WhiteFiber, Inc.

Hello and welcome to the White Fiber First Quarter 2026 Earnings Conference Call. Good morning 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'd like to ask a question, please press star one on your telephone keypad. As a reminder, today's conference is being recorded. I'd now like to turn the call over to your host, Cameron Schneer, Vice President of Capital Markets and Corporate Strategy at White Fiber. Cameron, please go ahead.

Thank you, and welcome to the White Fiber First Quarter 2026 Earnings Call. Joining me today are Sam Tabar, our Chief Executive Officer, and Eric Wong, 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 materially. Such risks and uncertainties include, but are not limited to, those factors described in today's earnings press release, our Form 10-Q for the quarter ended March 31, 2026, filed today, as well as our other filings we 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 will open the call for questions. With that, I'll turn the call over to Sam to discuss her performance. Sam.

Thank you, Cam, and thank you, everyone, for joining us. The first quarter was another important quarter for White Fiber. We delivered a solid first quarter with year over year revenue growth, strong gross margins and positive adjusted EBITDA while continuing to invest in the infrastructure platform we are building. More importantly, We continue to make progress across the four areas that matter most in creating long-term value creation. Data center development, customer demand, financing, and cloud capacity deployment. The market backdrop remains very strong. Demand for AI infrastructure continues to exceed the available supply. Customers need power. They need high density capacity. They need speed. and they need partners who can actually execute. That last point is important. In this market, demand is not the main constraint. Access to potential sites is not the main constraint. The real constraint is execution. Power has to be secured. Equipment has to arrive. Capital has to be available. Customer requirements have to be finalized. Construction has to be managed and the facility has to be delivered and operated at a high standard. That is where we believe white fiber is differentiated. Our retrofit first strategy is designed to reduce the development risk and shorten the path from site acquisition to revenue. Montreal 3 is a good example. We converted an existing industrial facility into a Tier 3 data center in approximately six months. Who else does that? And now the site is supporting Cerebrus. At the same time, the current market environment is challenging. Equipment lead times are longer. Supply chains are tighter. Utility and commissioning timelines are complex. That is why we are disciplined about how we commit to new projects and why execution remains the central focus of the business. With that context, I'll start with NC1, our site in North Carolina. NC1 continued to make substantial progress during the quarter and after quarter end. Duke Energy has completed delivery of the initial 54 gross megawatts of utility power to the site. supporting the first 40 megawatts of IT load under our agreement within scale. Construction and commissioning activity remains highly active, with approximately 600 personnel on site last week as the facility moves through final commissioning stages. The major equipment packages needed for the deployment, including generators, UPS systems, and chillers, are all on site. The remaining supply chain item we are managing relates to certain medium voltage switchgear components. That is not a broad equipment availability issue across the project. We expect to begin delivering initial capacity within the next couple of weeks. In connection with the supply chain related timing item, similar to what we are seeing across the broader sector, delivery may begin slightly later than June 1st. Based on our current discussions, we did not expect a material delay, a material impact to our customers' commissioning process, or a change to the overall project economics. The core commercial rationale for NC1 remains unchanged. The project is backed by a long-term agreement with N-scale, and the deployment is supported by N-scale's investment-grade hyperscaler offtake. As a reminder, Construction started in January. We are moving this project from construction to initial capacity delivery on a timeline unmatched by any of our peers for a 40 megawatt AI infrastructure deployment. We believe NC1 validates the strength and speed to market of our retrofit model, especially in an environment where utility timelines and electrical equipment constraints are impacting projects across the broader data center industry. Importantly, NC1 remains a strategic platform asset beyond the initial deployment. We continue advancing plans for additional capacity at the site and expect to begin marketing the next 45 megawatts tranche of capacity this summer. We are also working with the utility on longer-term power expansion opportunities with the potential to scale the site up to approximately 300 gross megawatts over time. That is why we remain excited about NC1. The initial N-scale deployment is important, but it is not the full opportunity. We believe NC1 can become a larger platform asset over time as we bring the first 40 megawatts online, advance the next tranche of capacity, and continue working on the broader power expansion path. In short, NC1 is nearing the point where it could begin converting contracted demand into revenue. We believe this will be an important milestone for, excuse me, We believe that this will be an important milestone for white fiber and a major proof point that our retrofit model can create a large-scale, high-value AI infrastructure. Turning to Montreal 3. The first quarter was the first full quarter of operations for that facility. Montreal 3 is supporting our co-location agreement with Cerebrus. Cerebrus is an important innovator in AI infrastructure, and we are proud to support their growth. We congratulate their team on this exciting milestone as they become a public company, and we look forward to continuing to support them as their infrastructure needs grow over time. After quarter end, we completed the purchase of Montreal 3 through the exercise of our previously disclosed purchase option. The purchase was supported by our amended credit facility from the Royal Bank of Canada. We believe owning Montreal III is strategically beneficial. It reduces our lease payments by approximately 3.1 million Canadian or 2.3 million US annually over the remaining term. It also gives us greater control over a strategic asset that is already generating revenue and we believe it allows us to capture more of the upside if the site can be expanded. On that note, we have submitted an application with the local utility to more than triple the available power of that site over time. This remains subject to utility review and approval, but it is an important part of why we believe ownership of that specific site is valuable. If approved, the incremental power would increase the strategic value of Montreal 3 well beyond the current deployment. This is a good example of how we think about our platform. We are not only bringing sites online quickly, we are also looking for ways to own, optimize, and expand assets once they are operational. Turning to Montreal 2. We continue to advance discussions around the best customer solution for that site. We have quality customer interest in the facility, and we believe the location can support valuable enterprise and AI infrastructure use cases. The site is smaller than NC1, but it has strategic value because of its location, connectivity, and potential fit for customers seeking more targeted deployments. We are focused on matching the site with the right customer and the right commercial structure. As with the rest of our pipeline, we will remain disciplined and move forward only when there is customer demand, economics, and capital plans are all aligned. More broadly, our pipeline remains active and continues to improve in both quality and scale. We are not constrained by customer demand. and we are not constrained by access to potential sites. We have both. The gating item is making sure each project has the right combination of power, customer alignment, capital availability, equipment visibility, and execution certainty before we commit. That discipline is important, but it should not be mistaken for a lack of opportunity. We are seeing more customer interest than we can currently serve, and we are evaluating sites that are larger and more scalable than our initial Montreal deployments. The opportunities we are most advanced on today are not small follow-on projects. Several are comparable to or even larger than NC1 in potential scale. Importantly, We believe these opportunities also offer meaningful near-term power availability along with significant expansion paths over time. We are not disclosing specific locations or counterparties before transactions are finalized because that protects our negotiating position. But we do want shareholders to understand that the quality and scale of the pipeline has continued to improve. Our goal is to demonstrate in the coming months that this pipeline can translate into actionable, customer-backed projects. We are focused on opportunities where we can align customer demand, site control, power availability, and financing from the outset. That is important in this market. Equipment lead times are increasing, utility timelines are complex, and customers are demanding more certainty before committing to large deployments. We do not want to announce capacity just to announce capacity. We want to build a pipeline that can be contracted, financed, delivered, and operated reliably. We are advancing several opportunities and expect to close at least one additional site in the coming months subject to final diligence, documentation, customer alignment, and capital availability. That is the standard we are holding ourselves to. We believe this approach gives us the best chance to turn a strong pipeline into durable, financed, revenue generating assets.