WhiteFiber Inc (WYFI) Price

WhiteFiber Reports Robust Revenue Growth Amid Operating Loss Post-Spinout

WhiteFiber's Revenue Advances, Operating Expenses Surge Post-IPO WhiteFiber, Inc. (NASDAQ: WYFI), a provider of AI infrastructure and high-performance computing (HPC) solutions, announced its financial results for the second quarter ended June 30, 2025. The company reported a significant 48% year-over-year increase in revenue, reaching $18.7 million. However, this top-line growth was accompanied by a considerable operating loss, largely attributed to surging General & Administrative (G&A) expenses in its first quarter as a standalone public entity following its spinout from Bit Digital, Inc. (NASDAQ: BTBT). Second Quarter Performance Details WhiteFiber's second-quarter revenue of $18.7 million represented a robust advance, with its cloud services segment contributing $16.6 million, a 33% increase year-over-year, and maintaining a gross margin of 61%. Colocation services added $1.7 million with a 60% gross margin. Total gross profit for the quarter stood at $11.5 million, an increase from $8.0 million in the prior-year period. Despite this, the company reported an operating loss of $9.16 million, a stark reversal from an operating profit of $2.41 million in the second quarter of 2024. This was primarily driven by a dramatic 1126.9% year-over-year surge in G&A expenses, which totaled $15.48 million. Key components of this expense spike included approximately $6.5 million in share-based compensation, $1.3 million in salaries and bonuses, and $5.7 million in consulting fees, with some costs identified as non-recurring or related to the company's transition to a public entity. The Initial Public Offering (IPO) on August 8, 2025, saw shares priced at $17 per share, raising approximately $183 million in gross proceeds. Market Response and Underlying Factors Despite the reported operating loss, WhiteFiber's stock price (WYFI) advanced by 12.82% to $26.41 on September 19, 2025, significantly above its IPO price. This positive market reaction indicates investor optimism regarding the company's strategic positioning and future growth trajectory within the burgeoning Artificial Intelligence (AI) infrastructure sector. Analysts suggest that the market views the substantial increase in G&A expenses as largely attributable to one-time costs associated with the IPO and strategic investments for future expansion, rather than a fundamental flaw in the business model. The company's valuation, at an 11.5x forward sales multiple, reflects expectations of continued high growth. Strategic Expansion and Broader Implications WhiteFiber is actively pursuing expansion to capitalize on the "exceptionally strong demand for AI infrastructure," as noted by CEO Sam Tabar. During the second quarter, the company acquired a one-million-square-foot data center property in North Carolina (NC-1), with initial pre-construction phases on track for completion in the first quarter of 2026. Additionally, the deployment of wafer-scale systems for Cerebras under a 5MW IT load contract commenced, with revenue expected to begin in the fourth quarter of 2025. To support these initiatives, WhiteFiber secured a debt facility with Royal Bank of Canada for up to CAD $60 million, providing additional balance sheet flexibility. Bit Digital, which spun out WhiteFiber, retains approximately 71.5% ownership. Some analysts propose that Bit Digital could serve as a value proxy for investors seeking exposure to WhiteFiber, suggesting that BTBT may offer a discounted entry point to WhiteFiber's assets. Analyst Perspectives and Outlook Following the earnings report, Wall Street analysts largely maintained a positive stance on WhiteFiber. Needham reiterated a "Buy" rating with a $34 price target, anticipating that the elevated G&A costs will moderate. Roth Capital also maintained a "Buy" rating and increased its price target to $28. Other firms, including Macquarie and B. Riley Securities, initiated coverage with "Outperform" or "Buy" ratings, setting price targets ranging from $25.00 to $34.00. The consensus rating for WYFI shares is a "Moderate Buy," with an average target price of $29.80. This sentiment underscores confidence in WhiteFiber's position as a "pure-play provider" in the high-growth AI infrastructure market. Forward Outlook The market's focus will likely shift to WhiteFiber's ability to normalize its G&A expenses and demonstrate a path towards operational profitability in subsequent quarters. The successful completion of data center expansions and the realization of revenue from new contracts, such as the Cerebras deployment, are critical factors for sustained growth. The continued robust demand for AI and HPC solutions is expected to provide a strong tailwind for WhiteFiber, with investor attention on how effectively the company can leverage its expanded infrastructure and manage its operational costs to convert significant revenue growth into consistent earnings.