Hyperscale Data, Inc. (GPUS)·Q4 2024 Earnings Summary

Executive Summary

• Preliminary FY 2024 revenue was $108.8M; implied Q4 2024 revenue is $21.58M calculated as FY minus 9M ($108.8M − $87.22M), with management highlighting a shift to a pure-play AI data center model by end-2025 .
• Sentinum contributed materially across 2024 via crypto mining and hosting, while Q3 showed 28% gross margin amid crypto mining headwinds and significant impairments, underscoring cost structure and volatility into Q4 .
• Strategic initiatives aim to expand data center power capacity from ~30 MW to ~340 MW, though management cautioned funding, regulatory, land rights and other uncertainties could delay or curtail the project .
• No Q4 earnings call transcript or Wall Street consensus estimates were available; stock reaction is likely to hinge on execution of AI infrastructure buildout, divestiture of ACG, balance sheet actions (reverse split, special dividend) and resolution of litigation risks .

What Went Well and What Went Wrong

What Went Well

• Strategic clarity: Management plans to divest Ault Capital Group and become a pure-play AI/HPC data center operator by Dec 31, 2025. CEO: “By focusing solely on AI-driven infrastructure, we believe Hyperscale Data will unlock tremendous value…we are confident in our ability to drive long-term growth” .
• Capacity ambition: Initiatives announced to increase Michigan data center power from ~30 MW to ~340 MW, positioning ACS for hyperscale AI workloads if executed .
• Segment contributions: Through 9M 2024, Sentinum generated $25.20M in crypto mining revenue and AGREE hotels $13.65M, with Circle 8 crane operations $36.95M, supporting diversified revenue streams as transformation progresses .

What Went Wrong

• Asset impairments: Q3 recognized $10.5M impairment on miners and $9.2M real estate impairments at AGREE, reflecting crypto difficulty/halving impacts and real estate valuation pressures .
• Liquidity strain and going-concern: As of Sept 30, 2024, cash was $7.19M (ex-restricted), working capital was negative $151.5M, and management disclosed substantial doubt about going concern without timely financing .
• Litigation overhang: Arena-related actions and other legal proceedings introduce uncertainty with potentially material adverse effects; losses not reasonably estimable at this stage .

Financial Results

Revenue, EPS, Margin vs Prior Quarter and Q4 (implied)

Notes: Q4 revenue is calculated from preliminary FY 2024 and reported 9M 2024; no Q4 EPS or margin disclosed in primary documents .

Segment Breakdown (Q3 2024)

KPIs (Operational Highlights)

Guidance Changes

No explicit Q4 quantitative revenue/EPS guidance was disclosed in the reviewed documents .

Earnings Call Themes & Trends

(No Q4 2024 earnings call transcript found; we searched earnings-call-transcript documents in Dec 2024–Apr 2025 and found none.)

Search note: We attempted to locate an earnings call transcript for Q4 2024 and found none in the document catalog [Search window Dec 2024–Apr 2025].

Management Commentary

• “By focusing solely on AI-driven infrastructure, we believe Hyperscale Data will unlock tremendous value…The Data Center is a cornerstone of this transformation, and we expect it to position us at the forefront of the AI revolution.” — CEO William B. Horne, preliminary FY 2024 release .
• Management reiterated risks to power capacity completion including funding, regulatory consents, and land rights, warning the project could be delayed or terminated if conditions are not met .

Q&A Highlights

• No Q4 2024 earnings call transcript was available. We searched for “earnings-call-transcript” documents for GPUS across Dec 2024–Apr 2025 and did not find a transcript; therefore, Q&A highlights and tone comparisons are unavailable.

Estimates Context

• We attempted to retrieve Wall Street consensus via S&P Global for Q4 2024 (EPS and revenue) but the request could not be completed due to a rate-limit error; estimates comparisons are therefore unavailable at this time. Values would be retrieved from S&P Global; unavailable due to API daily limit.

Key Takeaways for Investors

• Execution on the AI data center strategy and capacity expansion (from ~30 MW toward ~340 MW) is the primary narrative and potential stock catalyst; success depends on funding, regulatory approvals, and land rights .
• Liquidity/going-concern risks are material, with negative working capital as of Q3 and reliance on external financing; watch capital raises, asset sales (e.g., St. Petersburg property), and cash build in the segregated account .
• Crypto mining remains a headwind due to halving and higher difficulty, evidenced by Q3 impairments and margin pressure; diversification via hotels and crane operations partially offsets volatility .
• Capital structure actions (reverse split, special dividend of Class B) reflect shareholder and listing considerations; assess dilution and governance implications alongside preferred stock programs (Series D/E) .
• Litigation (Arena) introduces uncertainty; monitor developments for potential financial impact and any settlements .
• Near-term trading setup likely hinges on tangible milestones (power upgrade agreements, funding progress, ACG divestiture steps) and any quantification of AI colocation/hosting revenue ramp .
• With no available Q4 call transcript or consensus estimates, focus on FY preliminary disclosures and Q3 trends; update models once audited FY 2024 results and any guidance are published .

Sources

• Preliminary FY 2024 press release (8-K Item 2.02; Exhibit 99.1): revenue and strategic transformation, capacity targets, and project risks .
• Q3 2024 10-Q: financial statements, segment performance, gross margin, impairments, liquidity/going-concern, capital structure details, reverse split and special dividend .