Full Transcript: Axe Compute Q2 2026 Earnings Call

Axe Compute (NASDAQ: AGPU ) held its second-quarter earnings conference call on Monday. Below is the complete transcript from the call. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.

2 million, marking its first full quarter of compute revenue, with significant growth from $35,000 in Q1. The company has signed contracts worth over $3 billion, with an annualized run rate expected to reach $696 million upon full deployment. Axe Compute is expanding its infrastructure with a 2K B300 cluster build, set to go live soon, and has announced a 55-megawatt expansion with Duos Technologies. The company received a $317 million prepayment for its cluster expansion and plans to finance projects through customer down payments and project financing.

9 million, primarily due to non-cash losses on digital asset holdings. 9 billion pipeline of active opportunities. Operational highlights include a focus on expanding data center capabilities and hiring additional staff to support deployment and operations. Full Transcript Erin McMahon, CMO and Head of Investor Relations Good morning and welcome to Axe Compute's Q2 2026 earnings call and business update.

I'm Erin McMahon, CMO and head of investor relations at Axe Compute. Joining me today are Christopher Miglino, Chief Executive Officer; Jeremy Yockey-Witter, Chief Financial Officer; and Kyle Okamoto, President. Today we're hosting the call live from Columbus, Georgia, home to a data center that is the site of our 2K B300 cluster build we announced back in April that is set to go live in the coming weeks. Before we begin, today's remarks include forward-looking statements as referenced on slide 2.

This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding signed contracted value, anticipated customer prepayments, deployment timing, annualized run rate, expected margins and profitability, financing structures, potential future contract signing, and future performance. S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this presentation.

Axe Compute undertakes no obligations to update them except as required by law. Financial Figures. Quarterly financial figures presented are as reported in the Form 10-Q filed on August 14, 2026. Annualized run rate means annualized monthly recurring revenue upon full deployment of signed contracts.

Total contract value, or TCV, is an operating metric representing the aggregate estimated contractual spend under signed customer contracts. S. GAAP. Signed contracts are subject to deployment, customer acceptance, and other risks described in our SEC filings.

Illustrative Steady State Economics are models derived, blended across signed billed contracts, and do not constitute guidance. Non-GAAP Measures. This presentation includes adjusted EBITDA, which is a non-GAAP financial measure. The Company defines adjusted EBITDA as net income (loss) adjusted to exclude interest expense (income), income tax expense (benefit), depreciation and amortization, stock-based compensation expense, and fair value adjustments on digital assets.

S. GAAP and may not be comparable to similarly titled measures used by other companies. Management believes adjusted EBITDA is useful to investors because it provides a supplemental measure of the Company's core operating performance by excluding the effects of capital structure decisions—such as interest expense and fair value changes related to digital asset holdings—noncash charges such as depreciation, amortization, and stock-based compensation, and tax impacts that can vary significantly between periods across companies.

Management uses adjusted EBITDA to evaluate the Company's performance, compare performance across periods, and assist in the allocation of resources. S. GAAP. S.

GAAP financial measures is included in this presentation. S. GAAP measure may not be available without unreasonable effort due to an inherent difficulty in forecasting and quantifying certain amounts including, but not limited to, fair value adjustments on digital asset holdings, stock-based compensation expense, and other noncash or nonrecurring items, the timing and magnitude of which may be significant. No Offer or Solicitation.

This presentation is for informational purposes only and does not constitute an offer to sell or solicitation of an offer to buy any securities of Axe Compute or any of its affiliates. No securities are being offered or sold in any jurisdiction where such offer or sale would be unlawful. Third-Party Information. Certain information contained in this presentation has been obtained from third-party sources.

While Axe Compute believes such information to be reliable, it has not independently verified the accuracy or completeness of such information and makes no representation or warranty, express or implied, as to its accuracy or completeness. com. With that, I'll hand it to our CEO, Christopher Miglino. Christopher Miglino — Chief Executive Officer Good morning, everybody.

I'm Chris Miglino, and I'm the CEO of Axe Compute. We're here in Georgia. I'm excited to be here. We're getting ready to launch a very large cluster, and for those that are new to the Axe Compute story, Axe Compute is an AI infrastructure platform with two growth engines.

Build is our primary engine, which is part of what you're looking at here. We design, deploy, own, and operate dedicated GPU clusters for enterprises. Then we have Access. Access is the complementary, recurring stream — fast access to GPU capacity across many different locations across the world.

Think of it like a top of the funnel where we meet companies that are interested in GPUs immediately, and then as they grow, we can help them — we can grow with them. What the market sees for Axe is a new AI infrastructure company. But what the market doesn't realize is that we've been in this business for the past couple of years, and our sales team has been selling to the off-takers for that entire time. And our supply team has been talking to data centers and engaging with power owners that entire time as well.

So while it seems like we're a new kid on the block that has all of a sudden signed all of these transactions, this has been an overnight success that's been in the making for the last two years. Before we get into the quarter, I want to spend a couple of minutes on the market we're operating in, because it's the single most important piece of context for everything that Jeremy and Kyle will be walking through later. It's no surprise that we're in the early innings of a generational build-out of compute. You can't turn on the news without seeing some kind of news about data centers — the growth of data centers, the amount of money that's being attributed to data centers.

7 trillion, which I think is a low number even at this point. 2 trillion is attributed specifically to AI-capable capacity. So I want to be clear what that second number means. It's not a forecast of AI software revenue for, like, OpenAI or Anthropic, but AI spending on infrastructure.

So it's the capital that's required for the physical — the power, the shells, the racks, the GPUs — and that's the market that we're in. That's the market that Axe Compute is in. The second thing that we want to point out is the shape of the demand, not just the size. Customers are not asking for generic cloud — they're asking for dedicated capacity.

They don't want to just be in a shared location with a lot of people. They want to own a cluster like the one that you see behind me, and they want to own that and be able to engage with it on their own without anybody else interacting with them. They'll do that on a long-term basis as well. So that will enable us to sign five- to ten-year transactions.

And they want a partner that can help them grow into that space. They want a partner that can help them acquire all the equipment, plan the network, design the network, deploy the network, and work with the appropriate data centers to get the right power and to get the right building ready for their compute needs. So that's where our Build program comes in, and we help these off-takers do exactly that. We help them do everything that's necessary to get live inside the data center.

And then we partner with the right data centers to execute. Not all data centers are made alike, and we do what we can to make sure that we have the right partners that are helping our clients. So when you hear the numbers we're about to walk through — more than $3 billion in signed contracts, $696 million in expected annual run rate when we're at full deployment, and more than half a billion dollars in customer prepayments — I encourage you to read them against the backdrop of massive demand. We're not creating demand; we're converting market where demand structurally exceeds the supply that's out there.

So we're signing all these transactions on a take-or-pay basis with multi-year contracts. With that context, let's turn to what happened this quarter. We had an amazing quarter. If we could accomplish what we did this quarter every quarter, everybody on this phone call would be beyond ecstatic.

As you can see, we're getting ready to launch the first cluster that we talked about a long time ago. This was the first deal that we told everybody about. This is getting ready to go live, and it's a beautiful piece of art that's there. Many, many hours of work have gone into bringing this to fruition.

But, you know, we've really done an amazing job at signing around $3 billion — close to $3 billion — worth of additional agreements, when we had anticipated that for the quarter we would be happy to sign an additional $1 billion worth of transactions. So it far exceeded what we had projected. It really did. We really thought that it would be a little bit of a slower ramp.

But I'll let you know — I'm going to let Kyle talk a little bit more about the pipeline in a little bit. But you'll see that this momentum has not stopped at all. So now we went from signing all these transactions, doing all these deals, getting all of the ARR set up for next year — so, like, next year when these are all deployed — again, $696 million in ARR once they get deployed. Now we're in dual mode.

We're in the execution mode. The team is working on putting these together and getting them up and running and managing them, making sure that we have all of the appropriate staff in place to manage these for our clients. So we're really excited about where we start today from the momentum that we had this quarter. One question we get all the time basically is: how are our margins on these Build projects?

So we wanted to give you a slide that would give investors some insight into what that looks like. These are forward-looking, but this is our modeling. It gives the best shot as to where we believe them to be, and we think investors can take a look at these and can help utilize them to help them model going forward. As you can see, the gross margins are between 28% and 44%, and the EBITDA margins are 62% to 76%.

So if you apply those against the $3 billion in announced transactions, you can see that the economics that we're going to be experiencing in '27 are significant. The only other question we get more than the question about the margins on these deals that we're doing is: how are we going to fund these projects? So I wanted to walk you through a little bit about how these projects are being funded and how we're working to fund these projects. You can see that each project has a down payment from the customer.

The customer puts anywhere from 20% to 45% of the project cost down up front. What we then do is we have the ability to go out and seek project financing for that revenue stream. Now, when you have an S&P credit client and that client is — we're looking for financing for that revenue stream — there are a lot of lenders that are willing to lend against that, especially those lenders that understand the GPU market, which, as you can see from the news, there are a lot of them. There are a lot of them that have come up, a lot of them that are executing, a lot of them that are investing into the space.

So our goal is to get that prepayment, find the project financing for each project, similar to what happened here, off balance sheet — we don't need to raise capital against it — and then execute and deploy the cluster itself. We think that when people understand that we can get these projects financed in this fashion, that's very favorable for the public company. And in the instances where we are looking to invest equity into these transactions, we could do so at a point when the stock is at a price where we deem it to be a good location to actually do a transaction if we wanted to.

Otherwise, we can sit back and do project financings against each of these projects, leveraging the good credit of the clients that are building these things with us. We have two really big announcements today. The first is that we received the first prepayment of $317 million plus for our cluster that we're expanding. And then we signed an agreement for an additional 55 megawatts over the course of a number of different locations with Duos Technologies.

So we're excited about both of these things. I think these will give you an idea of where the business is going. And in order to talk a little bit more about our partnership with Duos, we've asked the CEO of Duos, Doug Rucker, to be with us here today so that we can give you a little bit of an insight of what our expansion will look like into that 55 megawatts. One of the most important things in building data centers is having a good partner.

And I'm here with Doug Recker from Duos Technologies, who has been a fantastic partner for us. Doug, thank you for having me. Doug Recker, CEO of Duos Technologies Thanks for being here. And I have to say that I'm very glad that we are doing business with Duos.

You guys have literally been an amazing partner in this process, so I wanted to thank you for that. I think today we're excited to announce that we've signed a deal to do an additional 55 megawatts over multiple locations with Duos. So we appreciate that support. Great partnership.

We're looking forward to it. Christopher Miglino — Chief Executive Officer I mean, if this location where we are today is any indication of how everything else is going to go, I feel very confident in your hands that you will get everything done. So I appreciate your support. I mean, what you've accomplished here since we got going is just incredible.

Doug Recker, CEO of Duos Technologies It's incredible what we've done in, what, 45 days. If you could literally take the camera and walk around the facility, it's amazing how fast we've implemented this project. And it's kind of an assessment of how we work as a company. Right.

We'll tell you we can do it, and we'll deliver. Now, we're not going to tell you we're going to do 100 megs in three weeks, right? We're not going to say that. But as you can see from our product, this is all under 45 days.

Christopher Miglino — Chief Executive Officer Yeah. So it's important — I think a lot of people that watch this are very interested in the data center space, but they don't understand all the components that are involved in this process. Right. So there's the data center owner, which is you guys, and you're also the operator of the building, and then there's all this stuff that we have to get in here.

And that's our role — to get this stuff in here, get it up and running, manage it, manage the install, manage the process. But tell the people that are watching how your business works — what you guys do — and how that results for you guys, because you guys are also a public company. It's D U O T, Duos Technologies. So explain how that works so that everybody understands.

Doug Recker, CEO of Duos Technologies Sure. So what's great about our business is we've actually been in the business over 30 years. Myself, I've built many data centers — large data centers — and even the modular approach. Right.

So what we're doing now in our partnership with Axe, and what our business model is, is basically deploying modular.