Financial Trends -- 3/10
Post-bankruptcy company with limited financial history. Revenue growing rapidly on HPC/AI colocation
buildout but from a small base. FCF negative in all 9 reported quarters and deteriorating (-$52M FY24
to -$451M FY25; -$139M Q1'26) as capex ramps toward ~$2.0B 2026 plan. GAAP operating results distorted
by bankruptcy fresh-start accounting and warrant mark-to-market. Revenue and gross profit are the only
clean trend reads. 67% of Q1'26 revenue from CoreWeave single tenant.
Weight: 25%
Revenue
Growing
HPC/AI colocation ramp | from small base
FCF FY25
-$451M
Negative all 9 quarters | deteriorating
Capex FY26 Plan
~$2.0B
Massive buildout | cash burn
CoreWeave % of Q1'26 Rev
67%
Single-tenant concentration | risk
Revenue: Growing From Small Base
Revenue growing rapidly on HPC/AI colocation buildout, but from a small base and with heavy single-tenant concentration.
The colocation pivot is driving top-line growth as Bitcoin mining revenue declines post-halving.
Q1'26 revenue was dominated by CoreWeave at 67% of total -- a single-customer dependency that
introduces material concentration risk. Revenue and gross profit are the only financial metrics
that provide a clean read; everything else is distorted by fresh-start accounting, warrant
mark-to-market, and restructuring noise.
| Metric | FY24 | FY25 | Q1'26 |
|---|---|---|---|
| Total Revenue ($M) | $515M | $319M | -- |
| CoreWeave % of Revenue | — | — | 67% |
| Colocation (AI/HPC) Revenue | $24.4M | $65.4M | — |
| Self-Mining Revenue | $409M | $229M | — |
No Daloopa coverage. Figures from FMP. FYE December 31.
Free Cash Flow: Deeply Negative and Deteriorating
FCF negative in all 9 reported quarters and deteriorating: -$52M FY24, -$451M FY25, -$139M Q1'26.
The trajectory is worsening, not improving, as capex ramps toward the ~$2.0B FY26 plan. Operating
cash flow is propped up by deferred revenue from CoreWeave advance payments, masking the true cash
consumption of the business. The company is liquidating BTC holdings and issuing convertible debt
to fund the buildout.
| Cash Flow Item | FY24 | FY25 | Q1'26 |
|---|---|---|---|
| Free Cash Flow ($M) | -$52M | -$451M | -$139M |
| FCF Trend | — | -8.7x worse | Annualizing -$556M+ |
| Capex FY26 Plan | — | — | ~$2.0B |
No Daloopa coverage. Figures from FMP. FYE December 31.
Profitability: GAAP Non-Meaningful
Fresh-start accounting and warrant mark-to-market make GAAP operating results non-meaningful.
Net income swings wildly quarter to quarter driven by non-cash items -- warrant revaluations,
CVR mark-to-market, and fresh-start fair value adjustments -- not operating performance. Revenue
and gross profit are the only line items that provide a clean signal. There is no consistent
earnings power to evaluate.
Post-bankruptcy fresh-start accounting adopted Jan 2024. Warrant and CVR mark-to-market creates large non-cash P&L swings. Figures from FMP.
Key Points
Revenue Positive
1. Revenue growing from small base -- HPC/AI colocation buildout driving top line
2. Colocation revenue +168% YoY -- real demand, not narrative
2. Colocation revenue +168% YoY -- real demand, not narrative
Negatives
1. FCF deeply negative and worsening -- -$52M FY24 to -$451M FY25 to -$139M Q1'26
2. Capex massive -- ~$2B FY26 plan, funded by debt and BTC liquidation
3. Single-tenant risk -- CoreWeave 67% of Q1'26 revenue
4. Fresh-start accounting -- GAAP results non-meaningful
5. Debt growing faster than revenue -- convertible overhang expanding
2. Capex massive -- ~$2B FY26 plan, funded by debt and BTC liquidation
3. Single-tenant risk -- CoreWeave 67% of Q1'26 revenue
4. Fresh-start accounting -- GAAP results non-meaningful
5. Debt growing faster than revenue -- convertible overhang expanding
Score: 3/10
Financial Trends score 3/10. Revenue is the lone bright spot, growing on the HPC/AI
colocation buildout but from a small base. Everything else is deeply negative: FCF deteriorating
across all 9 reported quarters, ~$2B capex plan for FY26, 67% single-tenant concentration on
CoreWeave, GAAP results distorted beyond usefulness by fresh-start accounting, and debt growing
faster than revenue. No Daloopa coverage -- all figures sourced from FMP.
No Daloopa coverage. All figures from FMP. FYE December 31.