Total Revenue

+523% (Q1 2025: ~$98.959M vs. Q1 2024: ~$15.89M)

Total Revenue surged dramatically driven by a massive jump in procurement and integration services. Procurement grew to $90.177M (up 676% YoY) and integration grew to $7.484M (up 253% YoY), benefiting from robust federal orders and the expansion of AI-enabled rack integration that built on previous modest volumes, reflecting a strong external demand for AI infrastructure and internal strategic initiatives. " " " " "

Procurement Services

+676% (Q1 2025: ~$90.177M vs. Q1 2024: ~$11.62M)

Procurement Services experienced a runaway increase driven by a significant uptick in federal government purchases and a shift from net to gross deals. Compared to the previous period’s modest figures, enhanced procurement volumes and the recording of full transaction values helped propel this segment’s YoY growth, despite relatively lower margins. " "

Integration Services

+253% (Q1 2025: ~$7.484M vs. Q1 2024: ~$2.12M)

Integration Services grew substantially due to the ramp-up in AI-enabled rack integration and the benefit of a multi‐year agreement with a key customer. Building on more limited activity in Q1 2024, the expanded and contractually secured volume contributed to higher revenues and improved gross margins, reflecting both strategic investment and market demand. " "

Facilities Revenue

-40% (Q1 2025: ~$1.298M vs. Q1 2024: ~$2.15M)

Facilities revenue declined sharply compared to the previous period, indicating a possible seasonal downturn or a strategic shift in focus. While FY 2024 saw steady but modest growth (up 13% YoY on an annual basis), Q1 2025 experienced a drop likely due to reduced maintenance, equipment sales, and deployment-related activities relative to prior quarters. " " " "

Operating Cash Flow

Turned positive (Q1 2025: ~$20,637K vs. Q4 2024: -$21,649K)

Operating cash flow shifted from negative to strongly positive as a result of improved collections and timing effects from the procurement factoring program. The increased cash collections from AI rack integration and deferred vendor payments, compared to the previous period’s cash outflows, materially improved the cash conversion cycle. " "

Net Income

+56% (Q1 2025: ~$2,979K vs. Q1 2024: ~$1,913K)

Net Income improved notably due to strong revenue performance—especially in procurement and integration segments—and effective cost management. The combined impact of a significant revenue and gross profit expansion, along with modest increases in operating expenses, contributed to higher profitability year-over-year from the previous quarter. " "

Total Assets

Increased (Q1 2025: ~$113,539K vs. Q4 2024: ~$94,289K)

Total assets strengthened due to higher cash balances and substantial capital investments in property and equipment. The improvement also included growth in inventories and other current assets, even as contract receivables declined, reflecting an ongoing expansion and operational investment compared to the previous period. " "

Stockholders’ Equity

Increased (Q1 2025: ~$9,391K vs. Q4 2024: ~$7,138K)

Stockholders’ equity rose significantly as a result of higher net income, additional contributions from stock-based compensation and the exercise of stock options, which more than offset reductions from treasury stock repurchases. This improvement builds on the equity foundation established in previous periods and signals enhanced financial stability. " "

Adjusted EBITDA

FY 2025

Adjusted EBITDA is expected to be at least 50% higher than in FY 2024 "

Full-year 2025 adjusted EBITDA to be at least 50% higher than the adjusted EBITDA for the full year of 2024 " "

no change

Revenue

FY 2025

Total revenue is expected to exceed the total revenue of the second half of FY 2024 "

Total revenue in the first half of 2025 will exceed revenue in the second half of 2024 "

no change

Capacity Expansion & Scalability

Q2–Q4 discussions focused on investing in new facilities, expanding capacity and addressing legacy facility risks. For example, Q4 detailed enhanced power capacity and design improvements " " , Q3 outlined relocation plans and 10x growth ambitions " " , and Q2 emphasized capital investments and operational capacity expansion. " "

In Q1 2025, management detailed the Georgetown facility’s specifics with 6 MW (upgradable to 15 MW) capacity, clear scalability plans for AI rack integration, and strategies to mitigate legacy facility costs. " " " "

Consistent focus with continued positive sentiment; facility investments and operational strategies have been refined over time.

Demand Visibility & Order Pipeline

Across Q2–Q4, calls emphasized short‑term challenges, improved near‑term forecasts, and persistent long‑term forecasting uncertainty. Q3 mentioned a long‑term agreement improving revenue visibility. " " " "

Q1 2025 highlighted improved near‑term forecasts (90 days to 5 months visibility) while noting challenges from tariffs and tech uncertainties that might disrupt order processing. " " "

Robust near‑term pipeline consistently, but long‑term uncertainties remain; overall outlook remains optimistic despite external headwinds.

AI Infrastructure & Modular Data Centers

Q2–Q4 discussions underscored rapid growth in AI rack integration—Q4 reported 264% YoY growth and Q3 stressed multiyear agreements—while noting that the modular data centers (MDCs) segment is evolving, offering high margins but modest revenue. " " " "

Q1 2025 reported 253% YoY growth in AI rack integration revenue with the new facility coming online, while MDC revenue declined year‑over‑year yet the long‑term outlook for high‑margin opportunities remains optimistic. " " "

Optimistic growth in AI rack integration continues, while MDC business shows evolving dynamics with potential high‑margin opportunities.

Customer Diversification vs. Key Customer Dependency

In Q2, executives referenced confidentiality regarding revenue sources (such as Dell) " " , and Q3 emphasized dependency on a primary customer through long‑term agreements. " " Q4 did not specifically address diversification.

Q1 2025 highlighted measured efforts to diversify revenue streams while maintaining trusted, strategic relationships (e.g. with Dell), aiming to supplement existing partnerships without disrupting them. "

Increasing acknowledgment of reliance on key customers with cautious, incremental steps toward broader diversification.

Operational & Facility Management Risks

Q2 provided minimal discussion, but Q3 highlighted relocation plans, subleasing options, and power constraints. " " Q4 discussed subleasing uncertainties, move‑in costs (including one‑time severance) and capital expenditure pressures. " "

Q1 2025 addressed dual‑facility transitional costs (e.g. non‑cash rent and legacy facility challenges), subleasing uncertainties, and high capital expenditures for the new Georgetown facility, with management outlining strategies to offset these costs. " " "

Ongoing concerns over dual‑facility risks and transitional costs persist, with strategic measures increasingly put in place to mitigate these operational pressures.

Financial Margin Pressures

Q2 showed a shift to higher‑margin segments following a decline in procurement revenue " ; Q3 detailed how a surge in lower‑margin procurement diluted overall margins " " , while Q4 noted improved consolidated margins boosted by systems integration. "

Q1 2025 focused on the impact of lower‑margin procurement diluting overall margins, but also highlighted improving systems integration margins (when adjusted for non‑cash costs) with expectations for margin improvement in later quarters. " " "

Margin pressures remain mixed as revenue mix challenges persist, although improved margins in higher‑yield segments offer optimism for future performance.

Power Availability & Infrastructure Constraints

Q2 emphasized rapidly increasing power density (from 10–15 kW to as high as 200 kW per rack) that stressed current facilities, and discussed exploring alternative sources. " " " " " Q3 focused on local initiatives (like a new substation and strong city relationships) " " and Q4 detailed major facility power upgrades and cooling adjustments. "

Q1 2025 stressed power availability as critical, detailing the Georgetown facility’s 6 MW capacity (to be increased to 15 MW) to meet the demanding needs of AI rack integration, underscoring the strategic importance of robust power infrastructure. " "

Persistent critical challenge driving strategic facility investments; focus remains on overcoming power constraints to support growing AI demands.

Technological Innovation & Adaptation

Q2 discussed preparations for increased direct liquid cooling (DLC) capacity due to evolving rack power needs. " Q3 emphasized expanding DLC capacity with dual cooling methods and adapting facilities for advanced AI infrastructure. " " Q4 detailed facility design changes to support a shift from air cooling to DLC. " "

Q1 2025 emphasized accelerated adoption of DLC, noting that the new facility is purpose‑built to handle evolving AI infrastructure requirements, including the growing complexity and power needs of advanced racks. "

A continuous, proactive push to innovate—particularly with DLC adoption—ensures the company remains ahead of evolving AI infrastructure demands.

Transparency & Confidentiality Concerns

Q2 was explicit about maintaining confidentiality—refusing to disclose detailed revenue sources or partner information. " " " Q3 began to provide more granular revenue breakdowns while safeguarding sensitive contractual details, and Q4 included brief references to confidentiality (e.g. around severance figures). "

Q1 2025 maintained a cautious stance regarding disclosure of specific revenue figures and contractual relationships, emphasizing the importance of trusted customer relationships and careful communication. " "

A steady emphasis on safeguarding proprietary and contractual details persists, even as efforts are made to increase investor transparency.