Question · Q2 2025
The analyst sought clarification on the revenue model for the edge data centers, asking who the customers are and how revenue is generated. He also asked to confirm the unit economics (cost vs. annual revenue), the projected recurring revenue from 65 units, and whether SG&A expenses would increase to support the guided revenue growth for the year.
Answer
The company explained that revenue comes from customers leasing space and power in the data centers. Currently, only one EDC is installed, with most revenue coming from the APR Energy agreement. The unit economics of spending ~$1.2M to generate $300k-$400k in first-year revenue was confirmed, as was the projection of ~$20M+ in recurring revenue from 65 units. SG&A is expected to remain flat, as the company is already staffed to handle the growth and is looking for cost efficiencies.