Exascale Labs Holdings Inc. Reports 111% Revenue Growth for Full Fiscal Year 2026 and Provides Business Update Following Successful Nasdaq Listing
Fiscal 2026 sales growth came alongside higher operating expenses and a wider net loss than in fiscal 2025.
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Rhea-AI Summary
Exascale Labs Holdings (XLAB) reported fiscal 2026 revenue of $14.8 million as its GPU computing service expanded. Revenue rose 111.3% from fiscal 2025; gross profit reached $2.4 million, while net loss widened to $12.2 million from $7.7 million. Operating expenses rose to $7.2 million from $4.2 million. Cash was $2.7 million at June 30, before approximately $11.8 million in net cash proceeds from its August 27 business combination with D. Boral ARC Acquisition I Corp.
Class A shares and warrants began Nasdaq trading August 28. Outstanding agreements for future equity, valued at approximately $29.1 million on June 30, converted to Class A shares at closing. Exascale deployed GPU cluster management software, entered a non-binding 800 VDC development letter of intent with Compal Electronics and signed an offshore wind-powered compute memorandum with EnergyBank. It reported an approximately $300 million qualified customer pipeline and plans capacity expansion and software monetization in fiscal 2027.
Positive
- Revenue rose 111.3% to $14.8 million in fiscal 2026 from $7.0 million in fiscal 2025.
- Intelligent computing power service revenue increased 124.0% in fiscal 2026.
- Gross profit rose to $2.4 million from $1.1 million; gross margin increased to 16.3% from 15.8%.
- Approximately $11.8 million in net cash proceeds became available through the completed business combination.
- Outstanding future-equity agreements converted to Class A shares at closing, eliminating their liability from the balance sheet.
- Class A shares and warrants began Nasdaq Global Market trading on August 28, 2026.
- Approximately $300 million in qualified customer pipeline was reported by the company.
- GPU cluster management software was deployed with dynamic resource allocation and automated failover.
- Compal Electronics letter of intent sets out joint development of a U.S.-based 800 VDC GPU validation platform.
- EnergyBank memorandum covers integrating floating offshore wind power and energy storage into modular AI compute infrastructure.
- Fiscal 2027 plans include expanding GPU capacity, commercializing power and cooling solutions, and increasing software adoption.
- Jake Carney became chief financial officer effective September 25, 2026.
Negative
- Net loss widened to $12.2 million in fiscal 2026 from $7.7 million in fiscal 2025.
- Operating expenses rose to $7.2 million from $4.2 million, including higher research and development costs.
- Loss from operations widened to $4,800,840 from $3,044,846.
- Loss per share widened to $8,108.26 from $5,106.44 on the reported weighted-average share count.
- Cash and cash equivalents fell to $2,693,586 at June 30, 2026, from $4,231,689 a year earlier.
- Shareholders’ deficit reached $25,158,775 at June 30, 2026, before the business combination.
- Class A shares were issued when outstanding future-equity agreements converted, diluting existing holders.
- Compal letter of intent is non-binding; the development work is not yet a signed contract.
- EnergyBank memorandum is an early-stage agreement, with conversion into a signed contract still pending.
Details
Market Reaction – XLAB
On Sep 28, the day this news came out, the latest delayed price for XLAB is 1.25% below the previous close. Argus tracked a peak move of +3.7% during the session. Argus tracked a trough of -38.6% from its starting point during tracking. Our momentum scanner has recorded 14 alerts for this stock so far that day. The latest delayed price is $2.37. Relative volume is above average at 1.6x the average.
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Key Figures
- FY2026 revenue
- $14.8 million
- Fiscal year ended June 30, 2026
- Revenue growth
- 111.3%
- FY2026 compared with FY2025
- Gross profit
- $2.4 million
- FY2026
- Gross margin
- 16.3%
- FY2026
- Net loss
- $12.2 million
- FY2026
- Cash and cash equivalents
- $2.7 million
- As of June 30, 2026
- Net cash proceeds
- $11.8 million
- Obtained in connection with the business combination
- SAFE fair value converted
- $29.1 million
- Outstanding SAFEs converted into Class A common stock at business combination closing
Key Terms
simple agreements for future equity financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Fiscal year 2026 revenue increased
111% to$14.8 million , compared to$7.0 million in fiscal year 2025, driven by accelerating demand for the Company’s software-defined GPU-as-a-Service platform. - Successfully completed business combination with D. Boral ARC Acquisition I Corp.; commenced trading on Nasdaq under ticker symbols “XLAB” and “XLABW” for its Class A common stock and its warrants, respectively, on August 28, 2026.
- Expanded strategic partnerships, including an LOI with Compal Electronics for next-generation 800 VDC GPU validation platforms and an MOU with EnergyBank for floating offshore wind-powered AI compute.
HOUSTON, Sept. 28, 2026 (GLOBE NEWSWIRE) -- Exascale Labs Holdings Inc. (Nasdaq: XLAB) (“Exascale” or the “Company”), a provider of next-generation AI compute infrastructure, today announced its financial and operational results for the fiscal year ended June 30, 2026.
“Fiscal year 2026 was the year we laid the foundation to become a public company,” said Hoansoo Lee, Chief Executive Officer of Exascale. “To establish our readiness for this next phase, we grew our GPU-as-a-Service business, deepened our infrastructure partnership with Compal, and closed the agreement that brought Exascale to Nasdaq. Since listing in August, we’ve moved quickly, signing a memorandum of understanding with EnergyBank for offshore wind-powered compute, and signing a letter of intent with Compal on our 800 VDC platform. Our qualified customer pipeline has grown to approximately
Mr. Lee continued, “Exascale's revenue grew
Recent Strategic & Operational Highlights
- Successful Nasdaq Public Listing: Exascale completed its business combination with D. Boral ARC Acquisition I Corp. Exascale’s Class A common stock and warrants began trading on the Nasdaq Global Market under the ticker symbols "XLAB" and “XLABW,” respectively, on August 28, 2026.
- Compal Electronics LOI: Entered into a non-binding Letter of Intent (“LOI”) with Compal Electronics to jointly develop a U.S.-based native 800 VDC validation platform for next-generation GPU systems. The goal of joint effort is to validate high-efficiency power architectures designed for ultra-high-density AI data centers.
- Appointment of New Chief Financial Officer: Exascale appointed Jake Carney as Chief Financial Officer, effective September 25, 2026.
- EnergyBank Sustainable Compute MOU: Signed a Memorandum of Understanding (“MOU”) with EnergyBank to integrate floating offshore wind power and long-duration energy storage into Exascale’s modular AI compute infrastructure.
- Platform Orchestration Enhancements: Deployed proprietary GPU cluster management software enabling dynamic resource allocation, automated failover, and optimized latency for high-concurrency LLM inference workloads.
"Our 800 VDC validation work with Compal and the orchestration layer we shipped this year are the same bet, power density is a real bottleneck for AI infrastructure, not just GPU supply," said Zach Bright, Head of R&D at Exascale. "Both are built to hold up as workloads get denser, and that's what we're most focused on getting right."
Fiscal Year 2026 Financial Highlights (“FY 2026”)
- Total Revenue: FY 2026 revenue was
$14.8 million , representing an increase of111.3% compared to$7.0 million reported in Fiscal Year 2025 (“FY 2025”). The growth was primarily attributed a124.0% increase in revenue from Exascale's intelligent computing power service, driven by higher spending from existing customers and an expanding customer base, with a roughly68% customer renewal rate. - Gross Profit: Gross profit for FY 2026 was
$2.4 million , and16.3% gross margin, compared to$1.1 million gross profit and15.8% gross in FY 2025. This increase in growth profit and gross margin reflects scalable operational efficiency amid rapid revenue growth. - Operating Expenses: Operating expenses were
$7.2 million in FY 2026, compared to$4.2 million in FY 2025. The increase was driven primarily by a$2.7 million increase in research and development expenses and a$0.9 million increase in general and administrative expenses, partially offset by a decrease in selling and marketing expenses of$0.5 million . - Net Loss: Net loss for FY 2026 was
$12.2 million , compared to$7.7 million in FY 2025. The increase was driven primarily by higher operating expenses associated with scaling infrastructure, expanding market presence, and advancing our technology platform, as well as a non-cash fair value adjustment on our simple agreements for future equity (“SAFE’s”). As of June 30, 2026, those SAFEs carried an aggregate fair value of approximately$29.1 million ; all outstanding SAFEs converted into the Company’s Class A common stock upon the closing of the business combination on August 27, 2026, eliminating the liability from the Company's balance sheet. - Cash and Capital Resources: As of June 30, 2026, Exascale held
$2.7 million in cash, supplemented post-period by the successful closing of its business combination on August 27, 2026. In connection with the closing, Exascale obtained access to net cash proceeds of approximately$11.8 million from the business combination.
Fiscal Year 2027 Outlook
For the fiscal year ending June 30, 2027, Exascale intends to focus on the following core growth pillars:
- Capacity Expansion: Accelerate GPU-as-a-Service capacity expansion by onboarding additional top-tier data center host sites and GPU clusters across North America, Asia, and Europe.
- Next-Gen Power & Cooling Architecture: Commercialize proprietary native 800 VDC and modular high-density cooling solutions to address power density bottlenecks facing enterprise AI workloads.
- Enterprise SaaS Platform Monetization: Drive adoption of Exascale’s proprietary GPU orchestration and cluster management software among AI operators.
About Exascale
Exascale is a next-generation AI infrastructure provider operating a software-defined GPU compute platform and related AI infrastructure solutions. Its business includes, GPU-as-a-service, GPU cluster management and optimization, and infrastructure solutions spanning modular data centers, HVDC power, high-density cooling, and data center interconnectivity. Exascale's platform supports large-scale AI workloads, including training, fine-tuning, high-concurrency inference, and API-based token generation. For more information, visit www.exascalelabs.ai.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "anticipate," "believe," "can," "continue," "could," "expect," "intend," "may," "plan," "project," "seek," "should," "will," and similar expressions. These statements include, without limitation, statements regarding Exascale's future financial and operating performance, its business strategy and growth plans, anticipated demand for AI infrastructure and compute capacity, planned deployment of modular data center, liquid cooling, HVDC power, data center interconnectivity and energy storage solutions, expectations regarding additional financing, and Exascale's competitive and market positioning, and statements regarding the MOU and the LOI and the plans of the parties thereto regarding such LOI and MOU. The MOU and LOI are non-binding and do not create any obligations for the parties thereto to into any definitive agreements.
These statements are based on current expectations and assumptions, and involve risks and uncertainties that could cause actual results or events to differ materially, including, among others, changes in customer demand, supply constraints for GPUs and related infrastructure components, Exascale's ability to convert its pipeline opportunities into customer relationships and revenue, competitive pressures from larger and better-capitalized providers, technological risks, operational and execution risks associated with scaling infrastructure deployments, Exascale's ability to access financing on favorable terms, regulatory changes, and macroeconomic factors.
If any of these risks materialize or the assumptions prove incorrect, actual results could differ materially from the results contained in or implied by these forward-looking statements. There may be additional risks that Exascale presently does not know of or cannot anticipate, or that Exascale currently believes are immaterial, that could also cause actual results to differ materially from those contained in or implied by the forward-looking statements.
Forward-looking statements reflect Exascale's expectations, plans or forecasts of future events and views as of the date of this press release. Exascale anticipates that subsequent events and developments will cause its assessments to change. However, while Exascale may elect to update these forward-looking statements at some point in the future, Exascale specifically disclaims any obligation to do so.
Readers are cautioned not to place undue reliance upon any forward-looking statement.
Investor Contact
Cameron Radinovic
KCSA Strategic Communications
Exascale@KCSA.com
Media Contact
Hannah Erger
KCSA Strategic Communications
Exascale@KCSA.com
| EXASCALE LABS INC. Consolidated Statements of Operations (All amounts in US$, except for number of shares and per share data) (unaudited) | ||||||
| For the years ended June 30, | ||||||
| 2025 | 2026 | |||||
| Revenues | $ | 7,015,512 | $ | 14,822,799 | ||
| Cost of revenues | (5,910,315 | ) | (12,404,546 | ) | ||
| Gross profit | 1,105,197 | 2,418,253 | ||||
| Operating expenses | ||||||
| Selling and marketing expenses | (989,155 | ) | (499,392 | ) | ||
| General and administrative expenses | (362,982 | ) | (1,229,516 | ) | ||
| Research and development expenses | (2,797,906 | ) | (5,490,185 | ) | ||
| Total operating expenses | (4,150,043 | ) | (7,219,093 | ) | ||
| Loss from operations | (3,044,846 | ) | (4,800,840 | ) | ||
| Change in fair value of simple agreements for future equity | (4,614,821 | ) | (7,377,383 | ) | ||
| Other income | - | 15,832 | ||||
| Loss before income tax expenses | (7,659,667 | ) | (12,162,391 | ) | ||
| Income tax expenses | - | - | ||||
| Net loss and total comprehensive loss | $ | (7,659,667 | ) | $ | (12,162,391 | ) |
| Loss per share | ||||||
| Basic and diluted | $ | (5,106.44 | ) | $ | (8,108.26 | ) |
| Weighted average number of shares used to compute loss per share | ||||||
| Basic and diluted | 1,500 | 1,500 | ||||
[Balance sheet reflects Exascale as a standalone private company as of June 30, 2026; it will not include the effects of the August 27, 2026 business combination, which is a subsequent event]
| EXASCALE LABS INC. Consolidated Balance Sheets (All amounts in US$, except for number of shares) | ||||||
| As of June 30, | ||||||
| 2025 | 2026 | |||||
| ASSETS | ||||||
| Current Assets | ||||||
| Cash and cash equivalents | $ | 4,231,689 | $ | 2,693,586 | ||
| U.S. Dollar Coin | - | 2,160,746 | ||||
| Accounts receivable, net | 152,536 | 1,107,210 | ||||
| Advance to suppliers | 1,030,761 | 112,343 | ||||
| Refundable deposits receivable | 681,125 | 450,000 | ||||
| Other receivables | 1,207,626 | - | ||||
| Total Current Assets | 7,303,737 | 6,523,885 | ||||
| Non-Current Assets | ||||||
| Deferred offering costs | - | 190,000 | ||||
| Equipment, net | 19,600 | 12,840 | ||||
| Total Non-Current Assets | 19,600 | 202,840 | ||||
| Total Assets | $ | 7,323,337 | $ | 6,726,725 | ||
| LIABILITIES AND SHAREHOLDERS’ DEFICIT | ||||||
| Current Liabilities | ||||||
| Accounts payable | $ | 90,015 | $ | 916,422 | ||
| Simple agreements for future equity | 18,243,885 | 29,121,268 | ||||
| Contract liabilities | 432,760 | 1,070,378 | ||||
| Refundable deposits payable | 1,445,580 | 359,481 | ||||
| Other current liabilities | 107,481 | 417,951 | ||||
| Total Current Liabilities | 20,319,721 | 31,885,500 | ||||
| Total Liabilities | $ | 20,319,721 | $ | 31,885,500 | ||
| Commitments and contingencies | ||||||
| Shareholders’ Deficit | ||||||
| Common stock (US | $ | 15 | $ | - | ||
| Class A common stock (US | - | 3 | ||||
| Class B common stock (US | - | 12 | ||||
| Additional paid-in capital | 220,636 | 220,636 | ||||
| Accumulated deficit | (13,217,035 | ) | (25,379,426 | ) | ||
| Total Shareholders’ Deficit | $ | (12,996,384 | ) | $ | (25,158,775 | ) |
| Total Liabilities and Shareholders’ Deficit | $ | 7,323,337 | $ | 6,726,725 | ||
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much did Exascale Labs Holdings revenue grow in fiscal 2026?
Exascale’s fiscal 2026 revenue rose 111.3% to $14.8 million from $7.0 million in fiscal 2025. Revenue from its intelligent computing power service increased 124.0%, driven by higher spending from existing customers and an expanding customer base.
Why did Exascale Labs Holdings report a larger fiscal 2026 net loss?
Exascale’s fiscal 2026 net loss widened to $12.2 million from $7.7 million. The company attributed the increase primarily to higher operating expenses and a non-cash change in the fair value of its agreements for future equity. Research and development and general and administrative expenses rose, partly offset by lower selling and marketing expenses.
What does Exascale Labs Holdings plan to develop with Compal Electronics?
Exascale and Compal Electronics entered a non-binding letter of intent to jointly develop a U.S.-based native 800 VDC validation platform for next-generation GPU systems. The stated goal is to validate power architectures designed for ultra-high-density AI data centers.