Data Center Lease Anchors Revenue: AMD Expansion Drives Growth (RIOT Q1 2026 Earnings Call)
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Riot Platforms transitioned into an active data center operator in the first quarter of fiscal year 2026 by generating $167 million in total revenue.
Accounting Adjustments Drive Net Loss Despite Inception of Lease Revenue
Riot reported a GAAP net loss of $500 million due to non-cash cryptocurrency adjustments. This net loss translated to a diluted GAAP loss per share of $1.44. Additionally, non-cash accounting items drove an adjusted EBITDA loss of $311 million.
Infrastructure Pipeline Positions Firm for Scaled Revenue Run Rate Expansion
Management expects to exit this fiscal year with an annualized operating lease revenue run rate of $37.8 million. Jason Les stated that 'access to power is a key bottleneck to data center development globally' as he forecast this run rate scaling to $55.6 million exiting the subsequent fiscal year. To support this growth, the company projects expansion capital expenditures of $3.3 million per megawatt.
Robust Operational Segments Secure Vertical Integration and Cost Efficiencies
The Bitcoin Mining segment produced 1,473 Bitcoin during the quarter. Riot generated $21 million in power curtailment credits to optimize its net energy costs. Furthermore, the Engineering segment maintained a backlog of $193.4 million to support ongoing infrastructure builds.
AMD Option Restructuring and Initial High-Margin Lease Delivery De-risk Pipeline
Jason Les explained that converting the right of first refusal into a 100-megawatt option simplifies the AMD partnership expansion. The company recognized $900,000 in operating lease revenue during the early stage of this lease. This initial delivery achieved a gross margin of 91% due to light initial operating costs.