, respectively; 34,699,038 and 31,367,559 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively
135,611,986 93,400,180 
Additional paid-in capital11,307,803 6,318,290 
Accumulated deficit(124,247,844)(37,546,254)
Total shareholders' equity attributable to QumulusAI shareholders22,671,945 62,172,216 
Non-controlling interests2,579,604 3,119,915 
Total shareholders' equity25,251,549 65,292,131 
Total liabilities and shareholders' equity$394,062,352 $91,734,493 



QUMULUSAI, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
2026202520262025
Revenue
Revenue from cryptocurrency mining$262,995 $211,765 $1,042,055 $507,604 
Revenue from mining hosting services365,854 1,445,669 2,008,059 4,794,821 
Revenue from compute power14,126,265 1,443,351 21,837,723 2,755,051 
Total revenue14,755,114 3,100,785 24,887,837 8,057,476 
Costs and expenses
Cost of revenue (exclusive of depreciation and amortization)
4,161,145 1,643,980 8,539,344 4,245,448 
General and administrative expenses35,671,537 2,638,965 43,921,812 6,081,954 
Sales and marketing expenses1,605,602 147,471 2,758,174 238,055 
Depreciation and amortization expense14,872,738 1,425,735 24,421,737 3,358,079 
Total costs and expenses56,311,022 5,856,151 79,641,067 13,923,536 
Operating loss(41,555,908)(2,755,366)(54,753,230)(5,866,060)
Other income (expenses)
Income from equity method investments— 179,617 21,994 1,043,937 
Gain on sale of equity method investments162,785 — 12,732,446 — 
Gain on remeasurement of investment in TCM— — — 14,549,536 
Change in fair value of warrant liability2,140,561 (4,844,713)554,723 (5,536,816)
Change in fair value of digital assets— 43,935 — 81,919 
Change in fair value of convertible note13,650,058 — 16,030,058 — 
Change in fair value of additional convertible notes option16,537,550 — 20,388,400 — 
Gain on sale or disposal of property and equipment— 462 36,298 462 
Loss on settlement of lease liability— (692,837)— (692,837)
Loss on issuance of convertible note— — (73,881,850)— 
Loss on extinguishment of debt— (883,667)— (1,037,501)
Other income (expense), net27,704 (2,183)(160,046)24,771 
Interest expense, net(5,369,084)(509,866)(7,953,108)(1,450,812)
Total other income (expenses), net27,149,574 (6,709,252)(32,231,085)6,982,659 
Income (loss) before income tax expense(14,406,334)(9,464,618)(86,984,315)1,116,599 
Income tax expense (benefit)36,237 (349)(148,827)284,771 
Net income (loss)$(14,442,571)$(9,464,269)$(86,835,488)$831,828 
Less: deemed dividend on conversion of preferred stock— 89,386,947 — 89,386,947 
Less: net income (loss) in non-controlling interests16,813 — (133,898)— 
Net loss attributable to common shareholders$(14,459,384)$(98,851,216)$(86,701,590)$(88,555,119)
Net loss per share attributable to common shareholders, basic and diluted$(0.43)$(5.34)$(2.68)$(5.36)
Weighted-average common stock outstanding, basic and diluted33,516,738 18,503,757 32,299,039 16,512,498 


QUMULUSAI, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Nine Months Ended September 30,
20262025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)$(86,835,488)$831,828 
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization expense10,585,870 2,554,911 
Amortization of right-of-use assets13,929,789 882,733 
Amortization of loan origination costs186,740 23,513 
Amortization of discount on convertible note— 135,334 
Provision for credit losses318,784 — 
Amortization of premium on loan receivable— (16,281)
Non-cash interest expense— 6,418 
Recovery of credit losses— (36,921)
Interest expense under finance lease obligations5,149,195 268,356 
Income from equity method investments(21,994)(1,043,937)
Gain on sale of equity method investments(12,732,446)— 
Gain on remeasurement of investment in TCM— (14,549,536)
Change in fair value of warrant liability(554,723)5,536,816 
Change in fair value of digital assets— (81,919)
Change in fair value of convertible note(16,030,058)— 
Change in fair value of additional convertible notes option(20,388,400)— 
Change in deferred taxes(148,827)284,771 
Stock-based compensation4,170,708 799,823 
Issuance of common stock for services26,412,529 — 
Issuance of warrants for services626,293 69,663 
Issuance of warrants as consideration payable to customer192,512 — 
Noncash revenue recognized from receipt of equity securities(82,500)— 
Gain on sale or disposal of property and equipment(36,298)(462)
Loss on issuance of convertible note73,881,850 — 
Loss on extinguishment of debt— 1,037,501 
Loss on settlement of lease liability— 692,837 
Changes in operating assets and liabilities:
Accounts receivable(30,908,614)8,764 
Due from related party— 82,213 
Prepaid expenses and other current assets(3,198,434)(207,498)
Other assets(1,467,885)— 
Proceeds from sale of digital assets102,746 3,045,949 
Mining of digital assets(102,746)(2,876,300)
Accounts payable6,594,890 508,549 
Accrued expenses4,465,856 114,685 
Deferred revenue78,997,422 — 
Operating lease liabilities(54,896)(43,940)
Intangible assets(89,112)(7,200)
Due to related party— (547,484)
Other non-current liabilities1,313,364 — 
Net cash provided by (used in) operating activities54,276,127 (2,526,814)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment(137,021,298)(1,226,323)
Proceeds from sale of property and equipment478,164 — 
Proceeds from disposal of property and equipment— 4,000 
Proceeds from collections of loans receivable— 285,654 
Deposits on power equipment5,274,478 (1,866,454)
Data center set up costs(5,999,851)— 
Purchase of equity securities(1,000,000)— 
Proceeds from sale of U.S. dollar coin— 391,584 
Proceeds from sale of digital asset reserve— 393,460 
Cash acquired as part of business acquisition— 2,441,275 
Dividends paid on common stock— (36,759)
Proceeds from sale of equity method investments16,722,407 — 
Distributions from equity method investments259,163 2,422,000 
Distributions to joint venture partners(406,413)— 
Net cash (used in) provided by investing activities(121,693,350)2,808,437 
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of common stock, net of issuance costs5,980,834 21,355,080 
Redemption of preferred stock— (293,742)
Repayments on finance lease obligations(27,399,088)(1,289,600)
Proceeds from convertible note payable28,800,000 — 
Proceeds from notes payable, net of issuance costs51,378,460 — 
Proceeds from notes payable - related party— 7,170 
Proceeds from exercise of warrants27,501 72,659 
Proceeds from exercise of options— 112,600 
Proceeds from line of credit, net of issuance costs34,996,018 — 
Repayments of line of credit(2,570,755)(299,077)
Repayments of notes payable(2,522,960)(579,999)
Repayments of notes payable - related party(1,849,888)(722,838)
Repayments of convertible note payable - related party— (3,226,548)
Repayments of convertible notes payable— (1,150,000)
Net cash provided by financing activities86,840,122 13,985,705 
NET CHANGE IN CASH AND RESTRICTED CASH19,422,899 14,267,328 
CASH AND RESTRICTED CASH, beginning of period11,712,493 3,970,466 
CASH AND RESTRICTED CASH, end of period$31,135,392 $18,237,794 
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for income taxes$— $— 
Cash paid for interest$6,714,464 $907,788 
Non-cash financing and investing activities
Issuance of warrants for property and equipment$— $104,854 
Issuance of warrants as offering costs$— $135,482 
Non-cash contribution to equity method investment$— $115,210 
Issuance of common stock for settlement of lease liability$— $1,444,300 
Conversion of preferred stock to common stock$— $36,896,276 
Issuance of Common Stock and Series D Preferred Stock for the acquisition of TCM$— $20,250,013 
Exchange of TCM stock options resulting in issuance of stock options in acquisition$— $1,883,956 
Issuance of preferred stock upon partial conversion of convertible note$— $1,711,837 
Transfer of leased assets to property and equipment upon lease buyout$— $1,340,882 
Issuance of common stock for conversion of convertible notes$9,790,942 $— 
Acquisition of right-of-use asset in exchange for lease obligations$139,884,530 $6,528,526 
Lease liabilities arising from obtaining right-of-use assets$137,915,183 $6,787,230 


Reconciliation of Net Income (Loss) to Adjusted EBITDA (Unaudited)
The accompanying press release refers to Adjusted EBITDA, a non-GAAP financial measure not calculated or presented in accordance with GAAP. This non-GAAP financial measure is supplemental information and in addition to the financial measures presented in the accompanying release that are calculated and presented in accordance with GAAP.
EBITDA is defined as net income (loss) before interest expense, net; income tax expense (benefit); and depreciation and amortization. Adjusted EBITDA is defined as EBITDA further adjusted to exclude stock-based compensation expense, common stock issued for professional services in connection with the direct listing, and gains and losses arising from the issuance, remeasurement, extinguishment or disposition of financial instruments, investments and other assets, and the settlement of lease liabilities. Net income (loss) margin is calculated as net income (loss) divided by revenue, and Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by revenue.
Management uses Adjusted EBITDA to evaluate operating performance, establish budgets and forecasts and make operational decisions. The company believes the measure is useful to investors because it excludes items that management does not consider indicative of the underlying operating performance of the business, and because it facilitates comparison of results across periods.
Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for net income (loss) or any other measure prepared in accordance with GAAP. Among other limitations, Adjusted EBITDA excludes depreciation and amortization of assets that are central to the company’s ability to generate revenue, and excludes interest expense and amortization associated with the company’s finance lease obligations, under which the company expects to make payments of approximately $13.0 million during the remainder of 2026 and approximately $53.3 million during 2027. Adjusted EBITDA as defined by the company may not be comparable to similarly titled measures reported by other companies.
For the Three Months Ended September 30, For the Nine Months Ended September 30,
2026202520262025
Net income (loss)$(14,442,571)$(9,464,269)$(86,835,488)$831,828 
Depreciation and amortization (inclusive of ROU amortization)14,872,738 1,425,735 24,421,737 3,358,079 
Interest expense, net5,369,084 509,866 7,953,108 1,450,812 
Income tax expense (benefit)36,237 (349)(148,827)284,771 
Stock-based compensation3,928,899 549,271 4,170,708 799,823 
Common stock issued for professional services in connection with the direct listing26,412,529 — 26,412,529 — 
Change in fair value of warrant liability(2,140,561)4,844,713 (554,723)5,536,816 
Change in fair value of digital assets— (43,935)— (81,919)
Change in fair value of convertible note(13,650,058)— (16,030,058)— 
Change in fair value of additional convertible notes option(16,537,550)— (20,388,400)— 
Loss on settlement of lease liability— 692,837 — 692,837 
Gain on sale of equity method investments(162,785)— (12,732,446)— 
Gain on sale or disposal of property and equipment— (462)(36,298)(462)
Loss on issuance of convertible note— — 73,881,850 — 
Loss on extinguishment of debt— 883,667 — 1,037,501 
Gain on remeasurement of investment in TCM— — — (14,549,536)
Adjusted EBITDA$3,685,962 $(602,926)$113,692 $(639,450)
Revenue$14,755,114 $3,100,785 $24,887,837 $8,057,476 
Net income (loss) margin(98)%(305)%(349)%10 %
Adjusted EBITDA margin25 %(19)%— %(8)%