Axe Compute Inc. (AGPU) Q2 2026 Earnings: Revenue $3.2M
AGPU — Q2 2026 Financial Report Analysis
Q2 · Fiscal year 2026 · Published by Pham Hop
Axe Compute's first full compute quarter brought $3.2M of revenue at a thin ~6% gross margin. A $13.1M fall in its ATH token reserve drove a $17.2M net loss, and cash grew only on $60.8M of customer prepayments and new stock.
Revenue
$3.2M
Net income
-$17M
Diluted EPS
$-0.87
Overview
Axe Compute is the former Predictive Oncology, a cancer drug-discovery company that renamed itself in December 2025 and now rents out GPU computing power (the chips used to train and run AI models). Q2 2026, the quarter ended June 30, was its first full quarter selling compute. Revenue rose to $3.2 million, from $35 thousand in Q1 and $3 thousand a year earlier. The company still lost $17.2 million, or $0.87 per share, compared with $2.1 million ($0.23 per share) in Q2 2025. Most of the loss, $13.1 million, came from a fall in the value of its holdings of ATH, a crypto token issued by the Aethir GPU network. The company keeps most of its non-cash reserves in that token.
Cash rose to $21.9 million from $10.8 million at year-end. That did not come from profits. Customers paid $60.8 million up front for compute not yet delivered, and the company sold about $10.8 million of new stock.
At a glance
$3.2M revenue, about 6% gross margin. All of it came from reselling GPU capacity rented from third parties. Revenue minus the cost of delivering it left $0.2 million.
$60.8M in customer prepayments. This is money received for services the company still has to deliver. It is almost three times the $21.9 million cash balance.
ATH worth $11.1M against a $94.7M cost. The token reserve is valued at about 12% of what the company paid for it.
Q2 2026 results
Metric
Q2 2026
Q2 2025
YoY Change
Revenue
$3.21M
$0.003M
n/m (compute business did not exist a year ago)
Cost of revenues
$3.01M
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n/m = not meaningful. Percentage changes from a near-zero base would produce figures in the thousands of percent, so they are left out. Operating margin is left out for the same reason: the operating loss was more than five times revenue.
Year to date, the company had revenue of $3.25 million (H1 2025: $0.11 million) and a net loss of $24.9 million (H1 2025: $4.5 million).
Where the revenue came from and what it earned
The company describes two ways of selling compute:
"Access": it rents GPU capacity from third-party operators and decentralized networks such as Aethir, then resells it. Customers can have capacity within 24–48 hours. All Q2 revenue came from this model. The 10-Q says the company acts as principal in these deals, so it books the full resale price as revenue instead of only its markup. Cost of revenues was $3.01 million against $3.21 million of revenue, a gross margin of roughly 6%.
"Build": it buys GPUs, installs them in a data center and runs them for one customer under a multi-year take-or-pay contract. Under take-or-pay, the customer pays for the committed capacity whether it uses it or not. None of this model's revenue has been recognized yet, because revenue starts only when a cluster goes live.
Revenue was concentrated. Customer A provided 49% of Q2 revenue and Customer B 27%. At June 30, one customer (Customer C) accounted for 58% of accounts receivable, which is money billed but not yet collected. The legacy drug-discovery unit (Helomics) contributed $7.6 thousand of revenue and a $0.9 million segment loss.
Operating costs other than cost of revenues grew with the new business:
General and administrative costs were $2.7 million, up from $1.9 million. The 10-Q attributes the H1 increase to severance for the former CEO, higher salaries, new compute-segment hires and more stock-based pay.
Sales and marketing rose to $1.2 million from $0.3 million.
Leaving out the crypto losses, revenue of $3.2 million fell about $4.2 million short of the $7.4 million total operating cost base.
The token reserve: why the loss is so large
In September 2025 the company adopted a "Strategic Compute Reserve" made up mainly of ATH. It got most of the tokens through a private placement paid in crypto, valued at about $173.3 million when discounted, alongside a $50.8 million cash placement. The company uses ATH to buy compute on the Aethir network, lends it for interest (about $0.1 million of income in H1), and may sell it for cash.
ATH position
June 30, 2026
Dec 31, 2025
Tokens held (unlocked)
2.66 billion
2.84 billion
Cost basis
$94.7M
$101.3M
Fair value
$11.1M
$24.4M
Locked-token receivable, net
$10.3M
$15.5M
The holdings fell only about 6% in token count over the half-year, but their value fell about 54%. The ATH price drop explains nearly all of the decline.
A second group of tokens is still locked and vests over up to about three years. The company books it as a $93.4 million receivable minus an $83.1 million fair-value adjustment, a net value of $10.3 million. Because the lock-up is valued with Level 3 inputs (estimates, not a quoted market price), this figure depends on the company's own assumptions.
Of the Q2 digital-asset loss:
$1.3 million was realized, meaning actual losses on tokens used or disposed of.
The rest was unrealized, meaning mark-to-market declines on tokens still held.
The press release calls the $13.1 million a "non-cash" loss. The realized portion is a real economic cost on tokens the company spent.
What the headline numbers hide
Operating cash flow was positive, but customer prepayments did all the work. Operating cash flow was +$17.4 million in H1 against a $24.9 million net loss. The whole gap comes from working capital:
contract liabilities (customer prepayments) rose $60.6 million;
the company paid $34.1 million up front to its own GPU suppliers ("compute prepayments");
receivables rose $3.3 million.
Leave out those prepayment flows and the business still consumed cash. The $60.8 million is owed back as service. The 10-Q expects about $29.3 million of it to turn into revenue in the rest of 2026, $7.1 million in 2027, $1.9 million in 2028 and $22.5 million in 2029.
Cash and working capital moved in opposite directions. Cash rose $11.1 million in H1, while working capital (current assets minus current liabilities) fell from $38.5 million to $17.4 million. Current liabilities grew from $4.3 million to $38.7 million, mostly because of prepayments that must be delivered within a year.
Heavy dilution. Common shares outstanding rose from 4.08 million to 11.38 million in six months, mostly from exercises of pre-funded warrants. Another 9.97 million pre-funded warrants remain. These can be exercised for a nominal $0.01 each and are already counted in the per-share loss. The company raised $10.3 million net under its at-the-market (ATM) share sales in Q2, with about $83.0 million of that program left. It also has a $10 million standby equity line and a $1 billion shelf registration declared effective on July 20, 2026. More share issuance is the main funding route the filing describes.
Adjusted versus reported loss. Management's adjusted EBITDA was about –$4.9 million. It adds back $11.8 million of unrealized digital-asset losses, $0.6 million of stock-based pay and small depreciation and interest items. Even on that basis the business lost money, including about $0.9 million from the legacy drug-discovery unit.
No going-concern warning. The 10-Q contains no "substantial doubt" language. Management says cash, the ATH reserve (including 1.6 billion more tokens expected to vest within 12 months) and the ATM give it enough liquidity for the next twelve months. It also acknowledges that a further drop in ATH "has the potential to pressure our ability to fund operating expenses." The accumulated deficit is $438.4 million.
Capital spending has started, but the assets aren't earning yet. The company spent $17.1 million on GPU equipment for its $260 million April contract (2,304 NVIDIA B300 GPUs over 36 months). The equipment was still classed as construction in progress at June 30, so it is not yet being depreciated or producing revenue.
The contract backlog, and what the 10-Q does and doesn't say
After the quarter, in July 2026, the company signed three "Build" contracts in the US and Europe with a stated total contract value of more than $2.8 billion. The 10-Q gives this one sentence in its subsequent-events note. It does not name the customers or give the capital spending needed or how the GPUs would be financed.
For scale, the whole balance sheet was $100.4 million at June 30. The one Build contract with more detail, the $260 million April deal, needs a dedicated cluster and 4.8 megawatts of power. The risk factors state that the Build model "will require substantial and growing capital expenditures." They add that the company expects to fund it with customer deposits, cash from operations, equity and debt, "which may not be available to us on favorable terms, or at all." Contract value is not the same as revenue that is certain to arrive. It turns into revenue only if the clusters are financed, built and switched on.
Takeaway: The first compute quarter showed real revenue ($3.2M), but at a gross margin of about 6%. Cash grew only because customers prepaid $60.8M and new stock was sold. The ATH token reserve backing the balance sheet is worth about 12% of its cost. The $3B-plus contract backlog is the investment case, and the filing does not yet show how the company will pay for the GPUs needed to deliver it.
Other developments
Legacy business sold (September 11, 2026). The company sold Helomics, its last drug-discovery unit, to DataMeds AI (NASDAQ: MEDS). It received 636,328 DataMeds shares (19.99% of that company) and a $1.36 million convertible note, both locked up for 12 months. The company also agreed to pay the remaining base rent on Helomics' two Pittsburgh leases. That removes the roughly $0.9 million quarterly segment loss from Q4 onward. Q3 will show the effect of the sale.
Management changes: Kyle Okamoto became President on April 1, 2026, and Jeremy Yaukey-Witter became CFO on May 18, 2026.
Outlook
The company does not give financial guidance. Its stated priorities for the rest of 2026 are:
bring the $260 million cluster live in Q3 2026, which management says would add about $21 million a quarter of revenue over 36 months;
start deploying the more than $2.8 billion of July contracts;
add enterprise contracts (the CEO said he expects another $2 billion signed by year-end);
dispose of the drug-discovery business, which is now done.
Our read: The Q3 10-Q will be the first real test.
Did the B300 cluster go live on schedule, and what gross margin does a Build contract earn compared with the ~6% from reselling?
How much of the $60.8 million in prepayments turned into revenue, as the company's own schedule expects about $29 million in H2?
How were the GPUs for the July contracts financed, and at what cost to shareholders in new shares or new debt?
Until the filings answer those questions, the stated backlog is best treated as a plan, not a forecast. The ATH price will keep moving the reported bottom line every quarter.