The company’s fiscal first quarter, which concluded Aug. 31, saw revenue climb to $341.9 million from $80.9 million a year prior, significantly outpacing the $116.3 million analysts had anticipated. While the bottom line took a hit—resulting in a loss of 76 cents per share—the adjusted loss of 1 cent per share outperformed the 29-cent loss projected by FactSet analysts.

Driving this transition is a clear pivot in business strategy. The high-performance computing hosting division generated $262.6 million, dwarfing the $37.8 million produced by traditional data center hosting services. The latter, primarily tethered to cryptocurrency mining, remained flat year-over-year. Chief Executive Wes Cummins emphasized that the company is prioritizing long-term contracts with tier-one AI industry leaders to build sustainable, large-scale infrastructure. Investors responded positively to the results, nudging shares up 2.1% to $24.32 in after-hours trading.