WhiteFiber shares tumble as Q3 loss widens despite revenue growth
Investing.com -- WhiteFiber, Inc. (NASDAQ:WYFI), a provider of AI infrastructure and HPC solutions, reported a wider-than-expected third-quarter loss on Thursday, sending shares tumbling 14.9% in after-hours trading despite significant revenue growth.
The company posted a net loss of -$15.8 million, or -$0.47 per share, for the quarter ended September 30, 2025, compared to a net loss of -$0.4 million in the same period last year. Total revenue rose 65% YoY to $20.2 million from $12.3 million, driven primarily by a 48% increase in cloud services revenue, which reached $18.0 million.
WhiteFiber’s stock plunged following the results as investors focused on the company’s widening losses, which the company attributed to non-cash stock-based compensation and increased costs following its August IPO. Adjusted EBITDA fell to $2.3 million from $5.6 million in the prior-year period.
"The third quarter marked an important transition for WhiteFiber as we moved from launch to scale following our IPO," said Sam Tabar, Chief Executive Officer. "Our focus remains on disciplined execution and building durable value across both our colocation and cloud platforms."
The company reported gross profit of $12.7 million, up 90% YoY, with cloud services delivering a gross margin of approximately 65% and colocation services contributing a 60% gross margin.
WhiteFiber completed its initial public offering on August 8, raising approximately $183 million. The company ended the quarter with $166.5 million in cash and cash equivalents, which it plans to use for data-center development and GPU procurement.
The company is currently advancing its North Carolina-1 campus development, with the initial 24-megawatt phase on schedule for early 2026 delivery.
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