WhiteFiber's Expansion Gamble: 48% Revenue Surge, $8.8M Net Loss
WhiteFiber, Inc. (Nasdaq: WYFI) reported second-quarter 2025 financial results marked by robust revenue growth and strategic expansion, though profitability metrics declined amid elevated operating costs. Total revenue surged 48% year-over-year to $18.7 million, driven by a 33% increase in cloud services revenue to $16.6 million and $1.7 million in colocation services revenue [1]. Gross profit expanded to $11.5 million, with cloud and colocation segments maintaining gross margins of 61% and 60%, respectively. However, the company posted a net loss of $8.8 million, contrasting with a $1.95 million profit in the prior-year period, and Adjusted EBITDA fell to $3.3 million from $7.0 million in Q2 2024 [1].
The quarter highlighted WhiteFiber’s aggressive capital deployment following its August IPO, which raised $183 million at $17 per share [1]. The firm acquired a one-million-square-foot data center in North Carolina (NC-1) and initiated pre-construction for a 24-megawatt phase, slated for completion in Q1 2026. Management cited strong demand for NC-1, with prospective customers seeking capacity beyond the initial phase. Additionally, the company began deployment of wafer-scale systems for Cerebras under a 5MW IT load contract, with revenue expected in Q4 2025 [1].
Profitability pressures stemmed from a 12-fold increase in general and administrative expenses to $15.5 million, including $6.5 million in share-based compensation [1]. Operating expenses totaled $27.8 million, contributing to an operating loss of $9.2 million compared to an operating income of $2.4 million in Q2 2024. Analysts attributed the shift to strategic investments in infrastructure and the transition to a standalone public company [3].
WhiteFiber’s balance sheet strengthened post-IPO, with $183 million in proceeds and a CAD $60 million (USD $43.8 million) undrawn debt facility secured with Royal Bank of CanadaRY-- [1]. The company emphasized its positioning as a pure-play AI infrastructure provider, integrating GPU cloud services and data center capacity to address evolving enterprise demand. CEO Sam Tabar noted the firm’s ability to execute rapid, cost-effective retrofits, enabling it to outpace competitors in deployment timelines [1].
Analysts remain divided on valuation. The stock traded at a price-to-sales ratio of 13.4x, significantly above industry averages, with B. Riley projecting a Q2 2025 loss of $0.17 per share and a $34.00 price target [4]. Other firms, including Needham & Company and Macquarie, also assigned “Buy” ratings with price targets ranging from $25.00 to $34.00 [4]. However, some caution exists regarding the sustainability of growth amid high operating costs and competition in AI infrastructure [5].
WhiteFiber plans to leverage its liquidity and expansion pipeline to scale operations, with management targeting Q1 2026 for NC-1’s initial phase and ongoing discussions for larger megawatt contracts. The company’s next earnings report is scheduled for November 2025, offering further insight into its execution against strategic priorities [2].
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