HIVE Digital Technologies Ltd.

For fiscal Q1 2027, HIVE reported revenue of $79.1 million versus $45.6 million in the prior-year quarter, up about 73% year over year. Gross operating margin was $24.2 million versus $15.8 million a year ago, and adjusted EBITDA was $13.4 million versus $44.6 million last year. GAAP net loss was $142.9 million, reflecting an $84.7 million noncash Swedish VAT provision, $53.7 million of depreciation, $7.1 million of share-based compensation, and fair value adjustments. Sequentially, revenue rose about 10% from $71.8 million, gross operating margin increased from $17.5 million, and adjusted EBITDA improved from negative $9 million. Management did not provide formal next-quarter revenue or EPS guidance, but said GPU cloud ARR is about $35 million today, contracted revenue is $180 million, and the company is still targeting $200 million ARR by year-end; it also flagged a Boden HPC colo LOI that could add $45 million ARR if finalized.

Aydin Kilic framed the quarter as evidence that HIVE’s dual-engine strategy is working: Bitcoin mining remains the cash engine today, while HPC is becoming a larger growth driver. He emphasized that the company is scaling from a roughly $20 million ARR GPU cloud run rate to $35 million today, with more growth expected as the Bell Merritt GB300 deployment and other contracts come online. His tone was upbeat and operationally focused, repeatedly pointing to cash generation, contracted revenue, and financing discipline.

Darcy Daubaras highlighted that the quarter was strong operationally despite the GAAP loss. He cited $79.1 million of revenue, $24.2 million of gross operating margin, positive adjusted EBITDA of $13.4 million, and $208 million of cash at June 30 versus about $23 million at March 31. He also noted approximately $280 million of current assets against about $143 million of current liabilities, and said the cash build was driven by the exchangeable senior note offerings and ATM proceeds. The Swedish matter remained the key noncash drag, with an $84.7 million provision and $53.7 million of depreciation.

In the main analyst question, Joe Vafi asked about the economics and financing of the new 5-year GPU cloud deal, including implied IRR and remaining capital stack needs. Aydin Kilic said CapEx is about $185 million for the cluster, EBITDA should land in the 75% to 80% range, and the GPUs could be paid off in about 3 years, implying roughly a 1.6x return; he also said about 20% of GPU cost is being put down and that the recent converts helped secure purchase orders. Vafi then asked about the next steps in Paraguay, but the transcript cuts off before management’s full answer.