ChronoScale Reports $71.6 Million Revenue Decline, Focuses on Cloud Business After Rebranding

ChronoScale Holdings Corporation has reported its financial results for the fiscal year ending May 31, 2026, revealing a total revenue of $71.6 million, a decrease of 15% from $84.4 million in the previous fiscal year. The decline in revenue was primarily attributed to the loss of a significant customer in December 2024. Despite the drop in revenue, the company managed to reduce its total costs and expenses by 22%, from $139.7 million to $109.1 million, leading to an operating loss of $37.5 million, an improvement of 32% compared to the previous year's loss of $55.3 million. The net loss for the year was $50.3 million, down from $72.7 million in the prior year.

In terms of strategic developments, ChronoScale has undergone significant organizational changes, including a business combination with Applied Digital Cloud Corporation on May 5, 2026, which resulted in the rebranding of the company. Following this, the Board of Directors committed to divesting the Legacy Ekso Business, which has been classified as "held for sale." The divestiture is expected to be completed during fiscal year 2027. The company is now focusing its operations solely on its Cloud Business, which provides GPU-based cloud computing services.

Operationally, ChronoScale's Cloud Business has seen a concentration of revenue from a single customer, Together AI, which accounted for 100% of its revenue for the fiscal year. The company has secured a master terms of service agreement with Together AI, which provides access to dedicated NVIDIA H100 GPU infrastructure across multiple clusters. As of May 31, 2026, the company had deployed a total of 6,144 GPUs and is planning to expand its capacity further. The company also entered into a strategic partnership with Microsoft to deploy approximately 50 megawatts of AI compute capacity, expected to enhance its market position in high-performance digital infrastructure.

Looking ahead, ChronoScale's management has expressed optimism about its liquidity position, with cash reserves of $9.7 million and access to additional financing through a recently established Grid Note with Applied Parent, which allows for up to $100 million in funding. The company anticipates that its available liquidity will exceed forecasted cash commitments by approximately $61 million through August 2027. However, the company acknowledges the risks associated with customer concentration and the need to diversify its customer base to mitigate potential revenue impacts in the future.