Research Reports

Metric	Value	Speaker/Context
Q4 Group Revenue	$228M	(CFO)
Q4 Group Revenue YoY Growth	547%	(CFO)
Q4 Core AI Cloud Revenue YoY Growth	830%	(CFO)
Q4 Core AI Cloud Revenue QoQ Growth	63%	(CFO)
Core Business ARR (as of Dec)	$1.2B	(CFO)
Q4 Core AI Cloud Adj. EBITDA Margin	24%	(CFO)
Cash and Cash Equivalents (Year-end)	$3.0B	(CFO)
Q4 Operating Cash Flow	$834M	(CFO)
FY2026 Revenue Guidance	$3.0B - $3.4B	(CFO)
FY2026 ARR Target	$7.0B - $9.0B	(CEO)
FY2026 Adj. EBITDA Margin Guidance	~40%	(CFO)
FY2026 CapEx Plan	$16.0B - $20.0B	(CFO)
Secured Power Capacity (as of Feb)	>2 GW	(CEO)
FY2026 Power Capacity Target	>3 GW	(CEO)

Topic: AI demand signals across customer segments
Key points:
- AI-native startups are scaling from hundreds/thousands of GPUs to tens of thousands, matching frontier model demand from 1-2 years ago.
- Enterprise clients are switching everyday business processes to AI, with growing GPU counts and contract durations.
- Average contract duration for new customers grew 50% in 2025.
Mgmt stance: Bullish — conviction is based on direct business signals showing real revenue traction and scaling demand across all sectors.

Topic: Financing the 2026 CapEx plan of $16-20 billion
Key points:
- Approximately 60% or more of 2026 CapEx needs will be financed by cash flows from favorable long-term agreement terms.
- The company currently has no corporate-level debt or asset-backed financing by choice.
- Plans to move toward a more optimal capital structure in 2026 by introducing debt.
Mgmt stance: Bullish — believes the $16-20 billion CapEx makes sense and can be financed while maintaining a healthy, disciplined balance sheet.

Topic: Capacity build-out acceleration and revenue recognition timing
Key points:
- Deployment acceleration is expected to continue in 2027 and beyond, with larger own projects ramping up then.
- The first tranche for Microsoft was delivered on time in November; remaining tranches will be delivered throughout 2026, with more than half in the second half.
- Both contracted tranches for Meta were delivered on time in early February, now fully in servicing stage.
- Microsoft revenue will ramp over 2026, delivering a full-year revenue starting in 2027.
Mgmt stance: Bullish — high confidence in execution due to built-in safety margin buffers and on-time delivery track record.

Topic: ARR guidance drivers and demand/pricing trends
Key points:
- The 2026 ARR target of $7-9 billion is not dependent on any new mega deals.
- Q4 saw nearly twice as many deals over 12 months in duration compared to Q3, with average selling prices increasing by more than 50%.
- The company is sold out of Hoppers; renewals are seeing pricing nudging up and moving to 12-month or longer terms.
- Q1 pipeline creation trajectory is on track to exceed $4 billion.
Mgmt stance: Bullish — strong pricing, full utilization, and positive deal trends (longer terms, larger sizes) provide confidence.

Topic: Margin trajectory and M&A strategy (Tavily acquisition)
Key points:
- Group adjusted EBITDA margin was 7% in Q4 2025, with guidance to reach 40% in 2026.
- Core AI cloud business margin is significantly higher than the group margin.
- Tavily is an agentic search company connecting AI agents to the web, serving many Fortune 500 customers.
- Capital allocation balances building scale (data centers, GPUs) and building product (organic development and acquisitions like Tavily).
Mgmt stance: Bullish — scaling the core AI business will drive margin expansion; M&A like Tavily deepens platform stickiness and expands capabilities.