WhiteFiber Logs 61% Q4 Revenue Growth, $865M Colocation Contract and $230M Convertible Notes
WhiteFiber’s Q4 revenue rose 61% year‐over‐year to $23.6 million, driven by cloud services growth and the operational ramp of its MTL-3 facility. The company secured an Nscale 40 MW, 10-year colocation contract worth $865 million and raised $230 million via convertible notes to fund NC-1 campus delivery in 2026.
1. Fourth Quarter Financial Results
WhiteFiber generated $23.6 million in fourth quarter revenue, up 61% year‐over‐year, driven by cloud services revenue of $19.3 million and colocation services of $3.9 million following the MTL-3 facility ramp. Gross margin improved to 61%, adjusted EBITDA reached $5.8 million versus $5.5 million a year ago, and net loss was $1.5 million.
2. Major Colocation Agreements
The company executed a 40 MW, 10-year colocation agreement with Nscale Global Holdings, securing $865 million of contracted revenue over the initial term and anchoring its NC-1 campus. MTL-3 began generating revenue under a Cerebras colocation agreement, and NC-1 initial service is on track for the second quarter of 2026.
3. Fiscal Year 2025 Performance
In 2025, WhiteFiber completed its IPO, raising $183 million in gross proceeds, and invested $268 million in capex to expand AI-focused data center capacity. Full-year adjusted EBITDA was $17.3 million as cloud and colocation platforms scaled to meet growing high-density AI infrastructure demand.
4. Balance Sheet and Liquidity
As of December 31, cash and equivalents totaled $114.4 million with no funded debt and an undrawn credit facility. In January 2026, WhiteFiber issued $230 million of 4.5% convertible senior notes due 2031 with a zero-strike call that raises the effective conversion price to $37 per share, supporting further data center expansion.