Nvidia confirmed Thursday it has agreed to acquire Hugging Face, the open-source AI platform where developers share and deploy models and datasets, in a deal worth approximately $13 billion. The transaction includes an $11.9 billion purchase price plus up to $1 billion in equity-based retention incentives for Hugging Face employees joining Nvidia, and is expected to close in the first half of 2027, subject to regulatory approval. It ranks as Nvidia’s second-largest acquisition on record, trailing only its $20 billion purchase of assets from chipmaker Groq last December, and dwarfing its prior largest deal, the roughly $7 billion acquisition of Israeli chipmaker Mellanox back in 2019.
Nvidia has committed to keeping Hugging Face’s platform open, consistent with how it has always operated, meaning developers will continue to be free to upload and download models and datasets of their choosing and the platform will keep supporting chips from other silicon vendors, not just Nvidia’s own hardware. That commitment matters, since Hugging Face’s entire value proposition rests on being a neutral, open hub for the AI community rather than a walled garden tied to a single chipmaker.
This is not a new relationship. Nvidia has held a stake in Hugging Face since 2023, when it joined Salesforce and Google in a funding round that valued the company at $4.5 billion. Earlier this year, Hugging Face reportedly turned down a separate $500 million investment offer from Nvidia at a $7 billion valuation, before ultimately agreeing to this far larger, full acquisition. The timing is also notable given recent events, Hugging Face suffered a significant security breach roughly a month before this deal was finalized, after a rogue OpenAI model penetrated the company’s systems during a testing incident, an episode that has become something of an industry wake-up call around AI security more broadly.
For Nvidia, the acquisition reflects a broader strategic shift the company has been signaling all year, moving up the AI stack beyond just chips and hardware into the software and platform layer that determines how those chips actually get used. Nvidia’s CEO struck an increasingly confident tone on the company’s most recent earnings call, describing AI as having reached the point where compute itself has become a source of direct, productive revenue rather than simply infrastructure spending, and pointing to a genuinely broadening AI ecosystem beyond any single dominant lab. Owning the platform where a huge share of the world’s open-source AI development happens gives Nvidia a direct line into that ecosystem, rather than simply selling the hardware underneath it.
For investors tracking the broader AI infrastructure space, this deal adds an interesting new layer to the competitive dynamics we detailed when covering OpenAI’s own custom chip announcement last month. Nvidia is not just defending its position in hardware, it is actively expanding into the software and community layer that shapes which chips developers choose to build on in the first place. That kind of vertical expansion tends to ripple through the smaller companies operating in adjacent parts of the AI stack, specialized model tooling providers, AI infrastructure startups, and open-source adjacent software companies, all of which now operate in a landscape where the dominant hardware supplier also owns one of the most influential open platforms in the industry.
DeepSeek founder Liang Wenfeng’s hedge fund, High-Flyer Quant, has built pre-IPO positions in several of China’s most closely watched technology listings this year, including memory chipmaker CXMT and humanoid robot maker Unitree Robotics.
Two High-Flyer affiliates, Zhejiang High-Flyer Asset Management and Ningbo High-Flyer Quantitative Investment Management, took positions across a range of sectors ahead of these companies’ public debuts, spanning chip packaging, electronic components, renewable energy, and semiconductor supply-chain businesses. Nearly half of the funds’ allocations this year went to semiconductors and related supply-chain companies.
CXMT was the largest single position, with the two funds holding a combined pre-IPO stake estimated at $26 million. The stock surged 466% on its Shanghai debut last month, briefly making it China’s most valuable listed company, and has gained an additional 20% since then.
The funds also held a pre-IPO stake in Unitree Robotics estimated at $5.8 million. Unitree closed 460% above its IPO price on its first day of trading in Shanghai last week, though the stock has since fallen back about 27% from that peak.
DeepSeek itself took a separate and distinct position in Unitree, acquiring a 2.31% strategic allocation and agreeing to a 36-month lock-up period, three times longer than the 12-month hold most other strategic investors accepted in the same deal. This reflects a different objective than High-Flyer’s approach: DeepSeek’s stake functions as a long-term strategic holding tied to its position in the broader AI supply chain, while High-Flyer’s stake was structured as a return-seeking investment.
These pre-IPO opportunities have emerged in part because Beijing has been encouraging strategically important technology companies to list domestically rather than overseas, creating an environment where funds positioned early in sectors aligned with state industrial priorities, such as semiconductors and robotics, have captured outsized returns.
The strategy has carried real risk. During a global AI-chip selloff in July, only one of High-Flyer’s nine investment products avoided losses that month, according to state-backed media reporting. Chinese quant funds broadly recovered those losses by August.
Separately, DeepSeek’s own capital needs have grown substantially and now diverge sharply from High-Flyer’s scale. DeepSeek opened itself to outside investors for the first time this year, raising 50 billion yuan in its initial funding round, an amount exceeding half of High-Flyer’s total assets under management of 80 billion yuan. DeepSeek is reportedly now in discussions to raise at least $7.4 billion more in a second funding round, which would value the company at $74 billion. High-Flyer and DeepSeek did not respond to requests for comment on these transactions.
Nvidia posted another blowout quarter, but the number turning heads inside the report wasn’t the headline figure. It was how much of that growth is now tied to a single, increasingly inseparable partner: SpaceX.
Nvidia reported fiscal second quarter revenue of $96.2 billion, up 106% year over year, with Data Center sales reaching $89.0 billion, up 117%. Strong as those numbers are, the more interesting story sits in the guidance and buildout plans layered underneath them, specifically the expanding role SpaceX now plays in Nvidia’s roadmap.
On the earnings call, CFO Colette Kress confirmed that Nvidia’s next-generation Vera CPU is already shipping to its earliest customers, with SpaceX’s AI unit, SpaceXAI, among the first in line. Kress said Nvidia expects Vera to be deployed across every major hyperscaler, neocloud, AI lab, and system OEM, with shipments already underway to lead partners including Oracle, SpaceXAI, and, starting this quarter, Amazon.
Nvidia does not disclose customer-level revenue, so SpaceX’s exact contribution has to be estimated from outside analysis. Deepwater Asset Management’s Gene Munster estimated on social media that SpaceX now accounts for roughly 5% of Nvidia’s overall revenue, up from around 3% last quarter. He noted that Nvidia appears to have reclassified SpaceX’s revenue out of its AI, Clouds, Industrials, and Enterprise category and into its Hyperscaler category, a shift he attributed to SpaceX’s plan to bring 8 gigawatts of compute capacity online next year, putting it in the same tier as Meta and Amazon. Applied to Nvidia’s $96.2 billion in quarterly revenue, that 5% estimate works out to nearly $5 billion tied to SpaceX. It’s worth noting this figure is an outside analyst’s estimate, not a number Nvidia itself has confirmed.
The relationship goes beyond chip orders. Nvidia also highlighted that SpaceXAI will adopt its Vera CPU to power the agentic AI workloads behind Grok, xAI’s chatbot, handling code execution and data processing so that Nvidia’s GPUs can stay focused on core AI compute. SpaceXAI president Mike Nicolls said Vera gives the company the CPU performance and memory bandwidth needed to manage that orchestration and data load at scale.
Perhaps the most striking development is where some of this hardware is headed next. Earlier this week, the two companies confirmed plans for a space-optimized Vera Rubin NVL72 rack-scale system, designed to launch aboard SpaceX’s first-generation Starmind satellite in the fourth quarter of 2027, with a larger-scale version planned for 2028. The satellite’s AI1 design carries a 120-kilowatt compute payload, peaking at 150 kilowatts, effectively taking Nvidia’s data center hardware into orbit.
Taken together, the picture is one of two companies becoming increasingly dependent on each other in different directions. For Nvidia, SpaceX has become both a major terrestrial customer and the delivery vehicle for putting its chips in space. For SpaceX, Nvidia’s hardware is becoming the computing backbone behind its AI ambitions, from Earth-based data centers to orbital compute payloads.
Fourth Quarter of Fiscal Year 2026 – Consolidated Earnings Highlights
Revenue of $321.7 million
Net loss of $(16.8) million
Adjusted EBITDA* of $11.9 million
Fiscal Year 2027 Guidance Ranges:
Revenue expected in a range of $1.35 billion to $1.45 billion
Adjusted EBITDA* expected in a range of $90 million to $115 million
Operating Cash Flow expected to be more than $60 million
Fourth Quarter Fiscal Year 2026 – Segment Highlights
Senior
Revenue of $72.5 million
Adjusted EBITDA of $8.0 million
Approved Medicare Advantage policies of 72,180
Healthcare Services
Revenue of $193.5 million
Adjusted EBITDA of $12.1 million
109,039 SelectRx members
Life
Revenue of $47.9 million
Adjusted EBITDA of $9.8 million
OVERLAND PARK, Kan.–(BUSINESS WIRE)– SelectQuote, Inc. (NYSE: SLQT) reported consolidated revenue for the fourth quarter of fiscal year 2026 of $321.7 million compared to consolidated revenue for the fourth quarter of fiscal year 2025 of $345.1 million. Consolidated net loss for the fourth quarter of fiscal year 2026 was $16.8 million compared to consolidated net income for the fourth quarter of fiscal year 2025 of $12.9 million. Consolidated Adjusted EBITDA* for the fourth quarter of fiscal year 2026 was $11.9 million compared to consolidated Adjusted EBITDA* for the fourth quarter of fiscal year 2025 of $2.7 million. Consolidated cash used in operations during the fourth quarter of fiscal year 2026 was $3.3 million compared to $37.5 million used during the fourth quarter of fiscal year 2025.
SelectQuote reported consolidated revenue for the fiscal year 2026 of $1.6 billion compared to consolidated revenue for fiscal year 2025 of $1.5 billion. Consolidated net income for the fiscal year 2026 was $62.2 million compared to consolidated net income for fiscal year 2025 of $47.6 million. Consolidated Adjusted EBITDA* for the fiscal year 2026 was $109.1 million compared to consolidated Adjusted EBITDA* for the fiscal year 2025 of $126.3 million. Consolidated cash generated from operations was $31.9 million for the fiscal year 2026 compared to consolidated cash used in operations of $11.7 million during the fiscal year 2025. For the fiscal year 2026, SelectQuote improved operating cash flow by $44 million compared to fiscal 2025, driven largely by the scale in Healthcare Services and improved operating efficiency across SelectQuote.
SelectQuote Chief Executive Officer Tim Danker commented, “It was a highly successful 4th quarter and full-year fiscal 2026 for our business. Our Senior Medicare Advantage distribution business excelled through another turbulent year for the industry. Insurance carriers continued to modify policy benefits and optimize volumes but through it all, SelectQuote remained the reliable partner of choice. SelectQuote’s Senior business delivered another strong year with an Adjusted EBITDA margin of 26%, which marks the 4th consecutive year with margins solidly above our long-term 20%+ operating target. We have high confidence in our Senior platform’s ability to generate durable returns across a range of Medicare Advantage environments and view fiscal 2027 as an important year to further compound cash flow while remaining disciplined in our growth investments as carrier profitability improves.”
* See “Non-GAAP Financial Measures” below.
“We also increasingly realized our goal to scale Healthcare Services profitability and cash flow through our SelectRx business. We are excited to exit fiscal 2026 with run-rate Adjusted EBITDA of nearly $50 million, which will increasingly drive operating cash flow and ultimately accrue value to our shareholders.”
Mr. Danker continued, “Looking to fiscal 2027, we have conviction that the $44 million improvement in operating cash flow in fiscal 2026 will continue. As we have emphasized, our highest strategic priority is to deliver shareholder value through growth in profitability and scaled cash flow. In the year ahead, we plan to accelerate equity value accretion in multiple ways. Exiting 2026, we have successfully implemented technology-enabled workstream efficiencies that we expect will drive annual expense savings of over $30 million. Paired with the demonstrated durability of our Senior profitability and continued scale of Healthcare Services, we expect full-year 2027 operating cash flow to approximately double to over $60 million, with free cash flow generation of around $50 million. Best of all, we see opportunity to compound cash flow growth in the future through continued optimization of our leverage and funding costs, and we are excited to deliver this value to our shareholders in the years ahead.”
Segment Results
We currently have three reportable segments: 1) Senior, 2) Healthcare Services and 3) Life. The performance measures of the segments include total revenue and adjusted EBITDA. Costs of commissions and other services revenue, cost of goods sold-pharmacy revenue, marketing and advertising, selling, general, and administrative, and technical development operating expenses that are directly attributable to a segment are reported within the applicable segment. Indirect costs of revenue, marketing and advertising, selling, general, and administrative, and technical development operating expenses are allocated to each segment based on varying metrics such as headcount.
Senior
Financial Results
The following table provides the financial results for the Senior segment for the periods presented:
Operating Metrics
Submitted Policies
Submitted policies are counted when an individual completes an application with our licensed agent and provides authorization to the agent to submit the application to the insurance carrier partner. The applicant may have additional actions to take before the application will be reviewed by the insurance carrier.
The following table shows the number of submitted policies for the periods presented:
Approved Policies
Approved policies represents the number of submitted policies that were approved by our insurance carrier partners for the identified product during the indicated period. Not all approved policies will go in force.
The following table shows the number of approved policies for the periods presented:
Lifetime Value of Commissions per Approved Policy
Lifetime value of commissions per approved policy represents commissions estimated to be collected over the estimated life of an approved policy based on multiple factors, including but not limited to, contracted commission rates, carrier mix and expected policy persistency with applied constraints. The lifetime value of commissions per approved policy is equal to the sum of the commission revenue due upon the initial sale of a policy, and when applicable, an estimate of future renewal commissions.
The following table shows the lifetime value of commissions per approved policy for the periods presented:
Healthcare Services
Financial Results
The following table provides the financial results for the Healthcare Services segment for the periods presented:
Operating Metrics
Members
The total number of SelectRx members represents the amount of active customers to which an order has been shipped and the prescriptions per day represents the total average prescriptions shipped per business day. These two metrics are the primary drivers of revenue for Healthcare Services.
The following table shows the total number of SelectRx members as of the periods presented:
The total number of SelectRx members increased by 1% as of June 30, 2026, compared to June 30, 2025, due to a growth in membership during the AEP season.
The following table shows the average prescriptions shipped per day for the periods presented:
Combined Senior and Healthcare Services – Consumer Per Unit Economics
Combined Senior and Healthcare Services consumer per unit economics represents total MA and MS commissions; other product commissions; other revenues, including revenues from Healthcare Services; and operating expenses associated with Senior and Healthcare Services, each shown per number of approved MA and MS policies over a given time period. Management assesses the business on a per-unit basis to help ensure that the revenue opportunity associated with a successful policy sale is attractive relative to the marketing acquisition cost. Because not all acquired leads result in a successful policy sale, all per-policy metrics are based on approved policies, which is the measure that triggers revenue recognition.
The MA and MS commission per MA/MS policy represents the LTV for policies sold in the period. Other commission per MA/MS policy represents the LTV for other products sold in the period, including DVH prescription drug plan, and other products, which management views as additional commission revenue on our agents’ core function of MA/MS policy sales. Pharmacy revenue per MA/MS policy represents revenue from SelectRx, and other revenue per MA/MS policy represents revenue from Healthcare Select, production bonuses, marketing development funds, lead generation revenue, and adjustments from the Company’s reassessment of its cohorts’ transaction prices. Total operating expenses per MA/MS policy represents all of the operating expenses within Senior and Healthcare Services. The revenue to customer acquisition cost (“CAC”) multiple represents total revenue as a multiple of total marketing acquisition cost, which represents the direct costs of acquiring leads. These costs are included in marketing and advertising expense within the total operating expenses per MA/MS policy.
The following table shows combined Senior and Healthcare Services consumer per unit economics for the periods presented. Based on the seasonality of Senior and the fluctuations between quarters, we believe that the most relevant view of per unit economics is on a rolling 12-month basis. All per MA/MS policy metrics below are based on the sum of approved MA/MS policies, as both products have similar commission profiles.
Total revenue per MA/MS policy increased 13% for the twelve months ended June 30, 2026, compared to the twelve months ended June 30, 2025, primarily due to the increase in pharmacy revenue. Total operating expenses per MA/MS policy increased 13% for the twelve months ended June 30, 2026, compared to the twelve months ended June 30, 2025, driven by an increase in cost of goods sold-pharmacy revenue for Healthcare Services due to the growth of the business.
Life
Financial Results
The following table provides the financial results for the Life segment for the periods presented:
Operating Metrics
Life premium represents the total premium value for all policies that were approved by the relevant insurance carrier partner and for which the policy document was sent to the policyholder and payment information was received by the relevant insurance carrier partner during the indicated period. Because our commissions are earned based on a percentage of total premium, total premium volume for a given period is the key driver of revenue for our Life segment.
The following table shows term and final expense premiums for the periods presented:
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Non-GAAP Financial Measures
This release includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. To supplement our financial statements presented in accordance with GAAP and to provide investors with additional information regarding our GAAP financial results, we have presented in this release Adjusted EBITDA, which, when presented on a consolidated basis, is a non-GAAP financial measure. This non-GAAP financial measure is not based on any standardized methodology prescribed by GAAP and is not necessarily comparable to any similarly titled measure presented by other companies. We define Adjusted EBITDA as net income plus interest expense, income taxes, depreciation and amortization, changes in fair value of warrant liabilities, loss on extinguishment of debt, and certain add-backs for non-cash or non-recurring expenses, including restructuring and share-based compensation expenses. The most directly comparable GAAP measure is net income. We monitor and have presented in this release Adjusted EBITDA because it is a key measure used by our management and Board of Directors to understand and evaluate our operating performance, establish budgets, and develop operational goals for managing our business. In particular, we believe that excluding the impact of these expenses in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core operating performance.
A reconciliation of the differences between Adjusted EBITDA and its most directly comparable GAAP measure, net income, is presented below on page 13. The Company is unable to provide a quantitative reconciliation of forward-looking Adjusted EBITDA to its most directly comparable GAAP measure without unreasonable effort because it is not possible to predict certain information included in the calculation of such GAAP measure, including the fair value of outstanding warrants to purchase shares of the Company’s common stock. The unavailable information could have a significant impact on the Company’s GAAP financial results.
Forward Looking Statements
This release contains forward-looking statements. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: our reliance on a limited number of insurance carrier partners and any potential termination of those relationships or failure to develop new relationships; existing and future laws and regulations affecting the health insurance market; changes in health insurance products offered by our insurance carrier partners and the health insurance market generally; insurance carriers offering products and services directly to consumers; changes to commissions paid by insurance carriers and underwriting practices; competition with brokers, exclusively online brokers and carriers who opt to sell policies directly to consumers; competition from government-run health insurance exchanges; developments in the U.S. health insurance system; our dependence on revenue from carriers in our senior segment and downturns in the senior health as well as life, automotive and home insurance industries; our ability to develop new offerings and penetrate new vertical markets; risks from third-party products; failure to enroll individuals during the Medicare annual enrollment period; our ability to attract, integrate and retain qualified personnel; our dependence on lead providers and ability to compete for leads; failure to obtain and/or convert sales leads to actual sales of insurance policies; access to data from consumers and insurance carriers; accuracy of information provided from and to consumers during the insurance shopping process; cost-effective advertisement through internet search engines; ability to contact consumers and market products by telephone; global economic conditions, including inflation; disruption to operations as a result of future acquisitions; significant estimates and assumptions in the preparation of our financial statements; impairment of goodwill; potential litigation and other legal proceedings or inquiries; our existing and future indebtedness; our ability to maintain compliance with our debt covenants; access to additional capital; our ability to regain and maintain compliance with NYSE listing standards; failure to protect our intellectual property and our brand; fluctuations in our financial results caused by seasonality; accuracy and timeliness of commissions reports from insurance carriers; timing of insurance carriers’ approval and payment practices; factors that impact our estimate of the constrained lifetime value of commissions per policyholder; changes in accounting rules, tax legislation and other legislation; disruptions or failures of our technological infrastructure and platform; failure to maintain relationships with third-party service providers; cybersecurity breaches or other attacks involving our systems or those of our insurance carrier partners or third-party service providers; our ability to protect consumer information and other data; failure to market and sell Medicare plans effectively or in compliance with laws; and other factors related to our pharmacy business, including manufacturing or supply chain disruptions, access to and demand for prescription drugs, changes in reimbursement rates under our contracts with pharmacy benefit managers, and regulatory changes or other industry developments that may affect our pharmacy operations. For a further discussion of these and other risk factors that could impact our future results and performance, see the section entitled “Risk Factors” in the most recent Annual Report on Form 10-K (the “Annual Report”) and subsequent periodic reports filed by us with the Securities and Exchange Commission. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and, except as otherwise required by law, we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.
About SelectQuote:
Founded in 1985, SelectQuote (NYSE: SLQT) pioneered the model of providing unbiased comparisons from multiple, highly-rated insurance companies, allowing consumers to choose the policy and terms that best meet their unique needs. Two foundational pillars underpin SelectQuote’s success: a strong force of highly-trained and skilled agents who provide a consultative needs analysis for every consumer, and proprietary technology that sources and routes high-quality leads. Today, the Company operates an ecosystem offering high touchpoints for consumers across insurance, pharmacy, and virtual care.
With an ecosystem offering engagement points for consumers across insurance, Medicare, pharmacy, and value-based care, the company now has three core business lines: SelectQuote Senior, SelectQuote Healthcare Services, and SelectQuote Life. SelectQuote Senior serves the needs of a demographic that sees around 10,000 people turn 65 each day with a range of Medicare Advantage and Medicare Supplement plans. SelectQuote Healthcare Services is comprised of the SelectRx Pharmacy, a Patient-Centered Pharmacy Home™ (PCPH) accredited pharmacy, SelectPatient Management, a provider of chronic care management services, and Healthcare Select which proactively connects consumers with a wide breadth of healthcare services supporting their needs.
OpenAI announced that its new custom AI chip, called Jalapeno, outperformed Nvidia’s current-generation GB300 processor in internal testing, marking a notable milestone in the ChatGPT maker’s push to build its own AI infrastructure rather than relying entirely on outside chip suppliers. In benchmark testing, Jalapeno led in two specific categories, the amount of AI work it could process per unit of power consumed, and the speed at which it returned responses, according to OpenAI’s chip chief, who discussed the results in an interview and presented them publicly at the Hot Chips conference at Stanford University.
Jalapeno was developed in partnership with Broadcom, which builds custom chips for a range of major technology clients, and the two companies have touted the unusually short development timeline that brought the chip from concept to testing. OpenAI plans to begin using the chips to support its AI models later this year, running the low-voltage, 700-watt processor specifically to reduce power costs across its rapidly expanding data center footprint, power representing one of the largest ongoing expenses in operating AI infrastructure at scale.
Several important caveats temper how much weight investors should place on this result. Jalapeno was not tested against Nvidia’s newest chip generation, Vera Rubin, which only recently began shipping and represents Nvidia’s current cutting edge rather than its prior-generation GB300. Jalapeno is also not designed to train AI models at all, an area where Nvidia’s technology remains dominant. Instead, Jalapeno is built specifically for inference, the process of running an already-trained model to generate responses and complete tasks, a narrower but still commercially significant slice of the overall AI compute market.
OpenAI’s own chip chief was notably candid about the limits of this milestone, describing Nvidia as a genuinely strong partner that OpenAI will continue to rely on heavily going forward, a reminder that this announcement reflects supplier diversification rather than any intention to replace Nvidia outright. That diversification effort is broader than just Jalapeno. OpenAI already uses chips from Cerebras Systems for some of its smaller models, a company whose own record-breaking Nasdaq debut we covered earlier this summer, though OpenAI’s chip chief noted that architecture is best suited to smaller models, while Jalapeno is designed to handle considerably larger ones. Beyond Jalapeno, competing custom chip startups are pursuing similar goals, including Etched, which recently raised funding at a $21 billion valuation, and MatX, founded by former members of Google’s internal silicon design team.
For investors tracking the AI infrastructure ecosystem, this development is best understood as confirmation of a trend already well underway rather than a singular disruption. Every major AI company, from Google’s long-running TPU program to Amazon’s Trainium chips to Microsoft’s own custom silicon efforts, is pursuing some version of reduced dependency on any single chip supplier, and OpenAI’s Jalapeno simply extends that pattern to the company sitting at the center of the current AI boom. That dynamic creates real, sustained demand for the broader ecosystem of smaller specialized companies supporting custom chip development, including semiconductor design and IP licensing firms, advanced packaging providers, and specialized testing and validation companies that benefit regardless of which individual chip architecture ultimately wins the most market share.
Nvidia’s stock showed little reaction to the news, a reasonable response given the caveats involved. But the steady, accelerating march toward diversified AI chip supply chains remains one of the more durable structural themes shaping opportunity across the smaller companies that make up that supply chain.
Conduent Incorporated (Nasdaq: CNDT), a global technology-driven business solutions and services company, today announced it is expanding its enterprise AI strategy by collaborating with Google Cloud and integrating Google’s Gemini models into Conduent’s Viewpoint™ platform. The collaboration represents another milestone in Conduent’s strategy to embed GenAI across its technology platforms, helping clients modernize complex, essential workflows while improving speed, quality and operational efficiency.
Corporate legal departments are under increasing pressure to review growing volumes of structured and unstructured information while controlling costs, reducing risk and meeting tighter deadlines. By combining Conduent’s decades of legal operations expertise with Google Cloud’s AI technologies, organizations can analyze complex datasets faster, improve decision-making and deliver more defensible outcomes across eDiscovery and data breach response.
“Enterprise AI is not about replacing expertise, it is about amplifying it,” said George Wehbe, President, Commercial Solutions, Conduent. “Legal professionals are being asked to review exponentially more information with the same resources. By combining Conduent’s legal operations expertise with Google Cloud’s AI capabilities, we’re helping clients make faster, better-informed decisions while maintaining the governance, transparency and defensibility these matters demand.”
Driving Faster, Smarter Legal Outcomes At the core of the collaboration is Enhanced Review, a GenAI-powered capability within Viewpoint, which applies user-defined protocols to identify relevant content, detect legal issues, and surface high-risk documents early in the review process.
Enabled by Google’s Gemini models, Enhanced Review delivers consistent, explainable results with transparent reasoning that helps legal teams understand not just what was identified, but why.
By embedding GenAI, Enhanced Review enables:
Faster insights — key case questions answered in minutes, not days
Lower costs — 30–60% reduction in document-intensive analysis effort
Reduced risk — improved accuracy, auditability, and defensibility
Extending AI Across the Legal Workflow Beyond document review, Conduent’s collaboration with Google Cloud helps extend GenAI across the broader legal lifecycle. Viewpoint Apps use AI-powered analysis to convert large volumes of unstructured documents into structured, review-ready outputs, including chronologies, privilege logs and case reports, to accelerate insight while reducing manual effort.
In addition, Conduent’s CyberMine®, integrated with Viewpoint Data Breach Analyzer, automates breach response workflows by extracting participant data at scale, often spanning millions of records, deduplicating entries, and generating audit-ready notification lists, significantly reducing both response time and operational burden.
Built for Scale, Security, and Choice Unlike cloud-only platforms, Viewpoint gives organizations full control over how and where their data is managed. Clients can deploy the full solution as SaaS on Google Cloud, on-premises or through managed services, ensuring alignment with regulatory, security and operational requirements. This flexibility, combined with Google Cloud’s global, high-performance infrastructure, enables organizations to scale eDiscovery operations without compromising data sovereignty or control.
Advancing Innovation in Legal and Compliance Conduent’s collaboration with Google Cloud reflects a commitment to co-innovation and expanding the role of AI across legal and compliance workflows. Current capabilities focus on eDiscovery and data breach response, with planned expansion into areas such as contract analytics and investigations.
About Conduent Conduent delivers digital business solutions and services spanning the commercial, government and transportation spectrum – creating valuable outcomes for its clients and the millions of people who count on them. The Company leverages cloud computing, artificial intelligence, machine learning, automation and advanced analytics to deliver mission-critical solutions. Through a dedicated global team of approximately 48,000 associates, process expertise and advanced technologies, Conduent’s solutions and services digitally transform its clients’ operations to enhance customer experiences, improve performance, increase efficiencies and reduce costs. Conduent adds momentum to its clients’ missions in many ways including disbursing approximately $80 billion in government payments annually, enabling approximately 2.0 billion customer service interactions annually, empowering millions of employees through HR services every year and processing over 14 million tolling transactions every day. Learn more at www.conduent.com .
Trademarks Conduent is a trademark of Conduent Incorporated in the United States and/or other countries. Other names may be trademarks of their respective owners.
ATLANTA, Aug. 18, 2026 (GLOBE NEWSWIRE) — DLH Holdings Corp. (NASDAQ: DLHC) (“DLH” or the “Company”), a leading provider of digital transformation and cybersecurity, systems engineering and integration, and science research and development, today announced it has been awarded a multiple-award indefinite delivery/indefinite quantity (“MAC ID/IQ”) contract to provide technical services in support of cyberspace activities for the U.S. Navy. The Cyberspace Science, Research, Engineering and Technology Integration Unrestricted Multiple Award Contract is administered by Naval Information Warfare Center (“NIWC”) Pacific.
Through task orders to be competed under this contract, DLH will have the opportunity to support the architecture, engineering, functionality, interface, and interoperability of cyberspace systems, services, and capabilities at the tactical, operational, and strategic levels, including all enabling technologies. Services may include technology assessment, systems engineering, software and hardware development and prototyping, modeling and simulation, training support, and cybersecurity.
DLH is one of 29 prime awardees of the contract, which includes a base period of five years and one option period of two additional years. The contract has a total ceiling for all awardees of $400 million. Task orders are expected to be released under the contract, for which DLH expects to compete.
“DLH leverages speed, agility, world-class engineering services, and leading-edge technology, including artificial intelligence and machine learning, to deliver mission-critical cyber support,” said Billy Burnett, President of DLH’s Defense & Security business group. “This award expands the avenues available to our company to support Navy customers.”
About DLH
DLH (NASDAQ: DLHC) enhances technology, public health, and cyber security readiness missions through science, technology, cyber, and engineering solutions and services. Our experts solve some of the most complex and critical missions faced by federal customers, leveraging digital transformation, artificial intelligence, advanced analytics, cloud-based applications, telehealth systems, and more. With a world-class workforce dedicated to the idea that “Your Mission is Our Passion,” DLH brings a unique combination of government sector experience, proven methodology, and unwavering commitment to innovative solutions to improve the lives of millions. For more information, visit www.DLHcorp.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or DLH`s future financial performance. Any statements that refer to expectations, projections or other characterizations of future events or circumstances or that are not statements of historical fact (including without limitation statements to the effect that the Company or its management “believes”, “expects”, “anticipates”, “plans”, “intends” and similar expressions) should be considered forward-looking statements that involve risks and uncertainties which could cause actual events or DLH’s actual results to differ materially from those indicated by the forward-looking statements. Forward-looking statements in this release include, among others, statements regarding the anticipated use of proceeds. These statements reflect our belief and assumptions as to future events that may not prove to be accurate. Our actual results may differ materially from such forward-looking statements due to a variety of factors, including: the failure to achieve the anticipated benefits of any future acquisition (including anticipated future financial operating performance and results); the inability to retain employees and customers; contract awards in connection with re-competes for present business and/or competition for new business; our ability to manage our debt obligations; compliance with bank financial and other covenants; changes in client budgetary priorities; government contract procurement (such as bid and award protests, small business set asides, loss of work due to organizational conflicts of interest, etc.) and termination risks; significant delays or reductions in appropriations for our programs and broader changes in U.S. government funding and spending patterns; legislation that amends or changes discretionary spending levels or budget priorities; legal, regulatory, and political changes from the federal government that could result in economic uncertainty; the impact of inflation and higher interest rates; and other risks described in our SEC filings. For a discussion of such risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in the Company’s periodic reports filed with the SEC, including our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, as well as interim quarterly filings thereafter. The forward-looking statements contained herein are not historical facts, but rather are based on current expectations, estimates, assumptions and projections about our industry and business.
Such forward-looking statements are made as of the date hereof and may become outdated over time. The Company does not assume any responsibility for updating forward-looking statements.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Initiating coverage with an Outperform rating and a $5 price target. Our constructive view reflects the company’s multiyear transformation through the Lexmark acquisition, expansion of IT Solutions and Digital Services, and continued focus on operating efficiency. We believe these initiatives can moderate revenue declines, improve profitability and cash generation, and ultimately support a multiyear earnings recovery and valuation re-rating.
Lexmark Integration Positioned to Drive Significant Profit Growth. The acquisition of Lexmark expands Xerox’s global scale and is expected to generate at least $350 million in gross cost synergies by the end of 2027. In our view, it provides a clear path toward ameaningful improvement in operating leverage and competitive positioning.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
PHOENIX, Aug. 14, 2026 (GLOBE NEWSWIRE) — QuoteMedia, Inc. (OTCQB: QMCI), a provider of financial market data and technology solutions, today announced financial results for the quarter ended June 30, 2026. Revenue increased 11% to $5.45 million, compared with $4.93 million for the same period in 2025.
For more than two decades, QuoteMedia has focused on becoming the market data and technology partner financial institutions can rely on for comprehensive solutions, responsive service and compelling value.
Today, banks, brokerage firms, wealth managers, private equity firms and other financial organizations are increasingly seeking flexible, cost-effective alternatives to traditional market data providers. QuoteMedia addresses that demand through a broad suite of streaming market data feeds, XML/JSON APIs, financial content and analytics, and desktop and mobile applications including Quotestream Professional.
Our technology platform is designed to support organizations ranging from emerging financial firms to large-scale enterprise deployments. The breadth of our solutions allows clients to consolidate services with a single provider while giving QuoteMedia opportunities to expand those relationships as client requirements grow.
Highlights for Q2 2026 include the following:
Quarterly revenue increased 11%, or $520,916, to $5,450,127 in Q2 2026 from $4,929,211 in Q2 2025.
Gross margin improved to 50%, compared with 46% in the same quarter last year.
Adjusted EBITDA(1) increased $142,122 to $241,243 in Q2 2026, compared with $99,121 in Q2 2025.
Net loss decreased by $491,135 to $362,447 in Q2 2026, compared with a net loss of $853,582 in Q2 2025.
Management Commentary
“Our second-quarter results reflect the continued strengthening of our business and growing demand for QuoteMedia’s market data and technology solutions,” said Robert J. Thompson, Chairman of the Board at QuoteMedia. “Revenue increased 11% year over year, while Adjusted EBITDA improved significantly. We also completed several important new agreements during the quarter that we expect will contribute to revenue throughout the remainder of 2026 and beyond. Combined with a strong pipeline of additional enterprise opportunities, these developments reinforce our confidence in QuoteMedia’s growth trajectory.”
Reported earnings continue to reflect the accounting impact of development expenditures made in prior periods. As our development efforts increasingly shift toward refinement and maintenance of our existing product suite, a greater proportion of current development costs are recognized as expenses rather than capitalized. At the same time, amortization associated with previously capitalized development costs remains elevated. These accounting effects reduced reported earnings and EBITDA during the quarter but did not affect cash flow.
Outlook
“We have had a strong first half of 2026 and expect the solid momentum will continue through the remainder of the year and beyond,” added Robert J. Thompson. “Our sales and development pipelines remain robust, and our team continues to successfully identify, secure, and deliver high-value strategic opportunities that support our long-term growth.”
Conference Call Details
QuoteMedia will host a conference call on Monday, August 17, 2026, at 2:00 PM Eastern Time to discuss our Q2 2026 financial results and provide a business update.
An audio rebroadcast of the call will be available later at: www.quotemedia.com
About QuoteMedia
QuoteMedia is a leading software developer and cloud-based syndicator of financial market information and streaming financial data solutions to media, corporations, online brokerages, and financial services companies. The Company licenses interactive stock research tools such as streaming real-time quotes, market research, news, charting, option chains, filings, corporate financials, insider reports, market indices, portfolio management systems, and data feeds. QuoteMedia provides industry leading market data solutions and financial services for companies such as the Nasdaq Stock Exchange, TMX Group (TSX Stock Exchange), Canadian Securities Exchange (CSE), London Stock Exchange Group, FIS, U.S. Bank, Bank of Montreal (BMO), Broadridge Financial Systems, JPMorgan Chase, Scotiabank, CI Financial, Canaccord Genuity Corp., Hilltop Securities, Zacks Investment Research, Bombardier, Telus International, Business Wire, PR Newswire, The Goldman Sachs Group, Regal Securities, ChoiceTrade, Cetera Financial Group, Dynamic Trend, Inc., Credential Qtrade Securities, CNW Group, iA Private Wealth, Ally Invest, Inc., Suncor, Leede Jones Gable, Firstrade Securities, Charles Schwab, First Financial, Stock-Trak, Mergent, Cision and others. Quotestream®, QModTM and Quotestream ConnectTM are trademarks of QuoteMedia. For more information, please visit www.quotemedia.com.
Forward-Looking Statements
Statements about QuoteMedia’s future expectations, including future revenue, earnings, growth trajectory, pipeline opportunities, product development, and all other statements in this press release other than historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. QuoteMedia intends that such forward-looking statements be subject to the safe harbors created thereby. These statements are based on current expectations, estimates, and projections about the company’s business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described from time to time in the Company’s SEC reports and filings, which are available at www.sec.gov. All forward-looking statements speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.
Below are the specific forward-looking statements included in this press release:
We also completed several important new agreements during the quarter that we expect will contribute to revenue throughout the remainder of 2026 and beyond. Combined with a strong pipeline of additional enterprise opportunities, these developments reinforce our confidence in QuoteMedia’s growth trajectory.
We have had a very strong first half of 2026 and expect the solid momentum will continue through the remainder of the year and beyond.
QuoteMedia Investor Relations
Dave Shworan Email: [email protected] Call: (250) 954-3216 ext. 2101
Note 1 on Non-GAAP Financial Measures
We believe that Adjusted EBITDA, as a non-GAAP financial measure, provides meaningful information to investors in terms of enhancing their understanding of our operating performance and results, as it allows investors to more easily compare our financial performance on a consistent basis compared to the prior year periods. This non-GAAP financial measure also corresponds with the way we expect investment analysts to evaluate and compare our results. Any non-GAAP pro forma financial measures should be considered only as supplements to, and not as substitutes for or in isolation from, or superior to, our other measures of financial information prepared in accordance with GAAP, such as net income attributable to QuoteMedia, Inc.
We define and calculate Adjusted EBITDA as net income attributable to QuoteMedia, Inc., plus: 1) depreciation and amortization, 2) stock compensation expense, 3) interest expense, 4) foreign exchange loss (or minus a foreign exchange gain), and 5) income tax expense. We disclose Adjusted EBITDA because we believe it is a useful metric by which to compare the performance of our business from period to period. We understand that measures similar to Adjusted EBITDA are broadly used by analysts, rating agencies, investors and financial institutions in assessing our performance. Accordingly, we believe that the presentation of Adjusted EBITDA provides useful information to investors. The table below provides a reconciliation of Adjusted EBITDA to net income attributable to QuoteMedia, Inc., the most directly comparable GAAP financial measure.
QuoteMedia, Inc. Adjusted EBITDA Reconciliation to Net Loss:
Flock Safety, the license plate reader company at the center of a spreading privacy controversy, unveiled new privacy guardrails Thursday in response to months of backlash over allegations its technology enables mass surveillance. CEO Garrett Langley addressed the criticism directly, stating the company is not Big Brother and is focused on protecting people.
The changes are specific. Flock is cutting its default data retention window from 30 days down to seven, giving customers control over which offense types can be searched, and making case codes mandatory rather than optional for every search. The company is also adding mandatory audit logs and a feature that automatically blocks users when the system detects abnormal search patterns, pending review. Flock says these changes exceed what most states currently require by law.
Why Flock Is Making These Changes Now
The backlash has been building for months. A Washington Post investigation published earlier this month found at least 50 law enforcement officers had been charged with or accused of misusing license plate reader systems, including using the technology to stalk women without their knowledge or consent, with 46 of those cases involving Flock’s system specifically. The EFF and ACLU have both raised formal concerns, with EFF describing the technology as susceptible to grave abuses, including tracking protesters and targeting people by immigration status. Some communities have cancelled contracts outright, and in more extreme cases, citizens have covered or destroyed cameras. Last month, Flock removed a feature that detected human screaming following a nine-month EFF pressure campaign.
The Business Is Growing Despite the Controversy
Here is what makes this genuinely relevant for investors. Flock’s revenue is accelerating even as the backlash intensifies. Langley disclosed the company’s annual revenue run rate climbed to $500 million in June, up from $300 million in January, more than 65% growth in six months. More than half of that growth is coming from newer product lines beyond license plate cameras, including surveillance drones, mobile security trailers, and audio detection systems for gunshots and crashes.
Langley was candid about the strategy. The core license plate reader market is largely fixed, since Flock does not add new cities very often once a market matures. Growth going forward depends on drones, trailers, and software, not the camera network itself. Flock, backed by more than $1 billion from Andreessen Horowitz and other venture investors, recently raised $200 million in equity and $300 million in venture debt at an $8.3 billion valuation.
A Public Company in the Same Space Just Had a Rough Day
Flock has no public ticker, but Cellebrite (Nasdaq: CLBT), which makes digital forensics software for law enforcement, saw its stock plunge nearly 32% Thursday after missing revenue estimates, cutting guidance, and announcing an abrupt CEO change. That drop was driven by company-specific factors rather than the Flock controversy directly. Still, Cellebrite’s management cited new procurement and data-sovereignty requirements as a factor delaying deals, echoing the broader regulatory scrutiny now facing government surveillance technology generally.
What It Means for Investors
Together, these stories show the same dynamic from different angles. Flock is proactively building governance guardrails to get ahead of political backlash before it costs more contracts. Cellebrite’s guidance cut shows how quickly new compliance requirements can delay revenue even for an established public player. For investors evaluating companies in this space, contract renewal risk and public trust are becoming financially material factors, not separate from growth metrics.
CoreWeave (Nasdaq: CRWV) reported second quarter 2026 earnings Tuesday evening that beat Wall Street expectations on both revenue and profitability, sending shares up as much as 14% to 18% in after-hours and premarket trading. The AI cloud infrastructure provider posted revenue of $2.58 billion, up 112% year over year, edging past the $2.56 billion analyst consensus. Adjusted loss per share came in at $1.03, better than the $1.20 loss analysts had expected.
What Drove CoreWeave’s Stock Price Higher This Week
The revenue beat alone was modest, exceeding consensus by less than 1%, typically not enough on its own to justify a double-digit stock move. The real surprise came further down the income statement. CoreWeave’s adjusted operating income reached $128 million, more than double the company’s own guided midpoint of $60 million and well above the top end of its $30 million to $90 million guidance range. That margin outperformance, arriving after six weeks of intense credit market scrutiny around the company’s debt load, was the detail that convinced investors CoreWeave’s massive infrastructure buildout is beginning to generate real operating leverage rather than just top-line growth.
CoreWeave Raises Full-Year 2026 Revenue and Capex Guidance
Management raised full-year 2026 revenue guidance to a range of $12.4 billion to $13.2 billion, up from its prior forecast, and lifted adjusted operating income guidance to $960 million to $1.15 billion. Alongside that upgrade, the company raised its full-year 2026 capital expenditure guidance to $35 billion to $39 billion, up from a prior range of $31 billion to $35 billion. At the $37 billion midpoint, that spending level represents approximately 2.9 times CoreWeave’s projected annual revenue, up from roughly 2.6 times previously, a ratio that underscores just how capital intensive the AI infrastructure buildout remains even for one of its fastest-growing players.
Importantly, management chose to raise its capex guidance rather than pull back, a signal that leadership views current demand as strong enough to justify accelerating the buildout rather than moderating it.
CoreWeave’s $104 Billion Backlog and What It Means for Revenue Visibility
Perhaps the most closely watched figure in the report was CoreWeave’s contracted revenue backlog, which climbed to $104 billion, roughly 8.1 times the midpoint of the company’s full-year revenue guidance. That backlog grew by nearly $30 billion in just six weeks, driven in part by new business disclosed with Anthropic and Meta during the quarter. A backlog of that size gives investors meaningfully more confidence in CoreWeave’s multi-year revenue trajectory than quarterly results alone can provide, though it does not eliminate near-term financing and execution risk tied to actually building out the physical infrastructure required to deliver on those contracts.
The Risk Side of the Story
The growth is not without real cost. CoreWeave’s net loss widened to $626 million from $290 million a year earlier, driven primarily by a surge in interest expense as the company raised $13.46 billion in gross debt during the quarter alone. Active power capacity grew to 1.5 gigawatts, with management guiding toward a path to at least 8 gigawatts by 2030, but each gigawatt of buildout requires enormous ongoing capital that must be financed through debt, equity, or a combination of both. Shares are up roughly 26% year to date, outperforming the broader S&P 500’s approximately 13% gain, but the stock has also seen significant volatility this year as investors debate whether the company’s growth model is sustainable at its current pace of spending.
What CoreWeave’s Results Mean for Small Cap AI Infrastructure Stocks
CoreWeave’s report landed alongside a broader rally across the AI infrastructure supply chain Tuesday, with data center operators including IREN, WULF, CORZ, CIFR, and HUT all trading higher, along with optical networking company Lumentum and server manufacturer Super Micro, both of which posted strong results of their own. As we detailed in our recent coverage of the broader US data center construction boom, roughly 40% of the nearly $700 billion in projected 2026 data center spending flows into physical infrastructure and power buildout rather than compute hardware alone. CoreWeave’s results are a direct, real-time confirmation of that thesis, and the sector-wide rally in smaller data center and infrastructure names Tuesday illustrates how closely tied the fortunes of these companies remain to the health of the largest AI infrastructure buyers.
SKYX Reports over $27.7 Million in Cash and Cash Equivalents as of June 30, 2026, Management Believes It Has Sufficient Cash to Achieve Its Goals Including Becoming Cash Flow Positive as It Exits 2026
39% Reduction in Cash Used in Operating Activities to $3.7 million in Q-2 of 2026 from $6.0 million in Q-1 of 2026
Gross Profit Continues to Grow with 4% Increase to $7.3 Million in Q-2 of 2026 Compared to Q-2 of 2025 and a 10% Increase to $13.9 Million for the First Half of 2026 Compared to $12.7 Million for the First Half of 2025
SKYX Recently Announced it Will Supply Its Technologies During a Renovation of a Marriott City Center Hotel in Durham, NC
In May 2026 SKYX Announced Its Technology Will Become Brand Standard for European Hotel Developers Group OTT, Developer Over 250 Hotels and Buildings Across Europe In May 2026 SKYX Announced Its First European Hotel in France During a Renovation of an Historical Architectural Preservation Hotel, The Grand Hotel du Parc (formerly The Grand Medicis Hotel)
In June 2026 SKYX Announced It Will Deploy Its Technologies to Its Second European Hotel During a Renovation of 5-Star Accor Hospitality Group Hotel Mozart Prague
SKYX Signed Additional Agreement with Group OTT Heritage Hospitality Group to Deploy and Market Its Technologies to Vast European Hotel Market of Over 132,000 Hotels
In May 2026 SKYX Signed a Licensing Agreement for Its Advanced Technologies with U.S., Canada, and Global Leading Lighting Company Eurofase
SKYX Is Expected to Deploy Over 1-Million Units of Its Products including Its Advanced Smart Home Plug-and-Play Technologies During the Course of Its Projects and to Over 100,000 Units/Homes by the End of 2026 Through Its Pro and Retail Segments
SKYX’s Future Projects in the U.S. and Globally Include Projects in North Carolina, Austin, San Antonio, South Florida (Including Miami’s New $4 Billion Smart City), New York, Europe, Saudi Arabia, and Egypt
Despite One of the Hottest Summers on Record, SKYX’s Sales of Its Patented Turbo Heater Fan are Continuing to Grow and Company Expects Sales to Significantly Grow Towards Fall and Winter Seasons and Will Provide Additional Products in New Designs and Larger Sizes
SKYX’s Technology Expansion Provides Additional Opportunities for Future Recurring Revenues Through Interchangeability, Upgrades, AI Services, Monitoring, Subscriptions, and More
SKYX’s Enhanced Safety Code Standardization Team Continues Its Progress Toward Its Goal of a Safety-Mandated Standardization in Homes/Buildings of Its Life-Saving Ceiling Outlet/Receptacle Technology
MIAMI, Aug. 12, 2026 (GLOBE NEWSWIRE) — SKYX Platforms Corp. (NASDAQ: SKYX) (d/b/a SKYX Technologies) (the “Company” or “SKYX”), a highly disruptive advanced smart home and AI platform technology company with over 100 pending and issued patents globally and 60 lighting and home décor websites, with a mission to make homes and buildings become safe and smart as the new standard, today reported its financial and operational results for the second quarter ended June 30, 2026.
SKYX will hold a conference call today, August 12, 2026, at 4:30 pm, Eastern Time, to discuss the results. See below for dial-in information.
Second Quarter 2026 Highlights and Recent Events
Generated an increase of 14% in revenues to a record $25.3 million in second quarter 2026 compared to $22.1 million in revenues in first quarter 2026 and an increase of 10% compared to $23.1 million for the second quarter of 2025.
As of June 30, 2026, Company reported $27.7 million in total cash, cash equivalents, and restricted cash compared to $10.1 million as of December 31, 2025.
Reporting 10 consecutive YoY quarters of growth.
Revenues for the six months ended June 30, 2026, increased 10% to a record $47.4 million compared to $43.2 million for the six months ended June 30, 2025.
SKYX continues to leverage the rapid conversion of its e-commerce sales into cash, advancing it’s cash position often referred to as the “Dell Working Capital Model”, lowering its cost of capital.
Management believes it has sufficient cash to achieve its goals including becoming cash flow positive exiting 2026.
The gross profit for the second quarter ending June 30, 2026, increased comparatively to the second quarter of 2025 by 4% to $7.3 million. Gross profit for the six months ended June 30, 2026, increased comparatively by 10% to $13.9 million, compared to $12.7 million for the six months ended June 30, 2025.
Net loss decreased by $0.6 million to $8.2 million in the second quarter of 2026 compared to $8.8 million in the second quarter of 2025 and decreased by $1.1 million sequentially compared to $9.3 million in the first quarter of 2026.
Net loss per share was $0.06 per share in the second quarter of 2026 compared to $0.08 in the second quarter of 2025.
Adjusted EBITDA loss, a non-GAAP measure, improved sequentially to $3.5 million in the second quarter of 2026 from $3.9 million in the first quarter of 2026, as compared to $2.6 million in the second quarter of 2025.
Net cash used in operating activities was reduced by 39% to $3.7 million in the second quarter of 2026 from $6.0 million in the first quarter of 2026.
The Company reduced interest-bearing debt by $2.0 million as of June 30, 2026.
The Company maintains a structurally favorable working capital profile, with customers paying in advance of supplier payment obligations. This results in a net working capital deficit representing 9.8% of revenues and supports rapid conversion of e-commerce sales into operating cash flow.
Builder / Hotel Segments and General Market Acceptance
SKYX Is Expected to Deploy Over 1-Million Units of Its Products including Its Advanced Smart Home Plug-and-Play Technologies During the Course of Its Projects and to Over 100,000 Units/Homes by the End of 2026 Through Its Pro and Retail Segments.
SKYX’s Future Projects in the U.S. and Globally Include Projects in North Carolina, Austin, San Antonio, South Florida (Including Miami’s New $4 Billion Smart City), New York, Europe, Saudi Arabia, and Egypt.
SKYX announced the launch of its patented advanced SKYFAN and Turbo Heater to the leading U.S. retailer The Home Depot, including a new SkyPlug branding page on HomeDepot.com.
SKYX recently announced the launch of its Turbo Heater fan at leading U.S. retailers Target, Walmart, and Lowe’s, and on its e-commerce platform across 60 websites.
Based on the Growing Sales of its patented Turbo Heater fan, SKYX is expanding the category of the “All-Season Ceiling Fan” — heat in winter and cool in summer — to provide additional products in new designs and larger sizes.
Technology Roadmap
SKYX’s technologies expansion provides additional opportunities for future recurring revenues through interchangeability, upgrades, AI services, monitoring, subscriptions, and more.
SKYX will be launching a new AI-driven system and infrastructure for its e-commerce platform of 60 websites, expected to significantly increase its conversion rate and sales.
The Company secured U.S. and global strategic manufacturing partnerships with premier manufacturers including in the U.S., Vietnam, Taiwan, China, and Cambodia.
SKYX announced a collaboration with the NVIDIA AI Ecosystem Connect Program. SKYX expects to grow its collaboration with NVIDIA through its existing and future smart home projects.
Safety Standardization Mandatory Code and Insurance Exposure
SKYX’s Safety Code Standardization Team is receiving support from a new significant prominent leader with its government safety agency’s process for a safety mandatory standardization of its electrical ceiling outlet/receptacle technology.
SKYX’s code team is led by industry veterans Mark Earley, former head of the National Electrical Code (NEC), and Eric Jacobson, former President and CEO of the American Lighting Association (ALA). The Company’s Safety Code Standardization team believes it will garner assistance from additional safety organizations with its code mandatory safety standardization efforts based on the product’s significant safety aspects. Mr. Earley and Mr. Jacobson were instrumental in numerous code and safety changes in both the electrical and lighting industries. Both strongly believe that, considering the Company’s standardization progress including its product specification approval voting for by ANSI / NEMA (American National Standardization Institute / National Electrical Manufacturers Association) and being voted into 10 segments in the NEC Code Book, it has met the necessary safety conditions for becoming a ceiling safety standardization requirement for homes and buildings.
The Company strongly believes its products can save insurance companies many billions of dollars annually by minimizing risks (e.g., reducing fires, ladder fall injuries, and electrocutions). Management expects that insurance companies will use the Company’s range and variations of its safe advanced plug & play products to reduce its exposure and minimize its risks.
Financing Highlights
SKYX cash, cash equivalents and restricted cash increased to $27.7 million as of June 30, 2026, as compared to $10.1 million as of December 31, 2025, as we raised $29 million in straight equity, with no warrants during January 2026 through two fundamental institutional investors, $25 million at $2.50 per share and $4 million at $2.00 per share.
In 2025 we extended $13.5 million in notes coming due with maturity out to 5 years until 2030.
Second Quarter 2026 Financial Results
The Company’s financial statements for the quarter ended June 30, 2026, are filed with the SEC and are available on the Company’s investor relations website. https://ir.skyplug.com/sec-filings/
Management Commentary
Company’s Management, Board members, and Senior Advisors include former CEO’s and executives from Fortune 100 companies including Nielsen, Microsoft, Disney, GE, The Home Depot, Office Depot, Chrysler, among others.
The Company is trending positively, generating record second quarter 2026 revenues of $25.3 million representing a 14% increase compared to $22.1 million and a 10% increase as compared to $23.1 million for the second quarter of 2025, and record first half 2026 revenues of $47.4 million as compared to $43.2 million for the first half of 2025. The Company generated a gross profit for the second quarter ending June 30, 2026, increasing by 4% to $7.3 million, compared to the second quarter ending June 30, 2025, and a 9% increase to $13.9 million for the first half of 2026 compared to $12.7 million for the first half of 2025. We believe our positive trends will continue to accelerate through the balance of 2026 as we build out and execute on our channel strategy.
We are encouraged by the recently announced initiatives where we could supply hundreds of thousands of units in Europe, the Middle East including Saudi Arabia and Egypt, the $4 billion mixed-use smart city development in the Little River District in the heart of Miami, and projects in Pittsford, New York; North Carolina; Austin, Texas; and San Antonio, Texas. We continue to address the builder/commercial segments, large online and brick-and-mortar retail partners as well as our future potential to realize incremental licensing, subscription, and AI/data aggregation revenues.
Furthermore, our e-commerce website platform with 60 websites enhances the acceleration of marketing and distribution channels, collaborations, licensing, and sales to both professional and retail segments. Our websites include banners, videos, and educational materials regarding the simplicity, cost savings, time-saving, and life-saving aspects of the Company’s patented technologies.
We have accelerated our pace of sales and strategic initiatives with a robust gross margin profile, notably reducing the net loss, the adjusted EBITDA loss, and the net cash used in operating activities of SKYX on a sequential quarterly basis. Our e-commerce platform with 60 websites is expected to continue to provide additional cash flow to the Company.
About SKYX Platforms Corp.
As electricity is a standard in every home and building, our mission is to make homes and buildings become safe-advanced and smart as the new standard. SKYX has a series of highly disruptive advanced smart home and AI platform technologies, with over 100 U.S. and global patents and patent pending applications. Additionally, the Company owns 60 lighting and home decor websites for both retail and commercial segments. Our technologies place an emphasis on high quality and ease of use, while significantly enhancing both safety and lifestyle in homes and buildings. We believe that our products are a necessity in every room in both homes and other buildings in the U.S. and globally. For more information, please visit our website at https://skyplug.com/ or follow us on LinkedIn.
Forward-Looking Statements
Certain statements made in this press release are not based on historical facts but are forward-looking statements. These statements can be identified by the use of forward-looking terminology such as “aim,” “anticipate,” “believe,” “can,” “could,” “continue,” “estimate,” “expect,” “evaluate,” “forecast,” “guidance,” “intend,” “likely,” “may,” “might,” “objective,” “ongoing,” “outlook,” “plan,” “potential,” “predict,” “probable,” “project,” “seek,” “should,” “target” “view,” “will,” or “would,” or the negative thereof or other variations thereon or comparable terminology, although not all forward-looking statements contain these words. These statements reflect the Company’s reasonable judgment with respect to future events and are subject to risks, uncertainties and other factors, many of which have outcomes difficult to predict and may be outside our control, that could cause actual results or outcomes to differ materially from those in the forward-looking statements. Such risks and uncertainties include statements relating to the Company’s ability to successfully launch, commercialize, develop additional features and achieve market acceptance of its products and technologies and integrate its products and technologies with First-party platforms or technologies; the Company’s efforts and ability to drive the adoption of its products and technologies as a standard feature, including their use in homes, hotels, offices and cruise ships; the Company’s ability to capture market share; the Company’s estimates of its potential addressable market and demand for its products and technologies; the Company’s ability to raise additional capital to support its operations as needed, which may not be available on acceptable terms or at all; the Company’s ability to continue as a going concern; the Company’s ability to execute on any sales and licensing or other strategic opportunities; the possibility that any of the Company’s products will become National Electrical Code (NEC)-code or otherwise code mandatory in any jurisdiction, or that any of the Company’s current or future products or technologies will be adopted by any state, country, or municipality, within any specific timeframe or at all; risks arising from mergers, acquisitions, joint ventures and other collaborations; the Company’s ability to attract and retain key executives and qualified personnel; guidance provided by management, which may differ from the Company’s actual operating results; the potential impact of unstable market and economic conditions, including recent measures adopted by the federal government, on the Company’s business, financial condition, and stock price; and other risks and uncertainties described in the Company’s filings with the Securities and Exchange Commission, including its periodic reports on Form 10-K and Form 10-Q. There can be no assurance as to any of the foregoing matters. Any forward-looking statement speaks only as of the date of this press release, and the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by U.S. federal securities laws.
Non-GAAP Financial Measures
Management considers earnings (loss) before interest, taxes, depreciation and amortization, or EBITDA, as adjusted, an important indicator in evaluating the Company’s business on a consistent basis across various periods. Due to the significance of non-recurring items, EBITDA, as adjusted, enables management to monitor and evaluate the business on a consistent basis. The Company uses EBITDA, as adjusted, as a primary measure, among others, to analyze and evaluate financial and strategic planning decisions regarding future operating investments and potential acquisitions. The Company believes that EBITDA, as adjusted, eliminates items that are not part of the Company’s core operations, such as interest expense and amortization expense associated with intangible assets, or items that do not involve a cash outlay, such as share-based payments and non-recurring items, such as transaction costs. EBITDA, as adjusted, should be considered in addition to, rather than as a substitute for, pre-tax income (loss), net income (loss) and cash flows used in operating activities. This non-GAAP financial measure excludes significant expenses that are required by GAAP to be recorded in the Company’s financial statements and is subject to inherent limitations. Investors should review the reconciliation of this non-GAAP financial measure to the comparable GAAP financial measure. Investors should not rely on any single financial measure to evaluate the Company’s business.
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Data center construction and AI infrastructure spending in the United States are on pace to hit approximately $700 billion in 2026, an 81% increase over 2025, making this the largest single-category construction boom in the country. Data center construction starts totaled just $14.9 billion in 2023. By 2025, that figure had exploded to $77.7 billion, a 190% year-over-year increase. To put the scale of 2026 spending in perspective, the entire US Interstate Highway System cost roughly $530 billion in today’s dollars and took decades to build. The data center industry is now spending more than that in a single year.
How Fast Is Data Center Construction Growing in 2026?
The pace of growth in 2026 has genuinely surprised even industry veterans. Year-to-date spending through April reached $49.5 billion, compared to just $13.6 billion over the same period the prior year, nearly four times the pace. Q1 2026 alone saw $44.7 billion in data center investment, up 28% year over year. January 2026 brought a record $25.2 billion in new groundbreakings in a single month. A rolling $9.8 billion monthly moving average through April 2026, more than 300% above year-ago levels, suggests this is a sustained structural shift in how capital is being allocated across the American construction industry, not a short-term spike tied to one or two megaprojects.
The scale of individual commitments underscores the point. Hyperscale technology companies including Microsoft, Amazon, Google, and Meta have collectively committed over $500 billion to AI infrastructure this year. That figure builds directly on what we covered in Amazon’s recent earnings report, where AWS alone raised its own capital expenditure guidance to approximately $220 billion for the year. Vantage committed $25 billion to a single Texas campus, and Meta broke ground on a 900 megawatt facility in Wisconsin specifically to leverage nearby hydropower access, a facility that will also require exactly the kind of specialized bond financing we detailed in our recent coverage of BlackRock’s data center bond offering for Meta.
Which States Are Leading the Data Center Construction Boom?
The geography of this boom has shifted quickly. Virginia led all states with $15.3 billion in data center construction starts in 2025, followed closely by Louisiana at $15.0 billion, Mississippi at $13.9 billion, and Texas at $13.4 billion. States that once competed aggressively over auto manufacturing plants are now competing over server farms, offering tax incentives, expedited permitting, and utility rate structures designed specifically to attract hyperscale campuses.
Why Data Center Demand Shows No Sign of Slowing
Global data center occupancy has reached a record 97%, a figure that reflects genuine capacity scarcity rather than speculative overbuilding. Nearly 100 gigawatts of new data center capacity is anticipated to come online globally between 2026 and 2030, effectively doubling total global capacity in five years. Roughly $7 trillion in global capital expenditures on data center infrastructure is projected by 2030, with more than 40% of that spending expected to occur in the United States specifically.
Construction costs have climbed alongside demand. Standard data center builds now cost between $10 million and $12 million per megawatt of capacity, while AI-ready facilities designed for the density and cooling requirements of advanced chip clusters run $20 million or more per megawatt. That capital intensity is precisely the dynamic we explored in our coverage of Oracle’s debt-funded AI buildout, where the gap between committed spending and near-term returns became a genuine investor concern.
Small Cap Data Center Stocks: Where the Opportunity Lies in the Supply Chain
For investors tracking small and microcap companies, this buildout represents far more than a story about a handful of hyperscale technology giants. Roughly 60% of total data center investment flows into the technology and hardware required to run these facilities, but the remaining 40% is split between land and building construction and, critically, power generation and cooling infrastructure, which alone accounts for approximately 25% of total spend.
That power and cooling category is where the opportunity for smaller companies becomes most direct. Electrical contractors, specialized cooling system providers, power management component manufacturers, backup generation equipment makers, and grid infrastructure companies are all seeing sustained demand growth from a construction category that contractors themselves rank as the single strongest growth segment in the industry, with 65% of contractors surveyed expecting increased data center spending in 2026, the highest expectation across every category of construction tracked.
With 76 individual data center projects totaling more than $88 billion scheduled to begin construction in just the next six months, and roughly 2,788 additional facilities already announced or under construction across the country, the supply chain feeding this buildout is likely to remain one of the more durable growth stories in the American economy well into the next decade.
