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 WhiteFiber, Inc. Reports Second Quarter 2025 Results^[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 WhiteFiber, Inc. Reports Second Quarter 2025 Results^[1].

The quarter highlighted WhiteFiber’s aggressive capital deployment following its August IPO, which raised $183 million at $17 per share WhiteFiber, Inc. Reports Second Quarter 2025 Results^[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 WhiteFiber, Inc. Reports Second Quarter 2025 Results^[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 WhiteFiber, Inc. Reports Second Quarter 2025 Results^[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 WhiteFiber, Inc. Reports Second Quarter 2025 Results^[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 Canada WhiteFiber, Inc. Reports Second Quarter 2025 Results^[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 WhiteFiber, Inc. Reports Second Quarter 2025 Results^[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 Q2 Earnings Estimate for WhiteFiber Issued By B. Riley^[4]. Other firms, including Needham & Company and Macquarie, also assigned “Buy” ratings with price targets ranging from $25.00 to $34.00 Q2 Earnings Estimate for WhiteFiber Issued By B. Riley^[4]. However, some caution exists regarding the sustainability of growth amid high operating costs and competition in AI infrastructure WhiteFiber (WYFI): Assessing Valuation Ahead of Executive …^[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 Earnings call transcript: WhiteFiber Inc reports Q2 2025 revenue …^[2].