The quarter beat the standing revenue bar. Management had guided to roughly $194 million of Q2 core revenue, while the filing delivered $209.9 million—about 8% above guidance—with published expectations near $174 million.
| Metric | Q2 2026 | Q2 2025 / prior expectation |
|---|---|---|
| Core revenue | $209.9M (Core revenue table) | ~$194M company guidance |
| GAAP revenue | $180.1M (Income Statement) | $103.3M |
| Cloud and other services revenue | $127.7M (Core revenue table) | $33.0M |
| Core gross margin | 40.6% (Core gross margin table) | 31.2% |
| Core operating loss | $(33.6)M (Core operating loss table) | $(43.9)M |
| Adjusted EBITDA | $(53.1)M (Adjusted EBITDA table) | $(38.3)M |
| Core net loss | $(6.9)M (Core net loss table) | $(40.5)M |
| GAAP net loss | $(450.5)M (Income Statement) | $309.5M |
Cloud is driving the upside, not hardware. Core cloud and services revenue reached $127.7 million, nearly four times the year-ago figure, while core hardware revenue rose to $82.1 million from $70.3 million. That mix shift supports the growth narrative, although cloud remains dependent on securing and funding substantial data-center capacity (Core revenue table; Data Center Capacity Expansion).
Underlying operating performance improved, but the accounting headline deteriorated sharply. Core gross margin rose to 40.6% from 31.2%, and core operating loss narrowed to $33.6 million from $43.9 million. However, adjusted EBITDA worsened to a $53.1 million loss from a $38.3 million loss, while GAAP net loss reached $450.5 million. The main distortion is $377.0 million of quarterly stock-based compensation, alongside $44.3 million of customer-warrant amortization (Adjusted EBITDA table; Core net loss table; Income Statement).
The beat changes the growth picture more than the profitability picture. The company exited June with $7.4 billion of cash, cash equivalents, and restricted cash after IPO and financing proceeds, and cited $25.4 billion of remaining performance obligations (Balance Sheet; Cash Flow statement; management commentary). That provides substantial funding for expansion, but operating cash flow remained negative by $47.5 million year to date and the company added roughly $918 million of working-capital loans (Cash Flow statement; Balance Sheet). Net: a genuine revenue beat versus an already elevated guide, with improving core margins, but profitability and dilution remain the central execution risks.
Read the original 8-K on SEC EDGAR ↗