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Hyperscale Data, Inc. (GPUS)·Q1 2025 Earnings Summary
Executive Summary
- Q1 2025 preliminary revenue “surpassing $25 million” and a one-time ~$9.7 million gain from deconsolidation of Avalanche International; management emphasized transition of the Michigan facility into an AI data center .
- Initial FY 2025 GAAP revenue guidance of $115–$125 million was later raised to $125–$135 million, driven by an expected reconsolidation of defense affiliate Gresham Worldwide upon its Chapter 11 emergence .
- Pro forma annualized revenue including Gresham would be $155–$165 million, with an incremental ~$10 million expected in Q4 2025 if reconsolidated by October 1, 2025 .
- Strategic narrative centers on becoming a pure-play AI/HPC data center operator by end-2025 via divestiture of Ault Capital Group (ACG) and upgrading power capacity at the Michigan site from ~30MW toward ~340MW, subject to funding and regulatory risks .
What Went Well and What Went Wrong
What Went Well
- Preliminary Q1 revenue surpassed $25 million, with management citing “growth across several of our core businesses” and AI data center transition as milestones .
- FY 2025 guidance was raised to $125–$135 million as the company entered a settlement expected to facilitate Gresham Worldwide’s exit from Chapter 11 and reconsolidation (a material strategic win) .
- Clear strategic focus: management reiterated plans to divest ACG by year-end 2025 and operate exclusively as an HPC/AI data center company, positioning for AI infrastructure demand .
What Went Wrong
- Profitability remains challenged: S&P Global shows Q1 2025 EBITDA of -$1.183 million*, EBIT margin -25.5%, and diluted EPS of -$0.98; the one-time $9.7 million gain did not translate to positive net income for the quarter .
- YoY softness: S&P Global indicates Q1 2025 revenue of $22.632 million* vs Q1 2024 at $27.673 million*, and gross margin declined from 39.4%* to 21.1%*, reflecting mix and operational pressures.
- Execution risks on the AI data center power plan are non-trivial (funding, regulatory approvals, easements/land rights), any of which could delay/curtail upgrades and the scaling needed to support AI workloads .
Values retrieved from S&P Global.*
Financial Results
Quarterly Performance (S&P Global fundamentals)
Values retrieved from S&P Global.*
YoY Comparison (S&P Global)
Values retrieved from S&P Global.*
Document-based Disclosures
FY 2024 Segment Context (from preliminary)
AI Data Center KPIs (disclosed targets)
Guidance Changes
Earnings Call Themes & Trends
Note: No Q1 2025 earnings call transcript was found in our document catalog; themes are drawn from SEC 8-Ks and press releases .
Management Commentary
- “2025 is off to a strong start with growth across several of our core businesses… transition of the Michigan facility to an AI data center and partial divestment of non-core assets are key milestones” — CEO William B. Horne .
- “The settlement marks a turning point for Gresham Worldwide… expected to create substantial value… meaningful revenue contribution and operational momentum” — Executive Chairman Milton “Todd” Ault III .
- Strategic intent: transform into a pure-play AI/HPC data center operator by end-2025 via ACG divestiture and power capacity expansion at Michigan .
Q&A Highlights
No Q1 2025 earnings call transcript was available; therefore, Q&A highlights and any verbal guidance clarifications are not available from primary sources in this period (no transcript found).
Estimates Context
- S&P Global consensus for Q1 2025 revenue in our query returned the actual of $25.021 million without a consensus mean; EPS consensus and target price data were unavailable in this pull. Values retrieved from S&P Global.
- Given the company’s updated FY 2025 guidance ($125–$135 million) and pro forma annualized contribution from Gresham ($40 million), Street models may need to reflect higher consolidated revenue assumptions in H2 2025 and Q4 2025 specifically .
- Preliminary revenue language (“surpassing $25 million”) suggests initial actual may be above $25.0 million, pending formal filing; note potential reconciliation vs S&P quarterly time-series showing $22.632 million* for Q1 2025. Values retrieved from S&P Global .
Values retrieved from S&P Global.*
Key Takeaways for Investors
- Guidance raised: FY 2025 GAAP revenue guidance increased to $125–$135 million; pro forma annualized $155–$165 million including Gresham — a clear positive revision catalyst .
- Strategic focus on AI/HPC: continued transition of Michigan facility and plan to scale power capacity toward ~340MW — critical to monetizing AI demand; execution risks remain (funding/approvals/land rights) .
- Corporate actions: ACG divestiture targeted by Dec 31, 2025 via Series F exchange; cleaner AI/HPC pure-play profile could be a medium-term rerating factor .
- Near-term numbers are preliminary and include a one-time ~$9.7 million gain; underlying profitability remains negative per S&P Global metrics, requiring operational improvement for sustainable earnings power . Values retrieved from S&P Global.*
- Settlement path for Gresham likely enables reconsolidation by Oct 1, 2025, adding ~$10 million in Q4 revenue — an H2 2025 upside lever if executed .
- For modeling: consider higher H2 revenue trajectory, potential margin dilution until AI/HPC capacity ramps, and timing risks on power upgrades and bankruptcy court approvals .
- Trading lens: Watch for formal Q1 filing, any AI data center customer wins, and court milestones on Gresham; the narrative is improving, but proof points on capacity and contracts will drive multiple expansion .
Notes:
- S&P Global data marked with an asterisk (*) indicates values retrieved from S&P Global.
- Where SEC document disclosures provided exact figures or ranges, citations are included in-line to the relevant 8-Ks and Exhibits.