> ## Content Index > Fetch the complete content index at: https://www.sotkn.com/llms.txt > Use this file to discover other available public pages before exploring further. # What Does QumulusAI Do? The Signed Book and the Dark Megawatts - URL: https://www.sotkn.com/stack/neoclouds/what-does-qumulusai-do/ - Published: 2026-11-05T05:01:31.000Z - Updated: 2026-11-05T05:01:31.000Z - Description: QumulusAI places NVIDIA GPUs in colocation halls and sells the hours, and the June quarter billed $6.7 million while the company later put the signed book at $523.4 million. - Author: Sean - Tags: #layer-neoclouds QumulusAI places NVIDIA GPUs in colocation halls and sells the hours, and the June quarter billed $6.7 million while the company later put the signed book at $523.4 million. ## Numbers that matter | Number | What it is | Why it matters | | ------------------ | -------------------------------------------------------------- | ------------------------------------------------ | | **$6,712,805** | Revenue, quarter ended 30 June 2026 | The quarter that has a filing | | **$6,882,154** | Depreciation and amortization, same quarter | Larger than the revenue above it | | **$173.1 million** | Remaining performance obligation, direct compute, 30 June 2026 | Contracted price not yet revenue | | **$30.5 million** | Deferred revenue, 30 June 2026 | Customer cash in, not yet earned | | **$523.4 million** | Signed customer contract value, release of 15 October 2026 | A commercial book, not the June accounting cut | | **7 MW / 3.75 MW** | Billing, versus Atlanta still aimed at early 2027 | The hour that can bill, and the hall that cannot | *The first four rows are the Form 10-Q for the quarter ended 30 June 2026\. The last two are the company’s 15 October release. Signed contract value, and the “about $209 million” of annual recurring revenue in that release, are not revenue. Our arithmetic is marked as we go.* Compute power was $5,608,946, 83.6% of the quarter. The company rounds that to about 84%, from 43% a year earlier. Mining plus mining-host revenue was $1,103,859, or 16.4%. Cost of revenue was $2,242,402, so gross profit is $4,470,403 and the margin is 66.6%. The highlights round it to 67%. Depreciation of $6,882,154 sits below that margin and is $169,349 larger than revenue. ## What does it actually do? QumulusAI sells GPU time from servers in somebody else’s hall. The 15 October 2026 release puts the contracted footprint at 11.75 megawatts across six colocation sites. A direct customer pays a fixed price per hour. The Form 10-Q recognises that as the hour is delivered. A deposit paid early sits in deferred revenue until then. Marketplace hours used to go through RunPod, Inc. The filing names RunPod as the customer on that contract: QumulusAI kept the servers and received 80% of RunPod’s net revenue. By 30 June 2026 direct relationships were more than 96% of the recurring revenue base, from less than 10% a year earlier. The marketplace is now under 4% of that base, on our arithmetic. [What Runpod does](https://www.sotkn.com/stack/neoclouds/what-does-runpod-do/) is the other side of the old invoice. In the June quarter the company signed 21 new direct contracts with expected take-or-pay value of $169.7 million, about $8.1 million a contract. That promise is not revenue already in the June account. The deployed fleet went from 952 GPUs to 3,088, up 2,136, or 224%. The same release said 8 megawatts sat under executed lease and colocation agreements. Under agreement is not billing. On 15 October the company said the last NVIDIA B300 handoff under a $71.9 million, three-year Blackwell agreement was done, and that every GPU on that agreement was in production and billing ten weeks after signing. It names two deliveries: B200 capacity on 8 September, and B300 capacity at Kansas City on 1 October. Of the 11.75 megawatts, 7 were generating revenue that day. A further 1 megawatt was energized and scheduled for handoff at the end of October. The remaining 3.75 megawatts are metro Atlanta, sold the month before under a $211.9 million, three-year take-or-pay, and targeted for early 2027. Add the June capacity figure to Atlanta: 8 + 3.75 = 11.75\. The original 8 megawatts are the near-term halls. Atlanta is the slice that was sold and not switched on. The same unnamed customer took both the $71.9 million agreement and Atlanta. The release adds those two and gets $283.8 million, excluding extensions. A separate $29.1 million agreement is for another site. The 25 August release names DRW as a GPU-as-a-service customer and does not attach a dollar figure, so this page does not either. ## How does it make money? Once a hall is handed over, the earn is the reserved hour. Before that, the signature does not bill. On 15 October the chief executive said the $6.7 million quarter “reflected what we had deployed, not what we had sold.” The sold figure in that release is $523.4 million, which is $282.5 million at the June results plus $240.9 million. The two named September agreements, $211.9 million and $29.1 million, add to $241.0 million. The tenth is rounding inside one release. The August total already includes July. Do not stack those books. The release also quotes about $209 million a year on the initial terms, excluding extensions: about $128 million from the 8 megawatts, about $71 million from Atlanta, and the balance from the $29.1 million agreement. Our subtraction leaves about $10 million a year on that smaller agreement. Per megawatt that is $16.0 million on the 8 megawatts and $18.9 million on Atlanta’s 3.75\. Those sit on the chief financial officer’s 25 August bands: just over $16 million a megawatt on the installed base, and $18 million to $20 million on the newest Blackwell contracts. Company rates, not a billed Atlanta hour. The June cut is stricter. Direct-compute remaining performance obligation was $173,107,691 at 30 June: $34,368,785 expected during 2026, and $138,738,906 from 2027 to 2029\. Over the six months then left in 2026, the near slice is about $5.7 million a month, against $1.87 million a month of June-quarter compute revenue, about 3.1 times. Contracts signed after 30 June are outside that timetable. Deferred revenue was $30,460,939 at 30 June, from zero at the prior year-end. Operating cash flow for the half was $22,305,214\. Without that build, operating cash flow is an outflow of $8,155,725\. The deposit is why the line is positive, and it is a liability until the hour is delivered. Net receivables rose to $11,058,423 from $57,889. Who is paid before QumulusAI keeps anything: - **The hall.** Cost of revenue was $2.2 million. The chief financial officer said activations grew revenue faster than colocation costs. That sentence is the 66.6% gross margin. It does not pay for the GPU. - **The finance lessor.** Finance-lease cost was $5,213,870, about 78% of the quarter’s revenue: amortization $3,783,212 plus interest $1,430,658\. Owned depreciation of $3,054,701 and intangible amortization of $44,241 bring the total to the $6,882,154 line. Cash repayments were $6,518,746 in the half, with $9,298,519 still due later in 2026\. The liability was $45,776,169 at a 14.01% discount rate. The filing says those leases are with four related parties. - **USD.AI and the note.** A September 2025 facility allows stablecoin borrows against up to 70% of approved GPU deployments, with no duty to draw. Outstanding at 30 June: $18,913,377\. A further $15.3 million draw closed on 7 August. The convertible note was carried at $55,481,000, plus a $38,721,000 option liability. The quarter includes a $19,241,000 non-cash loss on issuance. Cash from the note in the half was $28,800,000. On 22 October, Tech Finance Co. lease financing was about $123.6 million, from $26.0 million on 7 May. TFC covers 85% to 90% of equipment cost. Customer deposits cover the rest. No new equity. The company describes a high-single-digit rate over three years, with an option to buy the kit or return it. That contract is not the June related-party book at 14.01%, and it is not inside the $45.8 million liability. ## What limits it? The stuck step is handoff, not a shortage of signatures. On 15 October the company said every megawatt under contract was sold, and 3.75 megawatts were still aimed at early 2027\. The $211.9 million Atlanta agreement does not become revenue because it was announced. [Cluster acceptance](https://www.sotkn.com/explained/gpu-cluster-acceptance-explained/) is the day a term can start. Interest and depreciation do not stand behind that day. In the June quarter the machines cost more than the company billed. One customer is a large share of the commercial book. The $283.8 million on the Blackwell buyer is 54.2% of the $523.4 million signed total. The August release already lists dependence on a limited number of large customers as a risk. Cash at 30 June was $19,967,188\. Restricted cash of $19,925,104 unlocked with the 16 July direct listing. That listing sold no new shares. Stock sales in the half were $5,980,834\. Liabilities of $215,783,480 against assets of $215,002,216 leave a shareholders’ deficit of $781,264, and an accumulated deficit of $109,788,460\. The filing says losses and debt funding raise substantial doubt about continuing as a going concern for a year from issuance. Management says that doubt is alleviated by the restricted cash, the 7 August USD.AI draw, and July contracts of about $103.9 million that brought about $20.9 million of deposits. Those are the company’s plans, not the October signed book. Server equipment rose from $12,146,199 to $46,541,227 in the half. High-performance gear is depreciated over three to seven years, so a three-year contract sits on the short end of the asset’s life. Equipment deposits were $26,022,880, including $14,146,100 added in the half: cash with suppliers, not yet revenue. The 25 August release also says the company purchased 1,632 Blackwell B300 GPUs after the quarter. That purchase is not part of the 3,088 GPUs deployed at 30 June. ## Who else does this? [A neocloud](https://www.sotkn.com/explained/neocloud-explained/) finances the GPU, places it where there is power, and is paid when the hour is delivered. QumulusAI follows that loop and does not publish utilisation or a price per GPU-hour. The rate it does publish is the megawatt-year figure above. [CoreWeave](https://www.sotkn.com/stack/neoclouds/what-does-coreweave-do/) writes the same take-or-pay shape on a fleet that is already billing at another scale. The term starts on a date or when capacity is delivered. The lesson that travels is the on-switch. [Take-or-pay](https://www.sotkn.com/explained/take-or-pay-gpu-contracts-explained/) is the clause. [Remaining performance obligation](https://www.sotkn.com/explained/remaining-performance-obligation-explained/) is the accounting remainder. QumulusAI prints both, and they are not substitutes: $173.1 million of direct-compute RPO at 30 June, and a larger signed total that moves in later releases. [Runpod](https://www.sotkn.com/stack/neoclouds/what-does-runpod-do/) kept 20% when it stood in front of these servers, and by June it was no longer the book. Runpod sells per-second hours and files no accounts. QumulusAI files and leases the GPUs. [Lambda](https://www.sotkn.com/stack/neoclouds/what-does-lambda-do/) uses a delayed-draw loan. The funding here is the related-party lease, the USD.AI draws, the note, the deposit, and the October TFC lease. [Nebius](https://www.sotkn.com/stack/neoclouds/what-does-nebius-do/) takes a heavier prepay. The deposit on this page is real, and still small beside the signed book. ## What would change this view? The view is that signatures have run ahead of billed hours, that the 66.6% gross margin stops above the GPU, and that Atlanta is the dark megawatts. A September quarter still near $6.7 million of revenue, after 7 megawatts were said to be generating revenue on 15 October, would mean the handoff had not become a GAAP hour. Compute revenue stepping toward the $34.4 million the June RPO assigned to the rest of 2026 would mean the near book is billing. Contracts after 30 June sit outside that $34.4 million, so a larger print does not prove Atlanta. Read on 5 November 2026, there is no later notice that the end-of-October megawatt handed over, so it is not treated as billed. A slip of the 3.75 megawatts past early 2027 would lengthen the same step. Receivables rising faster than revenue would put the 54% customer share into cash. Use of the TFC return option, or a USD.AI draw that does not come, would leave depreciation running on kit already installed. The filing already says that facility may not fund the next GPUs. A later gross margin that still covers depreciation and the lease would retire the line that the margin stops above the GPU. June does not show that. ## Practical takeaways - Read the June RPO and the deferred-revenue line before the $523.4 million. One is unsatisfied transaction price at a balance-sheet date. One is cash that is still a liability. The signed total is the commercial book, and it is not revenue. - Put the 66.6% gross margin next to the $6.9 million depreciation line and the $5.2 million finance-lease cost. Colocation is inside cost of revenue. The GPU is below it. This quarter the machines cost more than the company billed. - The open question is the dark 3.75 megawatts, not an empty order book. The company said the 11.75 megawatts under contract were sold. The clock that has not started is Atlanta. Not investment advice. Do your own research. ## FAQ **What does QumulusAI do?** QumulusAI sells NVIDIA GPU hours from servers it places in colocation halls. Direct customers pay a fixed price per hour. A take-or-pay contract bills the reserved block after capacity is handed over. On 15 October 2026 the company said 7 megawatts were already generating revenue and 3.75 megawatts in Atlanta were still targeted for early 2027. **How does QumulusAI make money?** It is paid when compute is delivered. In the quarter ended 30 June 2026, revenue was $6,712,805 and compute power was $5,608,946\. Customer deposits sit in deferred revenue until the hour is delivered. That balance was $30.5 million at 30 June. Gross margin of 66.6% is revenue minus cost of revenue, before depreciation of $6.9 million. **Why is signed contract value larger than revenue?** The 15 October release put signed customer contract value at $523.4 million. The June quarter billed $6.7 million. The chief executive said that quarter reflected what had been deployed, not what had been sold. Remaining performance obligation on direct compute was $173.1 million at 30 June. The signed total is a later commercial figure and includes agreements signed after that date. **What is stuck?** Handoff. Depreciation, lease interest, and the lessor’s payments do not wait for a hall to go live. The $211.9 million Atlanta agreement was sold and, as of the 15 October release, targeted for early 2027\. One customer’s $283.8 million is 54.2% of the signed book, on our arithmetic. **Is this a recommendation to buy or sell anything?** No. This page explains how QumulusAI makes money and where it can get stuck. It gives no buy or sell calls. Not investment advice. Do your own research. ## Keep reading on the map Layer: [Neoclouds](https://www.sotkn.com/stack/neoclouds/). On the same layer: [CoreWeave](https://www.sotkn.com/stack/neoclouds/what-does-coreweave-do/), [Runpod](https://www.sotkn.com/stack/neoclouds/what-does-runpod-do/), [Lambda](https://www.sotkn.com/stack/neoclouds/what-does-lambda-do/), and [Nebius](https://www.sotkn.com/stack/neoclouds/what-does-nebius-do/). Explained: [what a neocloud is](https://www.sotkn.com/explained/neocloud-explained/), [take-or-pay GPU contracts](https://www.sotkn.com/explained/take-or-pay-gpu-contracts-explained/), [remaining performance obligation](https://www.sotkn.com/explained/remaining-performance-obligation-explained/), and [GPU cluster acceptance](https://www.sotkn.com/explained/gpu-cluster-acceptance-explained/). Markets: [United States](https://www.sotkn.com/markets/us/). [Get the Wire](https://www.sotkn.com/#/portal/signup) — short daily notes when GPU hours, leases, and handovers move. Not investment advice. Do your own research. ## How we check this Quarter figures are QumulusAI’s Form 10-Q for the quarter ended 30 June 2026 and Exhibit 99.1 filed 25 August 2026\. The signed book, the megawatts, and the annual split are the 15 October 2026 release. The TFC lease is the 22 October 2026 release. Read on 5 November 2026\. Neither a September-quarter Form 10-Q nor a notice of that end-of-October handoff was among them. Our arithmetic is the shares, gaps, and per-megawatt rates above, including 8 + 3.75 = 11.75 and the depreciation pieces adding to $6,882,154\. Who gets paid, and the stuck step, are our read. The featured image is an illustration, not a photograph of a QumulusAI hall. Not investment advice. Do your own research. **Last reviewed:** 5 Nov 2026 · **Next review:** the Form 10-Q for the quarter ended 30 September 2026, or a company notice that the Atlanta 3.75 megawatts are live, whichever comes first Spot an error? Tell us through [our editorial standards](https://www.sotkn.com/editorial-standards/) and we will correct it and note the change here. ## Sources 1. [QumulusAI Form 10-Q, quarter ended 30 June 2026](https://www.sec.gov/Archives/edgar/data/2084026/000143774926028924/quma20260630%5F10q.htm?ref=sotkn.com) 2. [QumulusAI Exhibit 99.1, second-quarter 2026 results (25 August 2026)](https://www.sec.gov/Archives/edgar/data/2084026/000143774926028918/ex%5F1008743.htm?ref=sotkn.com) 3. [QumulusAI — Blackwell agreement in production; signed contracts $523.4 million (15 October 2026)](https://www.businesswire.com/news/home/20261015115191/en/QumulusAI-Puts-71.9-Million-Blackwell-Agreement-into-Production-Signed-Customer-Contracts-Surpass-500-Million?ref=sotkn.com) 4. [QumulusAI — TFC equipment leases expanded to about $123.6 million (22 October 2026)](https://www.businesswire.com/news/home/20261022858080/en/QumulusAI-Expands-Closed-Lease-Financing-With-TFC-to-123.6-Million-Funding-Its-NVIDIA-Blackwell-GPUs-Without-New-Equity?ref=sotkn.com)