Zone Frontier Inc. Class B (ZONE) FY2026 Earnings: Revenue $3.4M (+64.3%)
ZONE — FY2026 Financial Report Analysis
Full Year · Fiscal year 2026 · Published by Pham Hop
Zone Frontier (formerly CleanCore) lost $174.2M in FY2026, two-thirds of it on a now-abandoned Dogecoin treasury, on $3.4M of cleaning-product revenue, and ends the year with a going-concern warning while it pivots to AI data centers.
Revenue
$3.4M
+64.3% YoY
Net income
-$174M
Diluted EPS
$-1.04
Operating margin
-1702.0%
This period vs a year ago
Same period last year
This period
Revenue▲+64.3%
≈$2.1M
$3.4M
Year-ago figures (≈) are worked out from the growth rate the company reported. Each row has its own scale.
Zone Frontier (formerly CleanCore Solutions, renamed on August 31, 2026) lost $174.2 million in the fiscal year ended June 30, 2026, on just $3.4 million of revenue. Two-thirds of that loss, $116.3 million, came from a Dogecoin bet the company made in September 2025 and has since abandoned. The year covered by this 10-K belongs to a company that no longer exists in that form. During the year it ran three things at once: a small cleaning-products business, a Dogecoin "treasury" (buying and holding the cryptocurrency as its main asset), and, from June 2026, a plan to build data centers for AI companies. After year end it sold all its Dogecoin, put the cleaning business up for sale, and signed a 10-year lease with AI chipmaker Cerebras Systems for a Minnesota data center that isn't finished yet. So this annual report records losses from a strategy the company has left behind. The business it wants to be judged on has no revenue yet.
At a glance
$116.3 million lost on Dogecoin. The company bought about $148.6 million of Dogecoin with cash and received another $26.3 million in crypto from investors. By June 30 the tokens it still held were worth $33.5 million against a $110.8 million cost. It sold them all on July 20, 2026 for about $33.4 million.
$3.4 million of revenue, up 64%, all from cleaning products. That's the business the company now plans to sell. Most of the growth came from a full year of the Irish operation it bought in April 2025.
$15.4 million of cash at year end, plus a going-concern warning. The auditor and management both say there is "substantial doubt" the company can keep operating for the next 12 months without raising more money. It raised $100 million in August 2026, which paid for new shares on a scale that multiplies the share count again.
What the company is now
The 10-K's own description: Zone provides "powered land and state-of-the-art data center facilities, in conjunction with our development partners." Put simply, it finds sites that already have large electricity connections and builds data-center campuses on them, working with outside developers. Then it leases the space to AI companies that need computing capacity. The stated goal is to support more than one gigawatt of computing power by 2030. For scale, one gigawatt is roughly the output of a large power plant.
Two projects exist so far, both announced after the fiscal year ended:
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Project
Size
Tenant
Expected revenue start
Minnesota (flagship)
40 MW of computing load (55 MW of grid power)
Cerebras Systems, 10-year lease, plus two optional 10-year extensions
First calendar quarter of 2027, fully online by end of Q2 2027
West Texas (with HST Technologies)
200 MW initial phase, possibly more than 500 MW by 2030
None named
First half of calendar 2028
The company says the Cerebras contract is worth "over $800 million" for the first ten years and could reach "over $3 billion" if Cerebras uses both extensions. Divided evenly, $800 million over ten years is roughly $80 million a year, more than 20 times the $3.4 million of revenue in this report. That's the whole investment case, and none of it appears in these financial statements. During the year the AI segment had no revenue and an operating loss of $0.7 million, mostly legal fees.
Results
Metric
FY2026 (year to June 30, 2026)
FY2025
YoY Change
Revenue
$3.41M
$2.07M
+64.3%
Gross margin
37.8%
47.6%
-9.8 pts
General & administrative expense
$56.49M
$7.08M
+697.8%
Operating loss
-$57.98M
-$6.39M
loss 9x larger
Operating margin
-1,702.0%
-308.1%
n/m
Loss on Dogecoin (fair-value change)
-$116.32M
none
n/m
Net loss
-$174.16M
-$6.74M
loss 26x larger
Diluted EPS
-$1.04
-$0.79
loss per share 32% larger
Cash used in operations
-$18.16M
-$2.34M
7.8x more
Cash at year end
$15.44M
$1.46M
+$13.97M
Percentage changes in a loss aren't very useful, so the table describes them in words. "n/m" means not meaningful.
Revenue. All $3.4 million came from cleaning products: machines that infuse ozone into tap water to make a chemical-free cleaner for restaurants, hotels and industrial sites. Revenue rose $1.33 million. The filing says the main driver was "an increase in revenue from the Ireland location of approximately $817,000 due to a full-year of sales from Ireland." The Irish business came from buying Sanzonate's assets in April 2025, so FY2025 included only about 2.5 months of it. About 60% of the growth came from owning that business for a full year, not from selling more of the existing products.
Gross margin (the share of revenue left after the direct cost of making the product) fell from 47.6% to 37.8%. The company blames a one-time increase of about $414,000 in its inventory reserve after moving some production overseas. An inventory reserve is a write-down for stock it doesn't expect to sell at full value.
Expenses. General and administrative costs rose almost eightfold to $56.5 million. Most of that was the cost of running and then ending the Dogecoin strategy. The filing lists the largest increases:
Driver
Amount
Non-cash professional fees, Treasury segment
$23.25M
Treasury management-related expenses
$14.54M
Non-cash stock option expense
$6.02M
Impairment of cleaning-business intangibles
$1.75M
The company also wrote off all $2.24 million of goodwill on the cleaning business, shown on its own line. Goodwill is the premium paid over the book value of acquired assets. A third-party valuation done for the planned sale showed the unit was worth less than its carrying value.
By segment, the Treasury (Dogecoin) segment accounts for $156.2 million of the $174.2 million net loss. The cleaning business lost $18.0 million and the AI business had a $0.7 million operating loss.
How the Dogecoin trade lost $116 million
In September 2025 the company sold pre-funded warrants for $175.0 million. A pre-funded warrant is essentially a share bought in advance for almost the full price. Of that, $148.7 million came in cash and $26.3 million in cryptocurrency, and after fees it netted about $164.3 million. Apart from $1.1 million used to repay debt and $4.4 million kept for working capital, the money went into Dogecoin. Asset management was handed to an affiliate of the Dogecoin Foundation's commercial arm and 21Shares, for an annual fee of 2% of assets.
The Dogecoin note in the 10-K shows how the loss built up:
Item
Amount
Tokens held at June 30, 2026
464.5 million
Cost of those tokens
$110.85M
Their value at $0.072081 each
$33.48M
Unrealized loss on tokens still held
-$77.37M
Realized loss on tokens sold or used as payment
-$38.95M
Total change in fair value
-$116.32M
During the year the company sold 198.6 million tokens for $18.2 million. It also transferred 70 million tokens, valued at $6.8 million, as payment for professional services, including tokens handed over when the asset-management agreements were ended on February 27, 2026. A separate advisory contract with Dogecoin Ventures LLC was ended the same day for $5.0 million in cash plus 3.8 million shares. On July 20, 2026, after the new strategy was announced, the company sold its remaining Dogecoin for about $33.4 million, close to its June 30 value. The loss was locked in.
What the headline numbers hide
Most of the loss didn't use cash, but the cash burn still grew almost eightfold. Net loss was $174.2 million, but operating cash outflow was $18.2 million. The difference is non-cash items: the $116.3 million Dogecoin write-down, $26.5 million of professional fees paid in shares or tokens, $9.2 million of stock compensation, and $4.0 million of goodwill and intangible impairments. Even so, $18.2 million of real cash going out compares with $2.3 million a year earlier, on a business with $1.3 million of gross profit.
Much of the money raised was spent or lost within 12 months. The company brought in about $164.3 million net from the September 2025 placement and $27.3 million net from selling shares on the market during the year. At June 30 it had $15.4 million of cash and $33.5 million of Dogecoin.
Shareholders were heavily diluted, and more is coming. Shares outstanding rose from about 11.8 million (both classes) to 226.1 million. That's why loss per share rose only 32% while the net loss grew 26-fold: the loss was spread over about 20 times more shares. The August 2026 offering added up to 275.8 million shares and 124.2 million pre-funded warrants, plus warrants for another 400 million shares. The company also has a $750 million at-the-market program with Cantor Fitzgerald, which lets it sell new shares into the market over time.
The lease sits in a subsequent-events note. The Cerebras contract, the West Texas project and the Dogecoin exit all happened after June 30. Readers shouldn't treat the $800 million contract figure as revenue already won. The site is "currently under construction" and revenue depends on phased customer acceptance.
A related-party loan. In February 2026 the company lent $1.0 million for one year at 15% interest to a company that pays significant shareholder Devlin DeFrancesco as an adviser. Interest has been paid so far ($24,980 received through June 30). Principal is due February 20, 2027.
Customer concentration and working capital in the cleaning business. Two customers made up 27% and 16% of revenue. Receivables fell from $0.66 million to $0.46 million while revenue grew, so there's no sign of revenue padded with slow-paying customers. Inventory fell after $0.67 million of reserves and write-offs.
Controls and finance staffing. Management reports two material weaknesses in internal control over financial reporting, meaning its own checks on the accounting weren't reliable enough. It cites too few trained staff to keep duties separated, and too little accounting expertise to handle complex transactions and review outside valuations. The CFO retired on September 11, 2026, and the CEO is now also the principal financial and accounting officer.
Takeaway: Zone Frontier ended FY2026 with $15.4 million of cash, $33.5 million of Dogecoin (later sold for $33.4 million), a going-concern warning, and no revenue from the data-center business it now wants to be judged on. The $174 million loss is mostly a closed-out crypto bet. The open question is funding: the company must raise enough to finish the Minnesota campus before Cerebras rent starts. The equity it has sold so far has come with very heavy dilution.
Outlook
Management gave no financial guidance. Its stated timeline: the Minnesota campus brings about 55 MW of grid power and 40 MW of computing load online in phases, with revenue starting in the first calendar quarter of 2027 and the site fully online by the end of the second quarter of 2027. The West Texas project would follow, with first revenue in the first half of 2028. The cleaning business is for sale but had no binding buyer as of September 28, 2026. Until it's sold it remains in the results, and it lost $18.0 million this year.
Our read: the next few quarterly reports will show more about the company than this annual one does. Three things to watch:
Construction spending and how it's paid for. The 10-K says the company plans to fund projects with a mix of project-level equity and debt. It also warns that the data-center commitments "substantially exceed our current financial resources." Watch for a project-level loan, and whether the company can borrow against the Cerebras lease instead of issuing more shares.
Whether the Minnesota phases hit the Q1–Q2 2027 dates. Revenue only starts when Cerebras accepts each phase. Delays would push out the first revenue while costs keep running.
Share count. Current holders have been diluted about 20-fold in one year. Future equity raises at the current scale would further reduce each share's claim on any future data-center profits.
This is Zone Frontier's first report on this site, so there's no earlier outlook to check against.