Q2 2026 RUM Group Inc. Earnings Call Transcript
Key Points
- Revenue surged 61% year-over-year to $40.4 million, marking an all-time record for the company.
- Closed the acquisition of Northern Data, securing ~85.2% of shares and establishing Quake AI as a new AI infrastructure business with ~22,000 NVIDIA H100/H200 GPUs.
- Quake AI's GPU estate is running at over 85% utilization, reflecting strong execution and customer demand.
- Signed a multiyear agreement with Together AI to deploy NVIDIA HGX B300 GPU capacity, validating RUM Group as a credible independent AI infrastructure provider.
- Issued first formal revenue guidance for Q3 2026, expecting $87-$93 million, providing improved visibility for investors.
- Identified a $3 billion-plus annual revenue opportunity from monetizing 250 megawatts of unmonetized power capacity targeted for 2027.
- Rumble's video data is gaining interest from AI clients, positioning the company to capitalize on the growing demand for spatial temporal data in the robotics era.
- Net loss widened significantly to $80.3 million from $30.2 million in the prior year, driven by $28.3 million in acquisition-related transaction costs and higher depreciation.
- Cost of services increased to $30.6 million, up from $26.5 million, due to higher programming, content, and data center expenses.
- General and administrative expenses rose to $16.3 million from $11.7 million, partly due to Northern Data's payroll and administrative costs.
- Adjusted EBITDA remained negative at -$16.6 million, though improved from -$20.5 million a year ago.
- The company will discontinue reporting MAU and ARPU as headline metrics, potentially reducing transparency for video business performance.
- Dependence on Tether ad commitments is notable, with $4.8 million in Q2 revenue tied to Tether, raising concerns about revenue concentration.
- Management acknowledged challenges in securing hardware and supply for AI compute deals, though they claim to have line of sight before signing contracts.
Good afternoon, ladies and gentlemen, and welcome to RUM Group second-quarter 2026 earnings conference call. (Operator Instructions) This call is being recorded on Monday, August 10, 2026.
I would now like to turn the conference over to Shannon Devine, Investor Relations for RUM Group. Please go ahead.
Thank you, operator. I'm here today with Chris Pavlovski, Founder, Chairman and CEO of RUM Group; and Mike Masci, CFO. A press release detailing our second-quarter 2026 results was released today and available on our Investor Relations website. Before we begin the formal presentation, I'd like to remind everyone that statements made on this call may include predictions, estimates or other information that may be considered forward-looking.
All forward-looking statements are made only as of the date of this call and should be considered in conjunction with the company's cautionary statements in our earnings release and the factors included in our filings with the SEC. Future company updates will be available
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