WhiteFiber 2025 Q3 Earnings Wider Losses Amid 65% Revenue Growth

WhiteFiber (WYFI) reported fiscal 2025 Q3 earnings on Nov 14, 2025, with results that fell short of Wall Street expectations. The company posted a net loss of $15.75 million, or $0.47 per share, widening from $364,563 in 2024 Q3, while revenue surged 65% to $20.2 million. Despite robust top-line growth, the stock plunged 14.9% in after-hours trading as investors focused on deteriorating profitability tied to post-IPO expenses.

Revenue

WhiteFiber’s total revenue rose sharply to $20.2 million in Q3 2025, reflecting a 65% year-over-year increase. Cloud services drove the majority of this growth, contributing $18.0 million, a 48% rise from the prior year. Colocation services added $1.69 million, while other segments generated $454,588. The cloud division’s 65% gross margin underscored its profitability, though the company acknowledged underperformance in cloud revenue relative to analyst estimates.

Earnings/Net Income

The company’s net loss expanded to $15.75 million in Q3 2025, a 4,221.3% increase from the $364,563 loss in 2024 Q3. Earnings per share (EPS) fell to -$0.47, missing estimates by $0.31. The loss was attributed to non-cash stock-based compensation expenses and elevated public-company costs following the August IPO. The EPS performance reflects a significant deterioration in profitability despite strong revenue growth.

Post-Earnings Price Action Review

WhiteFiber’s stock experienced volatile trading post-earnings, with a 10.43% intraday gain on the day of the report but a 37.39% decline over the subsequent trading week. Month-to-date, the stock fell 50.93%, underperforming the broader market. The sharp sell-off highlighted investor concerns over the company’s ability to convert growth into profitability, despite its $166.5 million cash reserves and ongoing data-center expansion projects.

CEO Commentary

CEO Sam Tabar emphasized that Q3 marked a transitional phase for WhiteFiber post-IPO, stating, “Our focus remains on disciplined execution and building durable value across both our colocation and cloud platforms.” Tabar highlighted the company’s $18.0 million cloud services revenue and 65% gross margin as strengths but acknowledged the need to address rising operational costs. The CEO reiterated confidence in the North Carolina-1 data-center project, scheduled for early 2026, as a catalyst for long-term growth.

Guidance

WhiteFiber did not provide explicit forward-looking financial guidance for Q4 2025 or fiscal 2026. However, management noted ongoing investments in GPU procurement and data-center development, with $166.5 million in cash reserves to fund these initiatives. The company’s adjusted EBITDA of $2.3 million in Q3 2025, down from $5.6 million in the prior-year period, signaled near-term operational challenges despite strong gross margins.

Additional News

1. IPO and Capital Deployment: WhiteFiber completed its $183 million IPO in August 2025, with $166.5 million in cash reserves as of September 30, 2025. The funds are earmarked for data-center development and GPU procurement.

2. Data-Center Expansion: The company advanced its North Carolina-1 campus project, with a 24-megawatt phase on track for early 2026. The MTL-3 wafer-scale deployment, operational since October 2025, is now revenue-generating.

3. Institutional Investment: Major investors, including Vanguard and JPMorgan, initiated new stakes in Q3 2025, signaling growing institutional confidence in the company’s AI infrastructure strategy.

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