Sharon AI Reports Second Quarter 2026 Results
Rhea-AI Summary
Sharon AI (NASDAQ: SHAZ) reported second quarter 2026 revenue of $1.9 million, up 412% from 2Q 2025, with net loss of $(430.4) million, largely driven by $400.4 million of non-cash fair value loss on convertible notes. Adjusted EBITDA turned positive to $0.6 million from $(1.7) million a year earlier.
Cash and cash equivalents reached $1.9 billion at June 30, 2026. Total contract value was $8.8 billion as of August 6, 2026, supported by a $4.9 billion six-year NVIDIA compute collaboration and multiple five-year take-or-pay contracts. Secured AI Factory capacity is expected to reach 212MW and over 64,000 NVIDIA GPUs by mid-2027.
Positive
- Revenue $1.9m in 2Q 2026, up 412% vs 2Q 2025
- Adjusted EBITDA $0.6m in 2Q 2026 vs $(1.7)m in 2Q 2025
- Cash and cash equivalents $1.9bn at June 30, 2026, up from $71.1m
- Total contract value $8.8bn as of August 6, 2026
- $4.9bn six-year compute collaboration with NVIDIA for up to 40,000 GB300 GPUs
- $950m and $1.32bn five-year take-or-pay contracts with global technology and AI customers
- Capacity expected to reach 212MW and 64,000+ NVIDIA GPUs by mid 2027
- Equity and convertible financings of $1.6bn private placement and $350m convertible notes completed
Negative
- Net loss $(430.4)m in 2Q 2026 vs $(2.6)m in 2Q 2025
- Non-cash fair value loss $400.4m on convertible notes in 2Q 2026
- Loss from operations $(24.8)m in 2Q 2026 vs $(2.6)m in 2Q 2025
- Convertible notes liability $1.01bn current at June 30, 2026
- Net cash used in investing activities $(263.3)m for six months ended June 30, 2026
- Shares outstanding Class A increased to 35.7m from 11.8m, indicating significant dilution
News Explained
The report confirms a much larger cash base, but financing also expanded Class A shares, reducing existing holders’ ownership percentage.
The second-quarter report is a completed financial reporting disclosure for
The reported Class A share count rose from
A pre-funded warrant is sold near the full share price with a nominal exercise price and converts to shares when exercised; the release records
The
The TCV note defines the
Sources and calculations
- Sharon AI Reports Second Quarter 2026 Results (2026-08-06)
- Dilution (undated)
- Pre-funded warrant (undated)
- Sharon AI fundamentals, first quarter 2026 (2026-03-31)
- Cash and equivalents vs quarterly operating cash outflow, in days of cash use $164,288,288 / ($7,449,588 / 90) = [object Object]
Market Reaction – SHAZ
Following this news, SHAZ has gained 0.17%, reflecting a mild positive market reaction. Our momentum scanner has triggered 7 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $52.24.
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Total contract value reaches
Six-year strategic NVIDIA compute collaboration
Secured AI Factory capacity increases by 80MW to 212MW
All amounts are in
Second Quarter 2026 Highlights
- Customer Momentum
$4.9b n$950m Asia-pacific presence
- Capacity and Platform
- Expanded VAST Data partnership: 600PB VAST AI Operating System deployed as the foundational data layer, sized to support ~100,000 GPUs
- Balance Sheet and Capital
- Well funded for the near-term build-out following the
$1.6b n$350m $74m
- Well funded for the near-term build-out following the
- Leadership and Governance
- Appointed Andrew Penn AO as Non-Executive Chairman
Second Quarter 2026 Financial Results
- Revenue:
$1.9m 412% from 2Q 2025 - Net income (loss):
$(430.4m )$423.8m $400.4m $(2.6m ) - Adjusted EBITDA1:
$0.6m $(1.7m ) - Cash and cash equivalents:
$1.9b n - Total Contract Value ("TCV")2:
$8.8b n
1Adjusted EBITDA is a non-GAAP financial measure. See "Non-GAAP Financial Measures" and reconciliation tables. |
2TCV represents the aggregate estimated contractual committed spend under customer contracts in effect as of the measurement date, for the contractual term. TCV is an operating metric and does not represent revenue recognized in accordance with |
Management Commentary
"In the second quarter, we established the commercial, infrastructure, and capital foundations for Sharon AI's next phase of growth at scale," said James Manning, Co-Founder and Chief Executive Officer of Sharon AI. "Customer engagement continues to broaden and deepen, reflecting strong demand for secure, high-performance AI infrastructure and a growing recognition that access to power, compute and data sovereignty will be critical constraints as AI adoption accelerates.
"Our focus is on converting that demand and our contracted commitments into durable revenue growth and long-term shareholder value through disciplined execution. We are on track to bring contracted capacity online in accordance with our deployment schedule, while maintaining a thoughtful approach to capital allocation and pace of expansion. Revenue is expected to ramp materially from the third quarter of 2026 through 2027. With an experienced leadership team backed by deep technical and operating expertise across the business, a best-in-class partner ecosystem and a strengthened balance sheet, we believe Sharon AI is well positioned to become a leading sovereign AI infrastructure platform across
Subsequent Highlights
In the third quarter 2026 to-date, the Company has announced:
$1.32b nNew Zealand - Additional 80MW of capacity, bringing total capacity to 212MW, for deployment in 2026 and 2027, underpinned by a growing pipeline of additional capacity
$373m - 64,000+ NVIDIA GPUs expected to be deployed by mid 2027
- Anuj Goel as Chief Financial Officer and Melissa Anastasiou as Chief Legal Officer
2Q 2026 Results Conference Call & Webcast
Date & Time: Thursday, August 6, 2026, 4:30 p.m. ET
Webcast: Use this link
International Dial-in: +1-973-528-0011
Conference ID: 376509
A replay of the webcast will be available at sharonai.com/investors following the event.
About Sharon AI
Sharon AI (NASDAQ: SHAZ) is a leading Australian neocloud expanding access to artificial intelligence through trusted, secure and sovereign AI infrastructure. Through its AI Factory platform and colocation partners, Sharon AI enables organisations across
Disclosure Information
Sharon AI primarily uses its Investor Relations page (https://sharonai.com/investors/) to disclose material non-public information and to comply with its disclosure obligations under Regulation FD. The Company also notes that, at times, it uses other communication mediums including, but not limited to, its X account (sharon__ai) and/or LinkedIn account (sharon-AI) to disseminate information about the Company, and can be additional sources of information outside press releases, regulatory filings with the SEC and any other conference calls, webcasts, investor days, etc. that the company may hold.
Forward-Looking Statements
This press release may contain, and our officers and representatives may from time to time make, "forward-looking statements" within the meaning of the safe harbor provisions of the
- Service and product offerings;
- Receipt and use of proceeds;
- The deployment of assets and expansion of network procurement;
- Sharon AI's ability to engage with additional potential customers;
- Expansion of Sharon AI's data center footprint and capacity; and
- The strengthening of Sharon AI's partner network.
In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. You are cautioned that such statements are not guarantees of future performance and that actual results or developments may differ materially from those set forth in these forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause actual results to differ materially from these forward-looking statements include, among others, all of the risks described in the "Risk Factors" section of the Company's most recent Annual Report on Form 10-K filed with the SEC and other reports subsequently filed with the SEC. Additional assumptions, risks and uncertainties are described in detail in our registration statements, reports and other filings with the SEC, which are available at www.sec.gov.
The forward-looking statements and other information contained in this news release are made as of the date hereof and Sharon AI does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Non–GAAP Financial Measures
This press release includes "Adjusted EBITDA," which is a non–GAAP financial measure. The Company defines Adjusted EBITDA as net income (loss) adjusted to exclude: (i) interest expense (income), net; (ii) income tax expense (benefit); (iii) depreciation and amortization; (iv) stock-based compensation expense; (v) fair value adjustments on convertible notes; and (vi) other non-cash or non-recurring items that management does not consider indicative of the Company's ongoing operating performance. Adjusted EBITDA is not a substitute for net income (loss) or any other measure of financial performance prepared in accordance with
A reconciliation of Adjusted EBITDA to the most directly comparable
Contacts
Media
media@sharonai.com
Investors
investors@sharonai.com
CONSOLIDATED CONDENSED BALANCE SHEETS | ||||||||
June 30, | December 31, | |||||||
2026 | 2025 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 1,861,347,822 | $ | 71,073,024 | ||||
Trade and other receivables | 28,458,817 | 749,677 | ||||||
Convertible note proceeds receivable | - | 15,171,072 | ||||||
Assets held for sale | 1,170,289 | 1,135,490 | ||||||
Other current assets | 47,196,444 | 288,191 | ||||||
Total current assets | 1,938,173,372 | 88,417,454 | ||||||
Property and equipment, net | 26,323,307 | 15,207,775 | ||||||
Right of use assets, net | 6,889,203 | 7,140,877 | ||||||
Equipment, software and lease prepayments | 302,647,678 | - | ||||||
Certificates of deposits | 12,748,105 | 915,397 | ||||||
Other long-term assets | 16,512,329 | 3,414,432 | ||||||
Goodwill | 18,044,215 | 18,044,215 | ||||||
TOTAL ASSETS | $ | 2,321,338,209 | $ | 133,140,150 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||
Current liabilities | ||||||||
Trade and other payables | $ | 32,407,955 | $ | 3,433,320 | ||||
Customer deposits | 143,879,911 | - | ||||||
Warrant liability | 6,145,450 | 890,000 | ||||||
Note payable | - | 2,254,968 | ||||||
SAFE note liability | 6,025 | - | ||||||
Convertible notes | 1,006,535,059 | 129,017,286 | ||||||
Finance lease liabilities, current portion | 1,176,406 | 1,072,820 | ||||||
Other current liabilities | - | 2,701,932 | ||||||
Total current liabilities | 1,190,150,806 | 139,370,326 | ||||||
Finance lease liabilities, non-current | 3,640,024 | 3,918,081 | ||||||
TOTAL LIABILITIES | 1,193,790,830 | 143,288,407 | ||||||
Stockholders' equity (deficit): | ||||||||
Common Stock- Class A ( | 3,567 | 1,183 | ||||||
Common Stock- Class B ( | 14 | 14 | ||||||
Common Stock, value | 14 | 14 | ||||||
Additional paid-in capital | 1,624,995,090 | 33,861,613 | ||||||
Accumulated deficit | (491,747,880) | (43,529,190) | ||||||
Accumulated other comprehensive loss | (3,418,013) | (372,992) | ||||||
Noncontrolling interest | (2,285,399) | (108,885) | ||||||
TOTAL STOCKHOLDERS' EQUITY (DEFICIT) | 1,127,547,379 | (10,148,257) | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | $ | 2,321,338,209 | $ | 133,140,150 | ||||
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS | ||||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||
For the Three Months | For the Six Months Ended | |||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||
Revenue | $ | 1,931,381 | $ | 376,984 | $ | 2,225,396 | $ | 702,077 | ||||||||
Cost of revenue | 761,755 | 398,266 | 1,287,572 | 711,648 | ||||||||||||
Gross profit (loss) | 1,169,626 | (21,282) | 937,824 | (9,571) | ||||||||||||
Share-based compensation | 2,670,588 | 489,345 | 3,052,746 | 956,968 | ||||||||||||
Selling, general and administrative expenses | 8,685,424 | 1,083,093 | 12,700,643 | 2,090,523 | ||||||||||||
Other expenses | 14,597,792 | 1,169,712 | 12,787,838 | 1,676,132 | ||||||||||||
Other income | - | (153,199) | - | (961,713) | ||||||||||||
Loss from operations | (24,784,178) | (2,610,233) | (27,603,403) | (3,771,481) | ||||||||||||
Non-operating income (expense), net: | ||||||||||||||||
Change in fair value of digital assets | - | (62,657) | - | (391,090) | ||||||||||||
Change in fair value of warrant liabilities | (6,138,775) | - | (5,255,450) | - | ||||||||||||
Change in fair value of convertible notes | (400,440,855) | - | (470,668,608) | - | ||||||||||||
Change in fair value of share-based payment | 334,502 | - | 334,502 | - | ||||||||||||
Gain on investment in NUAI shares | 6,493,245 | - | 4,984,130 | - | ||||||||||||
Gain on sale of investment in TCDC | 856 | - | 65,920,568 | - | ||||||||||||
Interest income (expense), net | (4,527,540) | (43,521) | (3,267,654) | (55,912) | ||||||||||||
Loss before income taxes | (429,062,745) | (2,716,411) | (435,555,915) | (4,218,483) | ||||||||||||
Income tax (expense) benefit | (1,305,951) | 127,579 | (14,824,603) | 190,161 | ||||||||||||
Net loss | (430,368,696) | (2,588,832) | (450,380,518) | (4,028,322) | ||||||||||||
Net loss attributable to non-controlling interest | (2,065,770) | (12,426) | (2,161,826) | (19,336) | ||||||||||||
Net loss attributable to SharonAI Holdings | $ | (428,302,926) | $ | (2,576,406) | $ | (448,218,692) | $ | (4,008,986) | ||||||||
Net loss per share, basic and diluted | $ | (26.16) | $ | (2.41) | $ | (27.38) | $ | (3.76) | ||||||||
Weighted-average number of shares | 16,370,481 | 1,067,213 | 16,370,481 | 1,067,213 | ||||||||||||
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS | ||||||||
2026 | 2025 | |||||||
For the Six Months Ended | ||||||||
June 30, | ||||||||
2026 | 2025 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net loss for the period, including noncontrolling interest | $ | (450,380,518) | $ | (4,028,322) | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) | ||||||||
Depreciation | 3,199,299 | 803,955 | ||||||
Share based compensation | 3,052,746 | 956,968 | ||||||
Change in fair value of digital assets | - | 391,090 | ||||||
Intangible assets (FIL) revenue | - | (130,154) | ||||||
Intangible assets (FIL) cost of revenue | - | 138,070 | ||||||
Accelerated amortization of Intangible assets | - | 1,650,000 | ||||||
Deferred tax liability | - | 89,050 | ||||||
Unrealized (gains) losses on foreign currency exchange | 11,122,667 | (731,755) | ||||||
Change in fair value of warrant liability | 5,255,450 | - | ||||||
Change in fair value of convertible notes | 470,668,608 | - | ||||||
Gain (loss) on investment in NUAI shares | (4,984,130) | - | ||||||
Gain on sale of investment in TCDC | (65,920,568) | - | ||||||
Interest income on convertible note receivable | (1,342,466) | - | ||||||
Gain on sale of property and equipment | - | (961,713) | ||||||
Bad debt expense | - | 76,748 | ||||||
Changes in assets and liabilities: | ||||||||
Trade and other receivables | (26,712,905) | 932,259 | ||||||
Customer deposits | 143,879,911 | - | ||||||
Other current assets | (95,762,765) | (24,689) | ||||||
Other long-term assets | (2,212,252) | 9,355 | ||||||
Trade and other payables | 24,231,858 | (879,313) | ||||||
Income tax payable | 7,803,779 | - | ||||||
Interest received from convertible note receivable | 1,342,466 | - | ||||||
Net cash provided by (used in) operating activities | 23,241,180 | (1,708,451) | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Advance payments for property and equipment | (310,665,524) | - | ||||||
Purchase of certificates of deposit | (11,804,654) | - | ||||||
Payment for the purchase of property and equipment | (12,541,952) | (37,343) | ||||||
Payment for land purchase | (3,136,000) | - | ||||||
Cash proceeds from sale of TCDC investment | 9,850,000 | - | ||||||
Proceeds from sale of NUAI Shares | 14,984,130 | - | ||||||
Proceeds from convertible note receivable | 50,000,000 | - | ||||||
Proceeds from sales of digital assets | - | 93,051 | ||||||
Net cash provided by (used in) investing activities | (263,314,000) | 55,708 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Proceeds from issuance of common stock | 586,858,433 | - | ||||||
Cash received from convertible note issuance | 1,065,636,015 | - | ||||||
Issuance costs related to capital raise | (43,500,602) | - | ||||||
Proceeds from exercise of warrants | 370 | - | ||||||
Proceeds from issuance of pre-funded warrants | 438,141,548 | - | ||||||
Payment for lease liabilities | (712,210) | (284,491) | ||||||
Repayment of note payable | (2,249,124) | - | ||||||
Net cash provided by (used in) financing activities | 2,044,174,430 | (284,491) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (13,826,812) | (81,793) | ||||||
Net cash increase/(decreases) in cash and cash equivalents | 1,790,274,798 | (2,019,027) | ||||||
Cash and cash equivalents at beginning of period | 71,073,024 | 4,424,805 | ||||||
Cash and cash equivalents at end of period | $ | 1,861,347,822 | $ | 2,405,778 | ||||
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA | |||||||
For the Three Months Ended | |||||||
June 30, | |||||||
$ in thousands | 2026 | 2025 | |||||
Net loss | $ | (430,369) | $ | (2,589) | |||
+ Income tax expense (benefit) | 1,306 | (128) | |||||
+ Net interest expense (income) | 4,528 | 44 | |||||
+ Depreciation | 1,881 | 439 | |||||
EBITDA | (422,654) | (2,234) | |||||
+ Share-based compensation | 2,671 | 489 | |||||
+ Change in fair value of convertible notes | 400,441 | - | |||||
+ Change in fair value of warrant liabilities | 6,139 | - | |||||
+ Change in fair value of digital assets | - | 63 | |||||
+ Unrealized Foreign currency gain | 14,329 | - | |||||
+ Change in fair value of share-based payment | (335) | - | |||||
Adjusted EBITDA (Non-GAAP) | $ | 591 | $ | (1, 682) | |||
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SOURCE Sharon AI Holdings Inc.