Hyperscale Data Reports Preliminary Q3 Revenue of About $40 Million, Up 64%

Where the growth came from

The company said the increase reflects stronger contributions from several businesses across its portfolio. It also stressed that the figures have not been audited or reviewed by its independent auditor.

The preliminary segment highlights, as reported by Hyperscale Data, are:

• Crane operations: approximately $12.2 million, up approximately 26% from $9.7 million in the prior-year quarter.
• Defense: approximately $12.4 million, compared to $1.7 million a year earlier. The company attributes this to the inclusion of Gresham Worldwide, Inc. following its reconsolidation.
• Lending and trading: approximately $4.7 million, compared to approximately $0.1 million in the prior-year quarter. This includes investment gains and interest and dividend income.
• Other revenue: approximately $1.4 million, up approximately 57% from $0.9 million, including contributions from software supporting blockchain network operations.

These gains were partially offset by lower Bitcoin mining revenue during the quarter, the company said.

Management comments and caveats

William B. Horne, Chief Executive Officer of Hyperscale Data, said the company is "encouraged by the contributions across our portfolio, including continued growth in our crane business and stronger results from lending and software-related activities." He added that as the company advances "the Michigan AI data center opportunity," it remains focused on "disciplined execution and developing the value of our individual businesses."

Milton "Todd" Ault III, Executive Chairman, said he was "extremely pleased to see our individual business segments growing."

The company cautioned that the estimate reflects management's current assessment and remains subject to completion of quarter-end financial closing procedures and review. Actual results may differ materially, and the announcement does not present a complete assessment of third-quarter results.

Company structure and planned divestiture

Through its subsidiary Sentinum, Inc., Hyperscale Data owns and operates a data center offering colocation and hosting services for emerging AI ecosystems and other industries. Another wholly owned subsidiary, Ault Capital Group, Inc. (ACG), is described as a hybrid private equity firm and operating company with interests across financial services, digital assets, industrial services, hospitality and defense technologies, among other sectors.

Hyperscale Data currently expects the divestiture of ACG to occur in 2027. Afterward, the company would be an owner and operator of data centers supporting high-performance computing services, as well as a holder of digital assets and of its third wholly owned subsidiary, Omnipresent Robotics, LLC.

The divestiture is to occur through a voluntary exchange of Series F Exchangeable Preferred Stock for shares of ACG Class A and Class B Common Stock. The company reminded stockholders that only holders who agree to surrender their Series F shares, and do not properly withdraw that surrender in the exchange offer, will receive ACG shares and become ACG shareholders.

What it means for investors

The preliminary numbers show most of the quarter's revenue still coming from non-data-center businesses, such as cranes and defense, which are held through ACG and slated for divestiture in 2027. The company points to the Michigan AI data center opportunity as its focus going forward. Because the figures are unaudited and subject to change, investors are directed to the company's public filings on hyperscaledata.com and www.sec.gov for fuller results.