WhiteFiber Inc. (WYFI) had a choppy Tuesday. The company reported weaker-than-expected third-quarter results, missing analyst estimates on both earnings and revenue. CEO Sam Tabar pinned the shortfall on delays in ramping up the company's NC-1 data center in North Carolina.

But here's the turn: Tabar said NC-1 is now fully operational across its 40-megawatt (MW) contracted capacity. The company has also started billing customers for the full capacity. That's the kind of sentence investors like to hear after a miss.

Tabar said WhiteFiber expects a substantial revenue ramp in 2027 as newly signed cloud contracts begin generating recurring revenue. He added that the company is focused on turning those deals into cash flow while expanding selectively to limit investment risks.

WhiteFiber Secures $700 Million in Cloud Contracts

Since August, WhiteFiber has signed more than $700 million in cloud services contracts with five customers. The deals also expanded its operations into Sydney and Dublin.

The company expects its contract portfolio to generate about $365 million in annualized revenue by mid-2027.

As of Sept. 30, WhiteFiber had $729 million in remaining performance obligations and $421.5 million in future lease payments excluded from that figure.

WhiteFiber also launched Continuum, a platform that connects multiple data centers into a single GPU supercluster.

WhiteFiber Earnings Miss Wall Street Estimates

WhiteFiber reported an adjusted quarterly loss of 50 cents per share, wider than the analyst estimate of a 40-cent loss.

Revenue totaled $24.02 million, missing Wall Street's estimate of $29.76 million.

Cloud Services revenue edged up 0.4% to $18.1 million, including $3.4 million in customer termination fees.

Meanwhile, Colocation revenue surged 232% to $5.6 million, driven by MTL-3 and the September launch of NC-1.

Operating loss narrowed to $12.4 million from $14.5 million a year earlier.

However, the company recorded an $80.8 million expense tied to the conversion of part of its 2031 convertible notes. The adjusted per-share loss excludes this expense.

Adjusted EBITDA was roughly break-even, compared with $2.3 million a year earlier.

WhiteFiber ended September with $147.6 million in cash and restricted cash.

WYFI Price Action: WhiteFiber shares were up 0.73% at $9.640 at the time of publication on Tuesday, according to market data.