RUM Group Inc. (RUM) stock edged lower in Thursday's premarket trading after surging 16.63% on Wednesday following the company's record third-quarter revenue.

During the subsequent earnings call, management highlighted strong demand for Quake AI, tight GPU supply and potential price increases as customer contracts expire in early 2027.

The company reported a loss of 19 cents per share, wider than analysts' estimate of 12 cents.

Revenue surged 290% year over year to a record $96.58 million, beating the $89.10 million consensus estimate.

Quake AI Drives Record Growth

Quake AI generated $68.2 million in revenue, accounting for more than 70% of total sales in its first full quarter.

CEO Christopher Pavlovski said the company operates about 22,000 GPUs, with utilization reaching 85% in the third quarter.

He said limited supply and strong demand could support higher pricing.

Contract Renewals Could Boost Pricing

Management expects the vast majority of its H100 GPU contracts to expire by the end of the first quarter of 2027, creating an opportunity to negotiate higher rates.

Chief Financial Officer Michael Masci said prevailing H100 GPU rental rates are in the $2 range, while Pavlovski expects higher pricing and customer prepayments under renewed contracts.

Management expects higher GPU rental rates to support profitability and believes customer prepayments could help finance future AI infrastructure expansion.

Financing Challenges Cloud Expansion

However, management warned that financing conditions for AI infrastructure have tightened.

Pavlovski said funding data center and AI projects has become increasingly difficult in recent weeks.

Masci said customer prepayments could help finance future expansion as the company seeks to monetize up to 250 megawatts of additional capacity.

The company warned that a portion of its previously disclosed 250 megawatts of unmonetized capacity could be delayed beyond 2027 because of challenging market conditions.

Meanwhile, adjusted EBITDA improved to $4.4 million from a $15.1 million loss a year earlier.

However, the company reported a GAAP net loss of $89.85 million, compared with a loss of $16.26 million a year earlier.

For the fourth quarter, RUM Group forecast revenue of $88 million to $94 million, compared with analysts' consensus estimate of $91.77 million.

RUM Price Action: RUM Group shares were down 0.85% at $5.90 during premarket trading on Thursday, according to market data.