Hyperscale Data, Inc. Issues Bold 2026 Revenue Guidance, Targets Profitability Amid AI Infrastructure Expansion

Key Highlights from Hyperscale Data’s Latest Financial Guidance and Strategic Developments

• 2026 Revenue Guidance Raised to \$180–\$200 Million: Hyperscale Data, Inc. anticipates record-breaking revenue for fiscal year 2026, projecting a significant year-over-year increase of 80% to 100% compared to its preliminary 2025 revenue of approximately \$100 million.
• Profitability Targeted for Q4 2026: The company is aiming to achieve profitability by the fourth quarter of 2026, driven by improved operating results and a higher-margin revenue mix.
• Key Contribution from Ballista Group: The anticipated revenue boost reflects the full-year consolidation of Ballista Group, Inc., following its emergence from bankruptcy and merger with Gresham Worldwide, Inc. Ballista is expected to contribute approximately \$40 million in 2026, compared to just \$3.2 million in the fourth quarter of 2025.
• Diversified Revenue Drivers: Hyperscale Data’s growth will be fueled by expanding operations in AI infrastructure, software platforms, blockchain infrastructure, finance, and digital ecosystems. These new initiatives are projected to add between \$24 million and \$44 million in 2026 revenue.
• Ault Lending Expected to Drive Profitable Growth: The company’s licensed lending subsidiary, Ault Lending, LLC, is expected to contribute \$20 million to \$30 million in revenue in 2026, with \$10 million recognized in the March quarter alone. Historically, this segment has been one of Hyperscale Data’s more profitable, though volatile, business lines.
• Capital Investments Poised to Pay Off: Management believes that significant investments in infrastructure, software, and digital platforms made in prior years will begin yielding substantial returns, supporting both revenue scaling and margin improvement.
• Potential for Upside: Management suggests that, with improving visibility into pipeline activity and subsidiary performance, the company could exceed its current revenue projections, with a mid-year update planned.
• Evolving Revenue Mix to Support Margins: The company expects higher-margin segments, such as software platforms and digital ecosystem initiatives, to contribute increasingly to revenue and margin growth, reducing reliance on capital-intensive legacy infrastructure streams.
• Strategic Divestiture Planned: Hyperscale Data intends to divest its wholly owned subsidiary, Ault Capital Group, Inc. (“ACG”), in Q1 2027. This will occur via an exchange of Series F Exchangeable Preferred Stock for Class A and B Common Stock of ACG. Only shareholders who surrender their Series F Preferred Stock in the exchange offer will receive ACG shares.
• Continued Investment in AI and High-Performance Computing (HPC): The company remains focused on AI infrastructure, including its Michigan AI data center initiative and a broader HPC strategy, positioning itself to capitalize on the global surge in demand for AI compute, large language model training, and enterprise hosting solutions.

Details for Investors and Shareholders

Shareholders should note:

• The 2026 revenue guidance and profitability target are significant, potentially price-sensitive disclosures likely to influence investor sentiment and share value.
• The full-year consolidation engagement with Ballista Group, following po
  st-bankruptcy restructuring, marks a critical change in the company’s financials and stability.
• The planned divestiture of ACG in Q1 2027 may affect the company’s business model and risk profile. Only holders of the Series F Preferred Stock who participate in the exchange offer will become ACG shareholders. This is a key corporate action that could impact share value and ownership structure.
• The announcement of potentially exceeding guidance and a commitment to provide updates as visibility improves signals management’s confidence in future performance and a focus on transparency.

Management Commentary

Milton “Todd” Ault III, Executive Chairman, emphasized the importance of 2026 as a pivotal year for Hyperscale Data, reflecting both organic expansion and the operational turnaround of Ballista. He highlighted the company’s investments in infrastructure and digital platforms, now poised to deliver material financial returns and operational efficiency.

CEO Will Horne added that the company’s focus on scalable digital platforms, alongside durable infrastructure, positions Hyperscale Data to benefit from rising AI compute demand and the growth of higher-margin business lines.

Strategic Outlook and Risks

The company’s evolving revenue mix, with increased focus on high-margin software and digital platforms, is expected to enhance profitability, particularly as fixed-cost absorption improves with revenue growth. However, continued capital expenditures in AI data centers, Bitcoin mining, and digital platform development remain a feature of the company’s 2026 plans.

Management cautions that all forward-looking statements are subject to risks and uncertainties. Actual results may differ materially due to various factors, and investors are encouraged to review the company’s filings and press releases for further details.

Contact and Further Information

For additional details, stockholders and investors should review Hyperscale Data’s public filings at www.sec.gov and visit the company’s investor relations page at hyperscaledata.com. Investor inquiries can be directed to [email protected] or 1-888-753-2235.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Forward-looking klstatements involve risks and uncertainties that may cause actual results to differ materially from those projected. Investors should consult the company’s SEC filings and their financial advisors before making investment decisions.

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