Digi Power X Inc (NASDAQ:DGXX, FRA:1NQ0, NEO:DGX) said its NeoCloudz GPU-as-a-Service platform is now live and generating first revenues, marking a milestone in the company’s expansion into AI infrastructure and colocation services.
The initial revenues, recognized in May, came from deployments of NVIDIA B200 and B300 GPUs at the company’s Columbiana, Alabama, facility.
The company reported its first quarter 2026 financial results on Friday, highlighted by a swing to adjusted EBITDA profit of $1.1 million from a loss of $1.3 million a year earlier.
During Q1, Digi Power X generated revenue of $6.8 million, compared with $9.3 million in the prior-year period, reflecting the planned wind-down of legacy operations as the company shifts toward AI compute and colocation revenue streams.
The company reported a net loss of $4.7 million, compared with a loss of $1.6 million in the same quarter last year, primarily due to pre-revenue investment in AI infrastructure, commissioning activities at the Columbiana facility, and higher staffing costs tied to its AI expansion program.
Cash and cash equivalents totaled $73 million at quarter-end, while working capital increased to $67.2 million. Net fixed assets rose 29% year-over-year to $26.4 million, reflecting continued investment in the Alabama site.
The company reported approximately $125 million in cash and cash equivalents and about $15 million in digital assets, while maintaining zero long-term debt.
Digi Power X also highlighted a previously announced 10-year AI colocation agreement valued at $1.1 billion with a leading AI infrastructure company, which it said provides long-term contracted revenue visibility.
The company said it has deployed approximately $45 million in year-to-date capital expenditures toward GPU equipment and data center buildout, principally at Columbiana.
"Q1 marks an inflection point for Digi Power X. Adjusted EBITDA turned positive, even as we deliberately ran down legacy revenue to make room for a much larger AI compute business, and our NeoCloudz GPU cloud is now revenue-generating,” Digi Power X CEO Michel Amar said.
“The balance sheet is the strongest in the company's history - approximately $125 million in cash, $15 million in digital assets, zero long-term debt, and roughly $45 million of capital expenditure already deployed year-to-date at Columbiana - and the company is in active discussions to secure debt financing to fund future data center development to avoid shareholder dilution, providing us with the firepower needed to execute Phase 1 and the operational platform that follows.”
Looking ahead, the company said it is targeting fiscal 2027 revenue of approximately $250 million to $300 million across its AI colocation, GPU cloud, and energy sales operations.
AI colocation revenue is expected to contribute between $80 million and $100 million, while NeoCloudz GPU cloud services are projected to scale toward a year-end annualized run rate of up to $100 million. Energy sales are expected to contribute approximately $12 million.