RUM Group Inc. Reports Record Third Quarter 2026 Results
Quake AI supplied more than 70% of quarterly revenue, while fourth-quarter revenue guidance is below the third-quarter result.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
RUM Group (Nasdaq: RUM) reported third-quarter 2026 revenue of $96.6 million and its first profitable quarter on an adjusted EBITDA basis. Revenue rose 290% year over year and 139% sequentially, exceeding the top of guidance by 3.8%. Quake AI contributed $68.2 million in its first full quarter, with approximately 22,000 NVIDIA graphics processing units operating at approximately 85% utilization.
Despite positive adjusted EBITDA, a non-GAAP earnings measure, net loss attributable to RUM Group widened to $79,916,367 from $16,261,762 a year earlier. Fourth-quarter revenue guidance is $88 million to $94 million. Northern Data ownership increased to approximately 98%; the company expects full ownership in early 2027 through squeeze-out proceedings. RUM Group warned that some of its 250MW capacity target for 2027 may slip beyond that year. A video cost reset began during the quarter, with savings expected through 2027.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointQ3 revenue of $96.6 million rose 290% year over year, 139% sequentially and exceeded guidance’s ceiling by 3.8%.
- Moderate pointAdjusted EBITDA turned positive for the first quarter in company history.
- Moderate pointRumble advertising revenue increased $5.6 million year over year in Q3.
- Moderate pointNorthern Data ownership reached approximately 98% from 85.2% after acquiring an additional 8.26 million shares.
- Minor pointQuake AI revenue of $68.2 million contributed more than 70% of quarterly revenue in its first full quarter.
4 minor points
- Minor pointApproximately 22,000 NVIDIA GPUs operated at approximately 85% utilization during the quarter.
- Minor point. Forward-looking: it has not happened yet and may not happen.Video cost reset began in Q3; the company expects related savings through 2027.
- Minor pointAcquisition-related transaction costs fell to $3,545,525 in Q3 from $5,236,796 a year earlier.
- Minor pointNine-month revenue reached $162,404,284, versus $73,553,866 in the comparable 2025 period.
Negative
- Major pointConvertible notes payable totaled $358,837,827 at September 30, 2026, versus none at December 31, 2025.
- Major pointClass A shares outstanding increased to 276,483,827 at September 30, 2026, from 215,736,576 at December 31, 2025.
- Moderate pointQ3 attributable net loss widened to $79,916,367 from $16,261,762; loss per share increased to $0.19 from $0.06.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Q4 revenue guidance of $88 million to $94 million is below Q3 revenue of $96.6 million.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Some of the 250MW capacity targeted for 2027 may be delayed beyond 2027 due to market conditions.
- Moderate pointNorthern Data full ownership remains pending; squeeze-out proceedings began, with completion expected in early 2027.
- Moderate pointQ3 operating loss widened to $84,640,282 from $28,142,085 a year earlier.
- Moderate pointCash and cash equivalents fell to $134,428,984 at September 30, 2026, from $237,919,453 at December 31, 2025.
9 minor points
- Minor pointOther services revenue fell $2.0 million: subscriptions declined $1.2 million; licensing, hosting fees and other revenues declined $0.8 million.
- Minor pointQ3 cost of services increased 127% year over year to $57,186,000.
- Minor pointQ3 general and administrative expenses increased 147% year over year to $25,926,872.
- Minor pointQ3 research and development expenses increased 73% year over year to $7,723,475.
- Minor pointQ3 sales and marketing expenses increased 51% year over year to $7,690,241.
- Minor pointQ3 amortization and depreciation rose to $85,184,021 from $3,880,492 a year earlier.
- Minor pointQ3 net interest expense was $3,686,718, versus net interest income of $2,896,649 a year earlier.
- Minor pointQ3 share-based compensation increased to $6,358,687 from $5,383,691 a year earlier.
- Minor pointNine-month attributable net loss widened to $189,331,443 from $49,136,885; loss per share increased to $0.58 from $0.19.
News Explained
At September 30, reported liquidity was $142.3 million, including cash and Bitcoin.
RUM Group expects to file automatic WKSI shelf registration statements this week, converting its existing universal shelf and Tether resale registration statement.
A shelf registration authorizes capacity for future registered securities sales; filing it does not itself sell shares.
As of
Details
Market move: RUM +8.11% vs previous close. 3Q26 earnings report
On Nov 11, the day this news came out, the latest delayed price for RUM is 8.11% above the previous close. Our momentum scanner has recorded 16 alerts for this stock so far that day. The latest delayed price is $5.52. Relative volume is exceptionally heavy at 46.6x what this stock usually trades by this time of day.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
Key Figures
- Q3 revenue
- $96.6 million; up 290% YoY
- Q3 2026; also up 139% QoQ and 3.8% above the top end of guidance
- Quake AI revenue
- $68.2 million
- Q3 2026; first full quarter
- Net loss attributable to RUM Group
- $79.9 million
- Q3 2026
- Q4 revenue outlook
- $88 million to $94 million
- Q4 2026
- Total liquidity
- $142.3 million
- As of September 30, 2026
- Northern Data shares acquired
- 8.26 million shares
- Additional shares acquired in Northern Data AG
- Unmonetized capacity
- 250 MW
- Previously targeted for 2027; a portion may be pushed beyond 2027
Previous Earnings Reports
-
Q2 revenue was $40.4 million, and the company set Q3 revenue guidance at $87–$93 million.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
adjusted ebitda financial
non-gaap financial measures financial
convertible notes payable financial
well known seasoned issuer regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
~ Third Quarter Revenue of
~ First Profitable Quarter in the Company’s History on an Adjusted EBITDA Basis ~
~ 22,000 GPUs at Utilization of Approximately
LONGBOAT KEY, Fla., Nov. 11, 2026 (GLOBE NEWSWIRE) -- RUM Group Inc. (Nasdaq: RUM) (“RUM Group” or the “Company”), an AI infrastructure and video company on a mission to unlock the power of human imagination, today announced financial results for the fiscal quarter ended September 30, 2026.
Q3 2026 Key Highlights and Key Items
- Record quarterly revenue of
$96.6 million , up139% QoQ and290% YoY, and3.8% above the top end of our guidance. - Quake AI contributed
$68.2 million , or more than70% of total revenue, in its first full quarter. - The first profitable quarter in the Company’s history on an Adjusted EBITDA basis.
- Quake AI continues to deliver strong performance and demand for its existing fleet of approximately 22,000 NVIDIA GPUs, with utilization of approximately
85% for the quarter. - Acquired an additional 8.26 million shares of Northern Data AG (“Northern Data”), increasing ownership from
85.2% to approximately98% . - Commenced squeeze-out proceedings under the German Stock Corporation Act, expecting to reach
100% ownership of Northern Data in early 2027. - Due to market conditions, a certain portion of our previously disclosed 250MW of unmonetized capacity targeted for 2027 may be pushed out beyond 2027.
- Announced a long-term distribution and content partnership with WWE to become the new home of the weekly premium program WWE Main Event.
- In the third quarter, began a cost reset in video, tied to a refocused strategy. Expecting to start seeing related savings through 2027.
Management Commentary
Chris Pavlovski, CEO of RUM Group, commented, “Q3 was a defining quarter for RUM Group. We delivered record revenue, nearly four times last year’s, and achieved positive Adjusted EBITDA for the first time in our history. Quake AI is now the engine of our business. We have real assets running real AI workloads for real customers and generating real cash. Our 22,000-GPU estate is nearly sold out at
Q3 Financial Summary (Unaudited)
| For the three months ended September 30, | 2026 | 2025 | Variance ($) | Variance (%) | ||||
| Revenues | $ | 96,577,752 | $ | 24,762,445 | $ | 71,815,307 | 290 | % |
| Expenses | ||||||||
| Cost of services (content, hosting and other) | $ | 57,186,000 | $ | 25,219,331 | $ | 31,966,669 | 127 | % |
| General and administrative | 25,926,872 | 10,492,008 | 15,434,864 | 147 | % | |||
| Research and development | 7,723,475 | 4,455,354 | 3,268,121 | 73 | % | |||
| Sales and marketing | 7,690,241 | 5,076,937 | 2,613,304 | 51 | % | |||
Revenues increased by
Cost of services increased by
General and administrative expenses increased by
Research and development expenses increased by
Sales and marketing expenses increased by
As of September 30, 2026, RUM Group had total liquidity of
Q4 2026 Outlook
RUM Group provides revenue outlook for the fourth quarter of 2026 of
SEC Filings
In light of the Company’s recent qualification as a “well known seasoned issuer” under SEC rules, the Company is converting its existing “universal” shelf registration statement, and its resale registration statement for Tether, into automatic WKSI shelf registration statements and expects to file those with the SEC this week.
Conference Call Webcast Information
The Company will host a conference call at 10:00 a.m. Eastern Time today, Wednesday, November 11, 2026, to discuss its quarterly results. Access to the live webcast and replay of the conference call will be available here and on RUM Group’s Investor Relations website at investors.rumble.com under ‘News & Events.’
About RUM Group Inc.
RUM Group Inc. is an AI infrastructure and video company. Its Quake AI business delivers AI compute as a service, operating AI data centers including GPU and CPU compute, storage, and networking at scale. Rumble, RUM Group’s video business and the original tenant of Quake AI, provides creators and enterprises a full suite of video technologies, unlocking reach, scale, and monetization. RUM Group is building the rails of the agentic-first enterprise: the AI compute, cloud infrastructure, and trust layer for the agentic AI future, advancing RUM Group’s mission to maximize the power of human imagination. For more information, visit www.rum.group.
Non-U.S. GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We use the non-GAAP financial measure of Adjusted EBITDA, which is defined as net income (loss) excluding interest income (expense), net, other income (expense), net, provision for income taxes, depreciation and amortization, share-based compensation expense, acquisition-related transaction costs, change in fair value of warrants, change in fair value of digital assets, and change in the fair value of derivative. The Company’s management believes that it is important to consider Adjusted EBITDA, in addition to net income (loss), as it helps identify trends in our business that could otherwise be masked by the effect of the gains and losses that are included in net income (loss) but excluded from Adjusted EBITDA.
Adjusted EBITDA should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. There are several limitations related to the use of Adjusted EBITDA rather than net income (loss), the nearest GAAP equivalent. As a result of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including net income (loss) and our other financial results presented in accordance with GAAP.
Forward-Looking Statements
Certain statements in this press release and the associated conference call constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Statements contained in this press release that are not historical facts are forward-looking statements and include, for example, statements regarding our expectations regarding future results and certain key performance indicators, including our fourth quarter 2026 revenue outlook and views regarding 2027 targeted capacity and annual run rate opportunity, and our ability to meet working capital needs and cash requirements over the next 12 months. Certain of these forward-looking statements can be identified by using words such as “anticipates,” “believes,” “intends,” “estimates,” “targets,” “expects,” “endeavors,” “forecasts,” “could,” “will,” “may,” “future,” “likely,” “on track to deliver,” “continues to,” “looks forward to,” “is primed to,” “plans,” “projects,” “assumes,” “should” or other similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties, and our actual results could differ materially from future results expressed or implied in these forward-looking statements. The forward-looking statements included in this release are based on our current beliefs and expectations of our management as of the date of this release. These statements are not guarantees or indicative of future performance. Important assumptions and other important factors that could cause actual results to differ materially from those forward-looking statements include risks relating to the Northern Data business, including with respect to our ability to successfully integrate the operations of the Company and Northern Data and achieve the anticipated strategic and financial benefits of the transaction; our performance under our recently announced commercial agreement with an unaffiliated U.S.-based third-party cloud customer related to our Maysville, GA site will require substantial capital investment to build and develop the data center facilities, and our inability to obtain sufficient financing on acceptable terms could materially and adversely affect our business, financial condition and results of operations; our development and construction of new data center facilities (including our Maysville, GA site) involve significant risks, including increasing political and regulatory scrutiny of data centers (including at the state, local and municipal levels), increasing public and community opposition to data center development and exposure to a highly evolving regulatory landscape, which could delay, increase the cost of, or prevent the completion of our planned projects, including under our existing customer agreements, and subject us to potential legal liabilities; our substantial indebtedness following the Northern Data business combination, and additional indebtedness we expect to incur in connection with our AI infrastructure and data center business, could adversely affect our financial condition and limit our operational flexibility; our ability to grow and manage future growth profitably over time, maintain relationships with customers, compete within our industry and retain key employees; the possibility that we may be adversely impacted by economic, business, and/or competitive factors; our limited operating history, including with respect to our cloud and AI infrastructure business, makes it difficult to evaluate our business and prospects; operating costs, customer loss or business disruption being greater than expected following the Northern Data business combination; the effects of the business combination, including the combined company’s future financial position, operating results and strategy; risks that the growth strategy of the combined business, including our customer agreements, may require a significant amount of debt financing, which may not be available on favorable terms, if at all, and risks relating to the ability of the combined business to service such debt obligations; we may fail to maintain adequate operational and financial resources or raise additional capital or generate sufficient cash flows; risks related to disruption of management time from ongoing business operations of each of the Company and Northern Data due to the business combination; unanticipated litigation, claims or assessments, as well as the outcome or impact of any current or pending litigation, claims or assessments; potential security violations to the combined company’s, the Company’s and Northern Data’s information technology systems, any of which could be enhanced or facilitated by artificial intelligence; changes in legislation or governmental regulations affecting the combined company, the Company or Northern Data, including our data center projects, and international, national or local economic, social or political conditions or other factors such as currency exchange rates, inflation rates, recessionary or expansive trends, taxes and regulations and laws that could adversely affect the combined company, the Company, Northern Data or their respective clients; with respect to our video business, we may not grow or maintain our active user base, and may not be able to achieve or maintain profitability; with respect to our video business, risks relating to our ability to attract new advertisers, or the potential loss of existing advertisers or the reduction of or failure by existing advertisers to maintain or increase their advertising budgets; our cloud business may not achieve the intended results, which could adversely affect our financial condition and results of operations; negative media campaigns may adversely impact our financial performance, results of operations, and relationships with our business partners, including content creators and advertisers; spam activities, including inauthentic and fraudulent user activity, if undetected, may contribute, from time to time, to some amount of overstatement of our performance indicators; the operation of our non-custodial crypto wallet exposes us to significant regulatory, operational, security, and market risks that could adversely affect our business, financial condition, results of operations, and reputation; we collect, store, and process large amounts of user video content and personal information of our users and subscribers. If our security measures are breached, our sites and applications may be perceived as not being secure, traffic and advertisers may curtail or stop viewing our content or using our services, our business and operating results could be harmed, and we could face governmental investigations and legal claims from users and subscribers; we may fail to comply with applicable privacy laws, subjecting us to liability and damages; our cloud services business operates in a highly regulated environment, subject to a complex and rapidly evolving array of domestic and international laws, regulations, and industry standards governing data privacy, cybersecurity, data localization, cross-border data transfers, and emerging technologies such as artificial intelligence; we are subject to cybersecurity risks and interruptions or failures in our information technology systems, any of which could be enhanced or facilitated by artificial intelligence, and as we grow and gain recognition, we will likely need to expend additional resources to enhance our protection from such risks. Notwithstanding our efforts, a cyber incident could occur and result in information theft, data corruption, operational disruption and/or financial loss; we may be found to have infringed on the intellectual property of others, which could expose us to substantial losses or restrict our operations; we may face liability for hosting a variety of tortious or unlawful materials uploaded by third parties, notwithstanding the liability protections of Section 230 of the Communications Decency Act of 1996; user-generated content could affect the quality of our services and deter existing or potential users from using our platforms, and we may face negative publicity for removing, or declining to remove, certain content, regardless of whether such content violates any law; paid endorsements by our content creators may expose us to regulatory risk, liability, and compliance costs, and, as a result, may adversely affect our business, financial condition and results of operations; our traffic growth, engagement, and monetization depend upon effective operation within and compatibility with operating systems, networks, devices, web browsers and standards, including mobile operating systems, networks, and standards that we do not control; our video business depends on continued and unimpeded access to our content and services on the internet. If we or those who engage with our content experience disruptions in internet service, or if internet service providers are able to block, degrade or charge for access to our content and services, we could incur additional expenses and the loss of traffic and advertisers; we face significant market competition, and if we are unable to compete effectively with our competitors for traffic and advertising spend, our business and operating results could be harmed; we rely on data from third parties to calculate certain of our performance metrics and real or perceived inaccuracies in such metrics may harm our reputation and negatively affect our business; changes to our existing content and services could fail to attract traffic and advertisers or fail to generate revenue; failure to attract new advertisers, the loss of existing advertisers, or the reduction of or failure by existing advertisers to maintain or increase their advertising budgets would adversely affect our business; we depend on third-party vendors, including internet service providers, advertising networks, and data centers, to provide core services; hosting and delivery costs may increase unexpectedly; we have offered and intend to continue to offer incentives, including economic incentives, to content creators to join our platform, and these arrangements may involve fixed payment obligations that are not contingent on actual revenue or performance metrics generated by the applicable content creator but rather are based on our modeled financial projections for that creator, which if not satisfied may adversely impact our financial performance, results of operations and liquidity; we may be unable to develop or maintain effective internal controls; changes in tax rates, changes in tax treatment of companies engaged in e-commerce, the adoption of new tax legislation, or exposure to additional tax liabilities may adversely impact our financial results; compliance obligations imposed by new privacy laws, laws regulating online video sharing platforms, other online platforms, and online speech in certain jurisdictions in which we operate, or industry practices may adversely affect our business; and those additional risks, uncertainties and factors described in more detail under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, and in our other filings with the Securities and Exchange Commission. We do not intend, and, except as required by law, we undertake no obligation, to update any of our forward-looking statements after the issuance of this release to reflect any future events or circumstances. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.
RUM Group Inc. on Social Media
Investors and others should note that we announce material financial and operational information to our investors using our investor relations website (investors.rumble.com), press releases, SEC filings and public conference calls and webcasts. We also intend to use certain social media accounts as a means of disclosing information about us and our services and to comply with our disclosure obligations under Regulation FD: the @rumblevideo X account (x.com/rumblevideo), the @rumble TRUTH Social account (truthsocial.com/@rumble), the @chrispavlovski X account (x.com/chrispavlovski), and the @chris TRUTH Social account (truthsocial.com/@chris), which Chris Pavlovski, our Chairman and Chief Executive Officer, also uses as a means for personal communications and observations. The information we post through these social media channels may be deemed material. Accordingly, investors should monitor these social media channels in addition to following our press releases, SEC filings and public conference calls and webcasts. The social media channels that we intend to use as a means of disclosing the information described above may be updated from time to time, as listed on our investor relations website.
For investor inquiries, please contact:
Shannon Devine
MZ Group, MZ North America
203-741-8811
investors@rumble.com
Source: RUM Group Inc.
| Condensed Consolidated Interim Statements of Operations (Unaudited) | ||||||||||||
| Three months ended September 30 | Nine months ended September 30 | |||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| Revenues | $ | 96,577,752 | $ | 24,762,445 | $ | 162,404,284 | $ | 73,553,866 | ||||
| Expenses | ||||||||||||
| Cost of services (content, hosting and other) | $ | 57,186,000 | $ | 25,219,331 | $ | 114,790,250 | $ | 81,797,812 | ||||
| General and administrative | 25,926,872 | 10,492,008 | 52,650,983 | 38,792,062 | ||||||||
| Research and development | 7,723,475 | 4,455,354 | 20,258,664 | 14,070,349 | ||||||||
| Sales and marketing | 7,690,241 | 5,076,937 | 26,602,057 | 16,607,389 | ||||||||
| Acquisition-related transaction costs | 3,545,525 | 5,236,796 | 36,707,170 | 7,624,901 | ||||||||
| Amortization and depreciation | 85,184,021 | 3,880,492 | 105,451,787 | 10,775,361 | ||||||||
| Change in fair value of digital assets | (6,038,100 | ) | (1,456,388 | ) | 463,440 | (4,949,413 | ) | |||||
| Total expenses | 181,218,034 | 52,904,530 | 356,924,351 | 164,718,461 | ||||||||
| Loss from operations | (84,640,282 | ) | (28,142,085 | ) | (194,520,067 | ) | (91,164,595 | ) | ||||
| Interest income (expense), net | (3,686,718 | ) | 2,896,649 | (1,058,653 | ) | 7,979,880 | ||||||
| Other income (expense) | (1,543,669 | ) | 46,901 | (6,898,285 | ) | (476 | ) | |||||
| Changes in fair value of warrant liability | 603,453 | 8,936,773 | 1,931,381 | 24,379,616 | ||||||||
| Changes in fair value of derivative | (1,587,289 | ) | - | (1,303,298 | ) | 9,700,000 | ||||||
| Loss before income taxes | (90,854,505 | ) | (16,261,762 | ) | (201,848,922 | ) | (49,105,575 | ) | ||||
| Income tax expense | (1,844,628 | ) | - | (2,051,768 | ) | (31,310 | ) | |||||
| Deferred tax benefit | 2,844,687 | - | 2,840,689 | - | ||||||||
| Net loss | (89,854,446 | ) | (16,261,762 | ) | (201,060,001 | ) | (49,136,885 | ) | ||||
| Net loss attributable to non-controlling interest | (9,938,079 | ) | - | (11,728,558 | ) | - | ||||||
| Net loss attributable to RUM Group Inc. | $ | (79,916,367 | ) | $ | (16,261,762 | ) | $ | (189,331,443 | ) | $ | (49,136,885 | ) |
| Loss per share – basic and diluted | $ | (0.19 | ) | $ | (0.06 | ) | $ | (0.58 | ) | $ | (0.19 | ) |
| Weighted‑average number of common shares | ||||||||||||
| used in computing net loss per share‑basic and diluted | 424,787,465 | 260,529,688 | 323,852,948 | 252,722,453 | ||||||||
| Share-based compensation expense included in expenses: | ||||||||||||
| Cost of services (content, hosting, and other) | $ | 1,113,422 | $ | 971,476 | $ | 4,261,326 | $ | 3,534,489 | ||||
| General and administrative | 3,591,268 | 3,020,892 | 9,177,133 | 12,256,088 | ||||||||
| Research and development | 948,308 | 909,444 | 3,157,662 | 2,450,885 | ||||||||
| Sales and marketing | 705,689 | 481,879 | 2,126,899 | 1,206,326 | ||||||||
| Total share-based compensation expense | $ | 6,358,687 | $ | 5,383,691 | $ | 18,723,020 | $ | 19,447,788 | ||||
| Condensed Consolidated Interim Balance Sheets (Unaudited) | ||||||
| September 30, 2026 | December 31, 2025 | |||||
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 134,428,984 | $ | 237,919,453 | ||
| Accounts receivable and other, net | 62,157,309 | 11,859,231 | ||||
| Contingent consideration receivable | 23,827,868 | - | ||||
| Prepaid expenses and other | 130,750,386 | 14,767,472 | ||||
| 351,164,547 | 264,546,156 | |||||
| Investment | 6,654,186 | - | ||||
| Other non-current assets | 21,643,306 | 1,123,781 | ||||
| Digital assets | 11,091,139 | 18,450,362 | ||||
| Property and equipment, net | 899,704,119 | 16,178,941 | ||||
| Right‑of‑use assets, net | 134,730,196 | 1,868,458 | ||||
| Intangible assets, net | 161,384,758 | 24,023,709 | ||||
| Goodwill | 413,780,068 | 10,655,391 | ||||
| $ | 2,000,152,319 | $ | 336,846,798 | |||
| Liabilities and Shareholders' Equity | ||||||
| Current liabilities | ||||||
| Accounts payable and accrued liabilities | $ | 105,949,995 | $ | 27,875,120 | ||
| Deferred revenue | 23,493,004 | 16,105,587 | ||||
| Lease liabilities | 41,556,992 | 1,281,444 | ||||
| 170,999,991 | 45,262,151 | |||||
| Convertible notes payable | 358,837,827 | - | ||||
| Lease liabilities, net of current portion | 93,100,051 | 633,128 | ||||
| Deferred tax liability | 20,507,340 | - | ||||
| Warrant liability | 13,677,946 | 15,609,327 | ||||
| Other liability | 508,171 | 500,000 | ||||
| 657,631,326 | 62,004,606 | |||||
| Commitments and contingencies | ||||||
| Shareholders' equity | ||||||
| Preferred shares | ||||||
| ( | - | - | ||||
| Common shares | ||||||
| ( | 779,514 | 773,439 | ||||
| Accumulated deficit | (754,727,747 | ) | (565,396,304 | ) | ||
| Additional paid‑in capital | 2,105,659,933 | 839,465,057 | ||||
| Accumulated other comprehensive loss | (19,675,113 | ) | - | |||
| Non-controlling interest | 10,484,406 | - | ||||
| 1,342,520,993 | 274,842,192 | |||||
| $ | 2,000,152,319 | $ | 336,846,798 | |||
| Condensed Consolidated Interim Statements of Cash Flows (Unaudited) | ||||||
| For the nine months ended September 30, | 2026 | 2025 | ||||
| Cash flows provided by (used in) | ||||||
| Operating activities | ||||||
| Net loss for the period | $ | (201,060,001 | ) | $ | (49,136,885 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||
| Amortization and depreciation | 105,451,787 | 10,775,361 | ||||
| Share-based compensation | 18,723,020 | 19,447,788 | ||||
| Provision for credit losses | 1,335,730 | - | ||||
| Net trade and barter revenue and expense | (4,722,263 | ) | 1,310,795 | |||
| Non-cash lease expense | 14,401,555 | 864,361 | ||||
| Change in fair value of warrants | (1,931,381 | ) | (24,379,616 | ) | ||
| Change in fair value of digital assets | 463,440 | (4,949,413 | ) | |||
| Change in fair value of derivative | 1,303,298 | (9,700,000 | ) | |||
| Unrealized foreign exchange gain | (5,069,741 | ) | - | |||
| Other | 264,984 | 7,552 | ||||
| Changes in operating assets and liabilities: | ||||||
| Accounts receivable | (13,213,688 | ) | (2,797,197 | ) | ||
| Prepaid expenses and other | (795,201 | ) | 6,642,470 | |||
| Accounts payable and accrued liabilities | (6,890,592 | ) | 10,208,952 | |||
| Deferred revenue | 1,532,504 | 1,517,588 | ||||
| Income tax receivable | (10,516,566 | ) | - | |||
| Deferred tax liability | (4,282,724 | ) | - | |||
| Operating lease liabilities | (8,822,921 | ) | (815,788 | ) | ||
| Net cash used in operating activities | (113,828,760 | ) | (41,004,032 | ) | ||
Investing activities | ||||||
| Purchase of property and equipment | (75,545,353 | ) | (1,774,932 | ) | ||
| Purchase of intangible assets | (4,211,621 | ) | (2,019,595 | ) | ||
| Sale (purchase) of digital assets | 15,284,386 | (19,100,000 | ) | |||
| Acquisition of Northern Data AG, net of cash acquired | 51,036,335 | - | ||||
| Net cash used in investing activities | (13,436,253 | ) | (22,894,527 | ) | ||
Financing activities | ||||||
| Proceeds from the issuance of pre-funded warrants in connection with equity commitment agreement | 36,242,537 | - | ||||
| Taxes paid from net share settlement for share-based compensation | (1,628,105 | ) | (3,260,193 | ) | ||
| Proceeds from exercise of warrants and stock options | 3,734,490 | 2,197,419 | ||||
| Proceeds from issuance of Class A Common Stock under ESPP | 81,064 | 129,374 | ||||
| Proceeds from issuance of Class A Common Stock | - | 775,000,000 | ||||
| Repurchase of Class A Common Stock | - | (525,000,000 | ) | |||
| Share issuance costs | (11,504,125 | ) | (29,429,791 | ) | ||
| Net cash provided by financing activities | 26,925,861 | 219,636,809 | ||||
| Effect of exchange rates on cash and cash equivalents | (3,151,317 | ) | - | |||
| (Decrease) increase in cash and cash equivalents during the period | (103,490,469 | ) | 155,738,250 | |||
| Cash and cash equivalents, beginning of period | 237,919,453 | 114,018,900 | ||||
| Cashand cash equivalents, end of period | $ | 134,428,984 | $ | 269,757,150 | ||
| Supplemental cash flow information: | ||||||
| Cash paid for income taxes | $ | 3,436,388 | $ | 33,755 | ||
| Cash paid for interest | 5,636,828 | - | ||||
| Cash paid for lease liabilities | 12,877,408 | 805,308 | ||||
| Non-cash investing and financing activities: | ||||||
| Non-cash consideration related to the acquisition of Northern Data AG | 1,515,556,856 | - | ||||
| Property and equipment in accounts payable and accrued liabilities | 1,273,629 | 2,112,958 | ||||
| Recognition of operating right-of-use assets in exchange of operating lease liabilities, net of derecognition of terminated leases | 776,340 | 1,119,786 | ||||
| Share-based compensation capitalized related to intangible assets | 373,343 | 398,323 | ||||
| Reconciliation of GAAP to Non-GAAP Financial Measures Reconciliation of Adjusted EBITDA (Unaudited) | ||||||||||||
| Three months ended September 30, | Nine months ended September 30, | |||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| Net loss | $ | (89,854,446 | ) | $ | (16,261,762 | ) | $ | (201,060,001 | ) | $ | (49,136,885 | ) |
| Adjustments: | ||||||||||||
| Amortization and depreciation | 85,184,021 | 3,880,492 | 105,451,787 | 10,775,361 | ||||||||
| Share-based compensation expense | 6,358,687 | 5,383,691 | 18,723,020 | 19,447,788 | ||||||||
| Interest (income) expense, net | 3,686,718 | (2,896,649 | ) | 1,058,653 | (7,979,880 | ) | ||||||
| Other (income) expense | 1,543,669 | (46,901 | ) | 6,898,285 | 476 | |||||||
| Income tax expense | 1,844,628 | - | 2,051,768 | 31,310 | ||||||||
| Deferred tax benefit | (2,844,687 | ) | - | (2,840,689 | ) | - | ||||||
| Change in fair value of warrants liability | (603,453 | ) | (8,936,773 | ) | (1,931,381 | ) | (24,379,616 | ) | ||||
| Change in fair value of digital assets | (6,038,100 | ) | (1,456,388 | ) | 463,440 | (4,949,413 | ) | |||||
| Change in fair value of derivative | 1,587,289 | - | 1,303,298 | (9,700,000 | ) | |||||||
| Acquisition-related transaction costs | 3,545,525 | 5,236,796 | 36,707,170 | 7,624,901 | ||||||||
| Adjusted EBITDA | $ | 4,409,851 | $ | (15,097,494 | ) | $ | (33,174,650 | ) | $ | (58,265,958 | ) | |
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.