0001213900-25-088547
SEC filingWhiteFiber reported a net loss of $8.8 million for Q2 2025, driven by a significant increase in general and administrative expenses, including $6.5 million in share-based compensation, despite a 48% rise in revenue.
For the three months ended June 30, 2025, WhiteFiber reported total revenue of $18.7 million, a 48% increase compared to $12.6 million in the same period of 2024. This growth was primarily fueled by the cloud services segment, which saw revenue increase by 32.8% to $16.6 million, driven by a higher number of deployed GPU servers and the absence of a $1.3 million service credit that had been issued in the prior year. The newly added colocation services segment, resulting from the acquisition of Enovum Data Centers Corp in October 2024, contributed $1.7 million in revenue.
Despite the strong top-line growth, the company reported a significant operating loss of $9.2 million, a sharp decline from an operating income of $2.4 million in Q2 2024. This swing to a loss was almost entirely attributable to a dramatic increase in general and administrative (G&A) expenses, which ballooned to $15.5 million from $1.3 million in the prior-year quarter. Key drivers of this increase included $6.5 million in share-based compensation expenses and $5.7 million in professional and consulting fees. Consequently, the company posted a net loss of $8.8 million, compared to a net income of $1.9 million in Q2 2024.
As of June 30, 2025, WhiteFiber's total assets stood at $386.3 million, a substantial increase from $229.1 million at the end of 2024. This growth was largely driven by a $140.8 million increase in net property, plant, and equipment, reflecting significant investments in its HPC infrastructure, including the $45.0 million acquisition of a building and land in North Carolina. Total liabilities also increased to $78.3 million from $59.4 million, primarily due to a $29.7 million increase in operating lease liabilities associated with new data center leases.
The company's cash and cash equivalents were $16.4 million, up from $11.7 million at year-end 2024. Working capital improved to $15.3 million from $0.7 million. However, the company's operations used $6.8 million in cash during the first six months of 2025, while investing activities consumed $131.0 million, mainly for property and equipment. These outflows were financed by $142.7 million in net transfers from the parent company, Bit Digital. Subsequent to the quarter end, the company's liquidity was significantly bolstered by its initial public offering (IPO), which generated gross proceeds of $159.4 million.
For the six months ended June 30, 2025, net cash used in operating activities was $6.8 million, a significant deterioration from the $0.3 million provided in the same period of 2024. The operating cash outflow was primarily driven by the net loss of $7.4 million, adjusted for $9.0 million in non-cash depreciation and amortization. A key driver of the cash outflow was a $19.0 million decrease in deferred revenue, as prepayments from customers were recognized as revenue upon fulfillment of performance obligations.
Investing activities used $131.0 million in cash, overwhelmingly directed towards purchases of and deposits for property, plant, and equipment, underscoring the company's aggressive expansion of its data center and GPU server capacity. Financing activities provided $142.7 million, entirely from net transfers from the parent company, Bit Digital, to fund these investments. The company's free cash flow is deeply negative, reflecting its heavy investment phase, which is expected to be supported by the proceeds from its recent IPO.
Management's discussion highlights a strategic focus on rapidly expanding its HPC data center platform and cloud services. Key development projects include the MTL-2 and MTL-3 data centers in Montreal and the NC-1 site in North Carolina, with expected completion dates ranging from Q4 2025 to the first half of 2026. The company also entered into a definitive credit agreement with the Royal Bank of Canada for up to $43.8 million to finance its data center business, though the facilities were not yet available for use as of the reporting date.
The company's forward view is heavily dependent on the timely completion of these data center projects and the continued expansion of its cloud services customer base. Management acknowledges risks related to supply chain disruptions for GPUs, significant customer concentration, and the challenges of managing rapid growth. The successful completion of the IPO and the full exercise of the underwriters' over-allotment option provide substantial capital to execute on these strategic priorities.
The company operates in two reportable segments: cloud services and colocation services. The cloud services segment, which provides GPU-based HPC services, generated $16.6 million in revenue for Q2 2025. The colocation services segment, acquired through Enovum, generated $1.7 million. A notable accounting change was the revision of the estimated useful life of cloud service equipment from three to five years, which reduced depreciation and amortization expense by $2.5 million for the quarter.
Share-based compensation was a significant expense item at $6.5 million for the quarter, related to employees' participation in Bit Digital's equity incentive plans. The company also recorded $20.2 million in goodwill and $13.2 million in net intangible assets, primarily from the Enovum acquisition. Deferred revenue decreased substantially as customer prepayments were recognized, with $11.4 million of the beginning balance recognized as revenue during the quarter.