Exascale Labs Reports 111.3% Revenue Growth to $14.8 Million, Net Loss Increases to $12.2 Million

Exascale Labs Holdings Inc., formerly known as D. Boral ARC Merger Corporation, reported significant financial developments in its recent 10-K filing for the fiscal year ending June 30, 2026. The company generated total revenues of $14.8 million, marking a 111.3% increase from $7.0 million in the previous fiscal year. This growth was primarily driven by a substantial rise in revenue from its intelligent computing power services, which surged by 124% to $14.7 million, accounting for 98.9% of total revenue. However, the company also reported a net loss of $12.2 million, an increase from a loss of $7.7 million in the prior year, attributed to rising operating expenses and changes in the fair value of simple agreements for future equity.

The filing highlighted several strategic developments, including the completion of a business combination on August 27, 2026, which allowed Exascale to transition from a private to a public company. This merger resulted in the conversion of all outstanding simple agreements for future equity into shares of Class A common stock, effectively eliminating liabilities totaling approximately $29.1 million. The company also reported a significant increase in its average contracted GPU supply, which rose from 935.3 GPUs to 1,294.7 GPUs, reflecting its efforts to expand capacity and meet growing customer demand.

Operationally, Exascale reported a diversified customer base, serving nearly 50 distinct clients as of June 30, 2026. The company noted a high customer renewal rate of approximately 68%, down from 90% in the previous year, indicating some challenges in retaining existing customers. The average revenue per customer increased significantly, from $250,000 to $570,000, driven by higher service utilization and the addition of new customers. The company also expanded its geographic footprint, with notable revenue contributions from markets such as the United States and Singapore.

Looking ahead, Exascale's management expressed optimism about future growth, supported by a cash position of $4.9 million as of June 30, 2026, and a cash flow forecast indicating sufficient liquidity to fund operations for at least the next twelve months. However, the company acknowledged ongoing challenges, including reliance on third-party GPU suppliers and the need to manage operating expenses effectively. The filing underscored the importance of strategic partnerships and continued investment in technology to enhance service offerings and operational efficiency as the AI infrastructure market evolves.