Revenue rose 412% to $1.9 million but missed estimates, while a $400.4 million fair value loss on convertible notes drove the much larger reported deficit.
SharonAI Holdings Inc. shares traded lower on Friday after the company reported second-quarter revenue of $1.9 million, up 412% from a year earlier but below estimates of $7.54 million, while net loss widened to $430.4 million from $2.6 million in second-quarter 2025. The reported deficit was largely driven by $423.8 million in non-cash items, including a $400.4 million fair value loss on convertible notes tied to share-price appreciation, even as Adjusted EBITDA turned positive at $0.6 million from a $1.7 million loss a year earlier. SharonAI has also highlighted a $4.9 billion, six-year strategic collaboration with NVIDIA, cash reserves of $1.9 billion, Total Contract Value of $8.8 billion, secured AI Factory capacity of 212MW and plans to deploy more than 64,000 NVIDIA GPUs by mid-2027. James Manning, co-founder and CEO, said revenue is expected to ramp materially from the third quarter of 2026 through 2027. Shares were down 5.04% at $49.52 at the time of publication on Friday.