WhiteFiber, Inc.

Please stand by. The conference will begin shortly. Hello and welcome to the White Fiber Third Quarter 2025 Earnings Conference Call. Good afternoon and thank you for joining us. We will begin with prepared remarks from management, followed by a question and answer session. During the Q&A, if you would like to ask a question, please press star 1 on your telephone keypad. As a reminder, today's conference is being recorded. I would now like to turn the call over to your host, Cameron Schneier, Senior Vice President of Capital Markets and Corporate Strategy at White Fiber. Cameron, please go ahead.

Thank you, and welcome to the White Fiber Third Quarter 2025 Earnings Call. Joining me today are Sam Tabar, our Chief Executive Officer, and Eric Huang, our Chief Financial Officer. Before we begin, I'd like to remind everyone that some of the statements we make on this call are forward-looking in nature and subject to risks and uncertainties that could cause actual results to differ. Such risks and certainties include, but are not limited to, those factors described in today's earnings press release, or Form 10-Q for this quarter ended September 30th, 2025, filed today. as well as our other filings we may make with the SEC from time to time. Our remarks today may also include non-GAAP financial measures. Reconciliations to the most directly comparable GAAP measures can be found in our Form 10-Q and in the earnings press release posted on our website. Following our prepared remarks, we'll open the call for questions. With that, I'll turn the call over to Sam to discuss our performance. Sam.

Thank you, Cam, and thank you all for joining us. The third quarter marked White Fiber's first reporting period following our IPO in August. and therefore it represents only a partial quarter as a standalone public company. This period reflects the natural lumpiness of a business in transition as we align operations and capital structure for our next stage of growth. Our focus remains on building long-term value by executing on our development pipeline, expanding customer relationships, and advancing our financing initiatives. I will start with an update on NC1, our flagship development project in North Carolina. The site remains our top priority. Design, utility interconnection, and pre-construction work are advancing on schedule. We remain on track for initial deployment in the first quarter of 2026. We expect NC1 to begin generating revenue in May of 2026. Over the past several months, we have seen a significant increase in demand for credible near-term high density capacity. NC1 is one of the very few sites in North America with meaningful availability in early 2026. That scarcity has made it a highly sought after resource. As we expanded commercial engagement around the site, we received more than 10 firm proposals from leading AI labs and enterprise customers. Commercial terms for this delivery window has also improved meaningfully, both in pricing and in overall duration. We are now in the closing stages of negotiations with multiple highly credit worthy counterparties. These are large scale, long duration, billion-dollar commitments for our customers. By enterprise standards, the process has progressed at a rapid pace. We continue to work collaboratively through final diligence tied to project readiness and delivery timing. We remain confident in the path to execution. As a young company operating in a market that has seen its share of unproven entrants, Credibility matters. Customers are making generational infrastructure decisions. Our responsibility is to demonstrate readiness, reliability, and the ability to execute. We focus on delivering what we promise. We will not compromise on counterparty strength or deal structure simply to announce a transaction. Taking a disciplined approach now positions us to secure that partnership that maximizes long-term equity value and provides clear visibility on future cash flows. Excuse me. In parallel, we are working closely with our debt advisors, credit partners, and prospective lenders to structure the agreement that will be ultimately finalized to be readily financeable on cost-effective terms. We expect the facility to target roughly 75% loan to value with the remaining equity portion funded through existing liquidity, operating cash flow, or other available sources. Our goal is to secure financing that supports the full 99 megawatt campus. We also want to maintain balance sheet flexibility and align capital deployment with contracted demand. In short, NC1 remains firmly on track. We believe the discipline that we've shown has strengthened both the commercial and financial profile of the project. We remain focused on execution and on building a cornerstone asset that will drive significant value for years to come. We believe the discipline and the patients that we've shown are now yielding a better result. We expect to finalize and anchor agreements in the very, very, very near term. The depth of demand we saw for NC1 also reinforces how broad the opportunity set is for white fiber. Several of the counterparties that engaged with us on NC1 have expressed interest in capacity in other regions where we do not yet have assets. Based on those conversations, we are narrowing in on a new development site that offers meaningful 2026 power availability and strong expansion potential. Client demand is guiding our site selection process. We are now actively progressing through diligence. Overall, our development pipeline remains very strong. We are currently evaluating more than one gigawatt of projects for the 2026 and 2027 timeframes. Our first priority remains finalizing the NC1 anchor and moving that project through financing and construction. The interest we have seen underscores the scale of opportunity ahead. The actionable portion of our pipeline is growing rapidly. We're driving that growth by identifying and securing high quality sites that others often overlook or can't access through traditional channels. This capability has become a key differentiator for Whitefiber as we build a platform for sustained growth. Turning to Montreal, our Montreal 3 facility is now operational and began recognizing revenue from our contract with Cerebras in October of this year. The retrofit was completed on schedule and within budget. For the fourth quarter, we expect Montreal 3 to contribute slightly more than $2 million of revenue with a full quarter contribution beginning in the first quarter of 2026. Revenue for this site should be approximately $1 million per month, depending on the Canadian USD exchange rate. Completing this complex retrofit in under six months from site control to revenue generation is a testament to the speed and precision of our development and operations team. That level of execution has not gone unnoticed by customers and partners. We are already receiving inbound inquiries to replicate this model at larger scale.