HIVE Digital Technologies (YO0) Q2 2027 Earnings Report

The call was predominantly optimistic, emphasizing sequential improvements, rapid HPC recurring-revenue growth, a large power and data center pipeline, secured GPU financing and supportive Canadian policy. The positive outlook was tempered by a $78.7 million GAAP net loss, a $31.2 million equipment impairment, year-over-year declines in revenue and gross margin, lower cash, a substantial regulatory liability and ongoing Bitcoin, financing, political and permitting headwinds.

Management said new GPU cloud deals are targeted at approximately 80% EBITDA, with a $200 million ARR target targeted for end of this year and a $500 million combined ARR target for early calendar 2027; the broader HPC revenue road map includes $500 million ARR for HPC colo and $200 million ARR for GPU cloud, or $700 million ARR combined and over $500 million of projected EBITDA. Management expects to build out the Toronto Airport site for 2027 and have it go live before the end of the year, with USD 40 million of budgeted CapEx for 5 megawatts of IT load, while the illustrative GPU-cloud case implies $780 million combined ARR and a potential target of $350 million EBITDA. Management said it will protect the balance sheet, deploy cash for assets that generate near-term revenue and cash flow, complete contracted clusters and Toronto 1, and avoid using the ATM at current levels; Bitcoin mining expansion would be opportunistic, with an ASIC purchase requiring a net ROI after electrical costs of 12 months and potentially small orders at $3 a terahash.