Note 12. Leases

Operating Leases

The Company enters into colocation and data center leases in the United States for dedicated data center space where the Company keeps its GPU servers and related hardware. The colocation and data center leases provide the Company with minimum amounts of power capacity and costs for overages above the established capacity thresholds are charged to the Company. These overage payments are treated as variable lease payments and are excluded from the measurement of the colocation leases.

During the nine months ended September 30, 2026, the Company entered into four colocation leases. Two of these colocation leases were entered into during the first quarter of 2026, included lease terms of 3three and seven years, respectively, and required the Company to make fixed payments totaling $6,260 and $113,835, respectively, on an undiscounted basis. The Company was required to pay $365 and $6,788 in prepayments related to these leases, respectively. Additionally, the seven-year colocation lease required the Company to issue a standby letter of credit in the amount of $6,435 during the fourth quarter of 2025. The remaining two colocation leases were entered into during the second quarter of 2026, included lease terms of 3three years for each and required the Company to make fixed payments totaling $17,617 and $4,378, respectively, on an undiscounted basis. The Company was required to pay $625 in prepayments related to one of these leases.

During the third quarter of 2026, the Company modified one operating lease. The Company increased the power capacity and made certain additional changes to a data center lease which resulted in a net increase to the operating ROU asset of $2,556 at the modification date.

During the third quarter of 2026, the Company entered into a warehouse lease for a storage facility in Rock Island, Illinois. The lease includes a 5five year lease term and requires fixed payments totaling $1,111 on an undiscounted basis.

During the nine months ended September 30, 2025, the Company entered into two colocation leases. One of these colocation leases was entered into during the first quarter of 2025 and included a 3three-year lease term which required the Company to make fixed payments totaling $1,756 on an undiscounted basis. The other colocation lease was entered into during the second quarter of 2025 and included a 3three-year lease term which required the Company to make fixed payments totaling $8,317 on an undiscounted basis.

The Company leased office space in Chicago, IL, which had an initial lease term of 12.5 months and automatically extended for additional twelve-month renewal terms unless the Company provided advance notice of its intent to terminate at the end of the then-current lease term. The lease expired in February 2026.

Finance Leases

During the nine months ended September 30, 2026, the Company entered into 37 finance lease agreements for GPU servers. Twelve of these finance lease agreements were entered into during the first quarter of 2026, included 30-month lease terms, and required the Company to make fixed payments totaling $55,693 on an undiscounted basis. The Company made advance payments totaling $1,948 and $1,860 to secure five of these leases of GPUs during the first quarter of 2026 and fourth quarter of 2025, respectively. The Company made advance payments totaling $9,384 in April 2026 to secure the remaining seven leases of GPUs. Twenty-two of these finance lease agreements were entered into during the second quarter of 2026, included lease terms ranging from 30 to 36 months, and required the Company to make fixed payments totaling $240,190 on an undiscounted basis. The Company made advance payments totaling $26,206 to secure 13 of these leases. The Company entered into three finance lease agreements during the third quarter of 2026 and included lease terms of 24 and 36 months, respectively. The 24-month lease requires a first monthly payment of $36,845 and 23 remaining monthly payments of $4,257. The Company made advance payments totaling $59,155 to secure the 36-month lease, which requires fixed monthly payments of $2,672. The remaining financing lease agreement entered into during the third quarter of 2026 was executed in September 2026 with Dell Financial Services (“DFS”) and commenced on September 2, 2026. The lease has a six-month term and requires an initial prepayment of $88, in addition to a September 2026 monthly payment of $26, followed by three additional monthly payments of $26 and a final payment of $276. The Company identified the arrangement as a finance lease under ASC 842 because ownership of the underlying asset transfers to the Company at the end of the lease term for a nominal purchase price of $1. Accordingly, the Company will recognize a right-of-use asset and corresponding lease liability.

In July 2026, the Company exercised its option to purchase equipment leased from Hewlett Packard Financial Services Company (“HP”) under certain operating and finance leases. Upon exercising the buyout option, the Company derecognized the related lease liabilities and right-of-use assets and recognized the purchased equipment as property and equipment (Hardware).

During the nine months ended September 30, 2025, the Company entered into nine finance lease agreements for GPU servers that have 30-month lease terms and require the Company to make fixed payments totaling $40,548 on an undiscounted basis. The Company made advance payments totaling $2,314 to secure three of these leases of GPUs during the nine months ended September 30, 2025. The Company made advance payments totaling $546 to secure six of these leases of GPUs during the year ended December 31, 2024.

Short-term Leases

In October 2023, the Company entered into a twelve-month lease for dedicated colocation space and related services. The lease was treated as a short-term lease and was not recognized on the interim condensed consolidated balance sheets. The Company paid fees of $242 during the three months ended March 31, 2025. This lease was terminated in February 2025.

The following table presents the maturities of the Company’s operating and finance lease liabilities as of September 30, 2026:

Schedule of Future Minimum Lease Payments

In April and May 2026, the Company entered into two colocation leases that had not yet commenced as of September 30, 2026 and are not included in the disclosures above. Both leases have 7seven-year lease terms and require the Company to make fixed payments totaling $42,788 and $184,042, respectively, on an undiscounted basis. Additionally, the lease executed in May 2026 required the Company to issue a standby letter of credit in the amount of $12,960 during the second quarter of 2026.

In July and August 2026, the Company entered into two colocation leases that had not yet commenced as of September 30, 2026 and are not included in the disclosures above. The lease executed in July 2026 includes a 5five-year lease term and requires the Company to make fixed payments totaling $39,996. The lease executed in August 2026 includes a 12 year lease term and requires the Company to make fixed payments totaling $391,269.

Lessor Accounting

The Company generates income by renting access to its Nvidia GPUs through its proprietary platform, third-party AI platforms, and GPU brokers, under rental agreements. The Company’s agreements with lessees are categorized as either having terms greater than one month or having month-to-month terms. For the Company’s agreements greater than one month, lessees are required to make up-front payments at the inception of the agreement. Lessees in month-to-month agreements are required to make payments in arrears after the provision of services has been rendered. For three and nine months ended September 30, 2026, lease income generated for operating leases was $39,396 and $80,428, respectively. For the three and nine months ended September 30, 2025, lease income generated for operating leases was $3,810 and $14,848, respectively.