Executive Summary

Preliminary Q2 2025 revenue was $25.8M, up 45% year-over-year versus $17.8M in Q2 2024; sequentially roughly flat versus Q1’s “surpassing $25 million” preliminary revenue .
Full-year 2025 revenue guidance was raised and reaffirmed to $125–$135M, with non-GAAP pro forma 2025 revenue potential of $155–$165M assuming Gresham Worldwide reconsolidation; Gresham is expected to contribute ~$10M in Q4 2025 revenue on reconsolidation .
Balance sheet strengthened: cash and restricted cash ~$27M and total assets ~$214M as of June 30, 2025; consolidated non-affiliated debt reduced by ~$25M YTD, which management frames as enabling Michigan AI campus expansion toward 340 MW .
Strategic catalysts: Michigan AI data center buildout plan (30 MW current; path to 70 MW in ~20 months and 340 MW in ~44 months from utility agreement) and natural-gas infrastructure design agreement for ~40 MW incremental on-site power; management highlights high-margin software and fintech recovery as additional growth drivers .

What Went Well and What Went Wrong

What Went Well

Q2 revenue growth of 45% YoY to $25.8M driven by lending/trading (Ault Lending), TurnOnGreen, and hotel asset performance: “We are growing revenue, reducing debt and building a foundation for scalable, high-margin software” — CEO William B. Horne .
Material deleveraging: “reduced debt by over $20 million year-to-date” (Aug 4) and “approximately $25 million year-to-date” (Aug 8), improving capital structure and flexibility ahead of AI data center expansion .
Visibility into 2025 and beyond: reaffirmed FY25 revenue guidance of $125–$135M and reconsolidation path for Gresham Worldwide (court approval; expected emergence Oct 1), with anticipated contribution to revenue profile .

What Went Wrong

Limited disclosure: No EPS, margin, or detailed segment revenue provided in Q2 materials; figures are preliminary and unaudited pending the 10-Q, constraining estimate benchmarking and margin analysis .
Timing and execution risk: Michigan power upgrade and 340 MW buildout depend on definitive utility agreements, financing, and regulatory approvals; plan spans 44 months from agreement execution, delaying near-term contribution to revenue .
Bankruptcy/reconsolidation risk: Prior deconsolidation of defense unit (Giga‑tronics/Gresham) due to Chapter 11; while reconsolidation is anticipated, there is no assurance of success, introducing uncertainty into pro forma outlook .

Financial Results

Revenues vs Prior Year and Prior Quarter

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$17.8	$25.0+ (“surpassing $25M”)	$25.8
YoY Growth (%)	—	—	45%
Sequential Commentary	—	—	Roughly flat vs Q1 preliminary (“surpassing $25M”)

Actuals vs S&P Global Consensus

Metric	Q2 2025 Actual	Q2 2025 Consensus	Delta
Revenue ($USD Millions)	$25.8	n/a*	n/a*
Primary EPS ($USD)	Not disclosed	n/a*	n/a*

Balance Sheet and Liquidity KPIs

KPI	Q2 2025	Notes
Cash & Restricted Cash ($USD Millions)	~$27	Preliminary, unaudited as of June 30, 2025
Total Assets ($USD Millions)	~$214	Preliminary, unaudited as of June 30, 2025
Debt Reduction YTD ($USD Millions)	>$20 (Aug 4) ; ~$25 (Aug 8)	Consolidated non‑affiliated debt reduction

Segment and Driver Snapshot (Qualitative)

Segment/Driver	Q2 2025 Commentary	Revenue Detail
Ault Lending (commercial lending/trading)	Led Q2 revenue momentum	Not disclosed
TurnOnGreen (power solutions)	Greater demand cited	Not disclosed
Hotel assets (Ault Global Real Estate Equities)	Improved performance	Not disclosed
High-margin software (blockchain/tokenization/DApps)	Expected recurring revenue beginning late 2025	Not disclosed

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue (GAAP)	FY 2025	$115–$125M (May 5)	$125–$135M (July 17; reaffirmed Aug 22)	Raised
Gresham Worldwide contribution (GAAP)	Q4 2025	n/a	~$10M (Q4)	New detail
Revenue (Pro Forma, non‑GAAP)	FY 2025	n/a	$155–$165M (assuming Gresham consolidated Jan 1)	New disclosure
Michigan AI campus contribution	FY 2025	n/a	Not expected to contribute significantly in 2025	Clarified

Earnings Call Themes & Trends

Note: A Q2 2025 earnings call transcript was not available in the document catalog; themes reflect Q2 press releases and 8‑K disclosures.

Topic	Previous Mentions (Q4 2024 and Q1 2025)	Current Period (Q2 2025)	Trend
AI/HPC data center buildout (Michigan)	Plan to expand to ~340 MW; 300 MW utility agreement in principle (Q4 prelims)	Phased roadmap: 30 MW current; path to 70 MW in ~20 months; 340 MW in ~44 months from utility agreement; $125M shelf filed for flexibility	Execution milestones advancing; timeline clarified
Natural gas/on‑site generation	n/a	SEMCO engineering design agreement for ~40 MW on‑site power; 15‑month construction post definitive agreement	Infrastructure design initiated
Balance sheet & capital structure	n/a	Cash ~$27M; assets ~$214M; debt reduced >$20M (Aug 4) and ~$25M YTD (Aug 8)	Liquidity improved; leverage reduced
Software/blockchain/tokenization	n/a	Expected recurring, high‑margin revenue starting late 2025	Pipeline building
Reconsolidation (Gresham/Giga‑tronics)	Deconsolidated in 2024 due to Chapter 11	Court approval; emergence expected Oct 1, reconsolidation anticipated; FY25 guidance reaffirmed	Visibility improved; execution pending
Fintech recovery	n/a	Fintech platforms rebounded in Q2 with new AI‑powered features under development	Early signs of recovery

Management Commentary

“We are growing revenue, reducing debt and building a foundation for scalable, high-margin software to become a core pillar of our business. Gresham Worldwide’s return is expected to significantly enhance our revenue profile going forward.” — William B. Horne, CEO (Q2 preliminary revenue release) .
“Our second-quarter results reflect continued execution and strong financial discipline. We have reduced debt by over $20 million year-to-date... We are seeking to establish Hyperscale Data as a differentiated platform at the intersection of AI infrastructure and blockchain-based treasury innovation.” — Milton “Todd” Ault III, Executive Chairman (Aug 4) .
“Reducing our debt by $25 million is... a strategic step toward unlocking our full potential to become a leading AI infrastructure company... allows us to move more decisively as we execute on key initiatives, including power expansion...” — Milton “Todd” Ault III (Aug 8) .
“We are reaffirming our revenue outlook for the year with confidence... our software initiatives remain on track... Although our growth initiatives planned for our Michigan data center are not expected to contribute significantly to revenue in 2025...” — William B. Horne, CEO (Aug 22) .
“We are building a scalable, AI-centric digital infrastructure platform... our Michigan campus positions us to scale efficiently and profitably to meet that demand.” — William B. Horne, CEO (July 21) .

Q&A Highlights

A Q2 2025 earnings call transcript was not available in the document catalog; no Q&A content to evaluate. Coverage relies on Q2 press releases and 8‑K disclosures .

Estimates Context

S&P Global consensus estimates for Q2 2025 revenue and EPS were unavailable; actual Q2 revenue was $25.8M (+45% YoY). Given the raised FY25 guidance to $125–$135M and planned reconsolidation of Gresham (~$10M in Q4; pro forma $40M annualized), Street models may need upward adjustments to FY25 revenue, with limited near-term changes to margin assumptions until the 10‑Q provides detail .

Key Takeaways for Investors

Momentum with fiscal discipline: 45% YoY revenue growth alongside ~$25M YTD debt reduction improves flexibility for AI campus investments .
Guidance raised and reaffirmed: FY25 revenue outlook at $125–$135M with visibility on Q4 contribution from Gresham; non‑GAAP pro forma scenario highlights 2025 revenue potential if reconsolidated earlier .
Infrastructure milestones: Michigan roadmap to 340 MW and SEMCO gas infrastructure design for ~40 MW indicate tangible progress, though contributions are weighted beyond 2025 .
High‑margin software optionality: Tokenization/blockchain applications expected to begin recurring revenue in late 2025, potentially improving mix and margins over time .
Near-term trading lens: Catalysts include formal reconsolidation of Gresham (Oct 1), monthly digital asset updates, and additional Michigan utility agreements; absence of EPS/margin disclosure until the 10‑Q is a gating factor for multiple expansion .
Medium-term thesis: Pure‑play transition to AI/HPC data centers plus software flywheel, supported by improving balance sheet and capital access (shelf), positions the story for scalability with execution risks around utility contracts, funding, and timelines .

S&P Global disclaimer: Values marked with an asterisk (*) were retrieved from S&P Global and consensus was unavailable via the feed at the time of query.

Hyperscale Data, Inc. (GPUS)·Q2 2025 Earnings Summary