WhiteFiber's cloud revenue grew 0.4% because a departing customer paid $3.4 million to leave
The Q3 10-Q shows the growth was a $3.4 million exit fee from a customer who left, while lease liabilities rose 6.6 times in nine months. Whose money moves: anyone holding WYFI, which opened Friday at $10.34 against a $34.33 analyst target.
Vincent Jiangtwo-minute read
WhiteFiber's−10.79% — WhiteFiber, down 10.79 percent today 10-Q, filed November 10, 2026, shows how a company can grow its cloud revenue by losing a customer: third-quarter cloud-services revenue of $18.1 million included a $3.4 million termination fee from the Initial Customer who walked away, and lease liabilities rose 6.6 times in nine months 14. Whose money moves: anyone holding WYFI, which opened Friday at $10.34 against a $34.33 analyst target. 14
The growth came from a customer leaving
Third-quarter cloud-services revenue was $18.1 million, up just 0.4% from $18.0 million a year earlier 2. The entire increase came from the $3.4 million termination fee paid by the Initial Customer, the name WhiteFiber gives the anchor client whose recurring payments stopped 2. Management conceded on the call that cloud revenue fell about 18% year over year excluding the fee. 2 The filing does not split the $14.7 million remainder (total minus fee) into recurring and other items; new-customer GPU deployments supplied a partial counterweight to the departed revenue. 1
Strip out the exit fee and cloud revenue fell to $14.7 million from $18.0 million
Data
| Value | |
|---|---|
| Q3 2025 reported | $18.0M |
| Q3 2026 reported | $18.1M |
| Q3 2026 excluding fee | $14.7M |
| Q3 2026 exit fee | $3.4M |
Leases rose 6.6 times while the demand behind them stayed unnamed
While the old customer's payments disappeared, WhiteFiber signed roughly $54.5 million of new operating leases in the quarter, mostly data-center space in France, Australia and Canada on about five-year terms. 1 Operating lease liabilities jumped from $10.5 million at December 31, 2025, to $69.3 million at September 30, a 6.6-times increase in nine months. 1 The filing does not map those sites to named customers, so committed cost is visible while committed demand is not. 1 A Sydney order for about 1,200 NVIDIA−3.21% — NVIDIA, down 3.21 percent today B300 GPUs over 59 months, prepaid with 12 months of fees, does not begin until Q1 2027. 3
Analysts cut their targets and kept their Buy ratings
Analysts repriced the near term without abandoning the story: HC Wainwright cut its FY2026 loss estimate to $3.68 a share from $1.24 on November 11 while keeping a $36 target, BTIG went from $50 to $30, B 4. Riley to $32 and Needham to $37. 4 Nine of eleven analysts still rate the stock a Buy against that $34.33 average target, while the shares opened Friday at $10.34. 4 The bull case rests on NC2 and NC3, where management says demand for about 105 megawatts of 2027 capacity is substantially stronger than for NC1, with customers offering prepayments to secure scarce GPUs. 2
Analyst targets run from $30 to $37 against a $10.34 share price
Data
| Value | |
|---|---|
| Share price, Friday open | $10.34 |
| BTIG | $30 |
| B. Riley | $32 |
| Average of 11 analysts | $34.33 |
| HC Wainwright | $36 |
| Needham | $37 |
The question the market is pricing: can the $700 million of new cloud contract value signed since the last call 2 start billing before the $69.3 million of lease obligations 1 come due?
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