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Axe Compute Inc
(NASDAQ:AGPU)
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Rating:57Neutral
Price Target:
$13.50
▲(30.43% Upside)
Action:Reiterated
Date:09/18/26
The score is held back primarily by weak financial performance—extremely low TTM gross margin and very large losses—despite improving operating cash flow and low leverage. Technicals are strong with price above key moving averages and a positive MACD, while recent corporate events are constructive (large contracted values and capacity expansion). Valuation remains challenged due to a negative P/E and no dividend yield provided.
Positive Factors
Contracted AI infrastructure demand
Five-year AI infrastructure contracts exceeding $3 billion create a substantial contracted revenue base and include more than $534 million of expected customer prepayments. This supports deployment funding, improves demand visibility, and can reduce reliance on equity financing as activations begin.
Negative Factors
Extremely weak profitability
A gross margin near 1.6% and net margin around negative 77.7% indicate that current revenue is not translating into economically attractive earnings. Unless margins improve materially, large losses can restrict reinvestment, weaken returns, and undermine the scalability of the infrastructure model.
Read all positive and negative factors
Positive Factors
Negative Factors
Contracted AI infrastructure demand
Five-year AI infrastructure contracts exceeding $3 billion create a substantial contracted revenue base and include more than $534 million of expected customer prepayments. This supports deployment funding, improves demand visibility, and can reduce reliance on equity financing as activations begin.
Read all positive factors
Axe Compute Inc (AGPU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$145.47M
Dividend YieldN/A
Average Volume (3M)326.19K
Price to Earnings (P/E)―
Beta (1Y)1.42
Revenue Growth204.84%
EPS Growth-591.53%
CountryUS
Employees14
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-145.45
Shares Outstanding11,591,124
10 Day Avg. Volume411,630
30 Day Avg. Volume326,185
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)2.61
Price to Sales (P/S)994.73
P/FCF Ratio-2.93
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.2
Revenue Forecast (FY)$15.45M
Axe Compute Inc Business Overview & Revenue Model
Company Description
Headquartered in Pittsburgh, Pennsylvania, Axe Compute Inc., established in 2002 and formerly known as Predictive Oncology Inc. until its December 2025 renaming, is an enterprise that leverages profound scientific insights and artificial intellige...
Axe Compute Inc Earnings Call Summary
Earnings Call Date:May 18, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call presents a contrast between a weak, transitional Q1 driven by legacy revenue decline, token mark-to-market losses, and higher operating cash use, versus significant forward-looking commercial momentum: a $260 million signed build that will generate roughly $21 million in quarterly revenue when live, a large (>36,000 GPU, $4.3B) advanced pipeline, and a business model that converts deals into owned, amortizable GPU assets. Given management’s emphasis on recent large contract wins, an expanding pipeline and the expectated revenue ramp in subsequent quarters, the positives around future revenue visibility and asset-building appear to materially outweigh the near-term accounting losses and cash burn outlined for Q1.Positive Updates
Landmark $260 million Axe Build Contract
Signed a 36-month agreement in April for 2,304 NVIDIA B300s with 4.8 MW of dedicated N+1 power in a U.S. Tier-3 data center; targeted deployment Q3 2026. When live, revenue recognition from this cluster is ~ $21 million per quarter for the 36-month term and the first financial installment is expected imminently.
Negative Updates
Q1 2026 Revenue Collapse Year-over-Year
Total revenue for Q1 2026 was $35,000 versus $110,000 in Q1 2025, a decline of approximately 68.2% year-over-year, driven by reduced sales in the legacy Drug Discovery Services business and only minimal Compute Services revenue in the quarter.
Read all updates
Q1-2026 Updates
Positive
Negative
Landmark $260 million Axe Build Contract
Signed a 36-month agreement in April for 2,304 NVIDIA B300s with 4.8 MW of dedicated N+1 power in a U.S. Tier-3 data center; targeted deployment Q3 2026. When live, revenue recognition from this cluster is ~ $21 million per quarter for the 36-month term and the first financial installment is expected imminently.
Read all positive updates
Company Guidance
Management guided that the centerpiece April $260M, 36‑month Axe build (2,304 NVIDIA B300s, 4.8 MW, U.S. Tier 3, targeted deployment Q3 2026) should translate into roughly $21M of revenue per quarter for the 36‑month term once live (first installment expected this month; if the cluster launches in month 2 of the next quarter ~2/3 of that quarter’s $21M would be recognized); leadership reiterated a goal of closing roughly $1B of transactions this year and pointed to a pipeline of ~45 advanced prospects representing >36,000 GPUs (≈72% or ~26,000 Blackwell/Grace Blackwell requests) with total contract value >$4.3B and a majority of commitments at 36‑ and 60‑month terms. Other metrics disclosed: $12M of compute transactions closed in February, Q1 revenue of $35k, Q1 net loss of $7.7M (including a $4.3M noncash Aethir mark‑to‑market; underlying operating loss ≈$3.4M), cash down from $10.8M to $6.9M (operating cash use $3.7M), digital asset holdings fair value $20.2M and digital asset receivable $15.4M (vests through Dec 2028: $9.4M current, $5.9M noncurrent), and contract liabilities up to $786k (≈$650k related to Compute Services).Axe Compute Inc Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
56
Neutral
Cash Flow
40
Negative
| Breakdown | TTM | Mar 2026 | Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.26M | 125.28K | 1.62M | 1.63M | 1.51M | 1.42M |
| Gross Profit | 53.68K | 52.66K | 797.68K | 1.02M | 1.00M | 933.66K |
| EBITDA | -239.93M | -232.17M | -10.16M | -11.77M | -13.95M | -12.13M |
| Net Income | -253.50M | -233.10M | -12.20M | -13.98M | -25.74M | -19.66M |
Balance Sheet | ||||||
| Total Assets | 100.38M | 52.89M | 4.97M | 14.42M | 25.73M | 43.77M |
| Cash, Cash Equivalents and Short-Term Investments | 21.91M | 10.79M | 734.67K | 8.73M | 22.07M | 28.20M |
| Total Debt | 1.66M | 1.67M | 2.13M | 2.73M | 180.32K | 879.33K |
| Total Liabilities | 66.33M | 5.17M | 5.18M | 6.15M | 3.97M | 3.51M |
| Stockholders Equity | 34.05M | 47.72M | -202.61K | 8.27M | 21.77M | 40.27M |
Cash Flow | ||||||
| Free Cash Flow | -5.15M | -42.49M | -11.97M | -13.21M | -12.85M | -13.17M |
| Operating Cash Flow | 11.98M | -9.96M | -11.96M | -13.19M | -12.37M | -12.21M |
| Investing Cash Flow | -50.36M | -31.99M | 22.49K | -302.37K | -475.70K | -10.61M |
| Financing Cash Flow | 59.65M | 52.01M | 3.94M | 148.90K | 6.72M | 50.34M |
Axe Compute Inc Technical Analysis
Positive
10.35
Price Trends
9.92
Positive
8.42
Positive
6.27
Positive
Market Momentum
0.60
Positive
51.95
Neutral
43.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AGPU, the sentiment is Positive. The current price of 10.35 is below the 20-day moving average (MA) of 11.41, above the 50-day MA of 9.92, and above the 200-day MA of 6.27, indicating a neutral trend. The MACD of 0.60 indicates Positive momentum. The RSI at 51.95 is Neutral, neither overbought nor oversold. The STOCH value of 43.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AGPU.
Axe Compute Inc Risk Analysis
Axe Compute Inc disclosed 46 risk factors in its most recent earnings report. Axe Compute Inc reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Axe Compute Inc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $145.47M | -0.08 | -2273.26% | ― | 204.84% | -591.53% | |
45 Neutral | $17.50M | -0.47 | -225.98% | ― | 21.86% | 73.27% | |
43 Neutral | $1.77M | >-0.01 | -2135.52% | ― | ― | 99.51% | |
43 Neutral | $8.09M | >-0.01 | -18.55% | ― | ― | ― |
* Technology Sector Average
AGPU
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11.37
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Axe Compute Inc Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Axe Compute Completes Helomics Divestiture to DataMEDS AI
Positive
Sep 17, 2026
On September 11, 2026, Axe Compute Inc. entered into a stock purchase agreement to sell its wholly owned Helomics Corporation, an AI-driven cancer diagnostics laboratory, to Health IT firm DataMEDS AI, Inc. in an all-stock transaction that closed ...
Business Operations and StrategyPrivate Placements and Financing
Axe Compute Expands AI Data Center Capacity Partnership
Positive
Aug 17, 2026
On August 17, 2026, Axe Compute Inc. announced agreements with Duos Technologies Group for 55 MW of new AI data center capacity across multiple U.S. locations, building on an existing 10 MW deployment in Georgia and representing more than $500 mil...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Axe Compute secures $1.5B AI GPU cluster deal
Positive
Jul 27, 2026
On July 27, 2026, Axe Compute announced a new five-year customer agreement worth over $1.5 billion to deploy a massive, dedicated NVIDIA Blackwell B300 GPU cluster in the United States through its Axe Compute Build program. The single-tenant, prod...
Business Operations and StrategyFinancial Disclosures
Axe Compute secures $1.3B in new AI contracts
Positive
Jul 22, 2026
On July 22, 2026, Axe Compute announced that it had secured more than $1.3 billion in new customer contracts across the United States and Europe through its Axe Compute Build program, surpassing its 2026 target of $1 billion in signed agreements. ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.