SharonAI Holdings, Inc. Class A Common Stock Q1 Earnings Call Highlights

Key Points

• SharonAI said Q1 momentum was driven by three new customer contracts, including ESDS and GMI Cloud, plus a post-quarter $950 million deal, lifting total contracted value to more than $2.2 billion and supporting an exit-2026 revenue run rate of at least $470 million.
• The company raised its expected data center capacity from 70 MW to more than 100 MW by early 2027, with new supply coming through partners in Australia and New Zealand as it works to match megawatts to customer demand.
• Storage is becoming a bigger part of SharonAI’s GPU infrastructure offering, with customers requesting far more storage than standard Nvidia reference designs and management calling it a high-margin driver of customer stickiness and renewals.

SharonAI Holdings, Inc. Class A Common Stock NASDAQ: SHAZ used its first earnings call as a Nasdaq-listed company to highlight a rapid expansion in contracted AI compute demand, new data center capacity and a growing focus on storage as part of its GPU infrastructure offering.

Chairman, CEO and Co-Founder James Manning said the quarter ended March 31, 2026, was “an amazing 1st quarter” as the company transitioned to public markets. Manning was appointed CEO in January, replacing Wolf Schubert, who continues to work with SharonAI on North American projects. The company listed on Nasdaq in February under the ticker SHAZ in a transaction with Soar and raised $125 million led by Lucid Capital, according to Manning.

SharonAI describes itself as one of Australia’s leading “NeoClouds,” providing AI-native, high-performance computing-grade infrastructure for hyperscalers, AI-native companies and enterprise customers. Manning said the company’s model centers on deploying latest-generation GPU compute through partnerships with data center operators, OEMs and infrastructure providers.

Contract wins lift total contracted value

Manning said SharonAI signed three meaningful customer contracts during the quarter. The company formalized an agreement with Canva through a master services agreement, signed GMI Cloud, and executed a contract with ESDS, an India-based IT services provider. Manning said the ESDS contract is worth $1.25 billion in total contract value over five years, with revenue expected to begin in September 2026.

The CEO also pointed to a contract announced after the quarter: a $950 million, five-year take-or-pay agreement with a global technology company with a major Asia-Pacific presence. Revenue from that deal is expected to begin in the third or fourth quarter of 2026.

“Cumulatively, this takes our TCV to more than $2.2 billion contracted, and we expect our exit 2026 revenue run rate of at least $470 million,” Manning said.

Manning said SharonAI generally targets five-year or longer contracts, often structured as take-or-pay agreements. He said that structure gives the company revenue visibility because customers are paying for full utilization. In response to a question from Alex Frohman of Lucid Capital Markets, Manning said the ESDS contract includes two one-year options, potentially extending the agreement to seven years, with decisions on later-year renewals occurring in year four.

Data center capacity target rises to more than 100 MW

SharonAI said it has increased expected data center capacity from 70 megawatts in 2026 to more than 100 megawatts by early 2027. Manning said the company had previously secured 50 megawatts with NEXTDC in late 2025 and has continued to add power allocations through data center partners.

In the Q&A, Manning said the company is focused on matching available megawatts with customer demand. He cited “M2,” a 40-megawatt project in Melbourne expected in the fourth quarter, as a key next project. Manning said a contiguous 40-megawatt block would likely be suited to a large single customer, such as a hyperscaler, a large language model company or a major AI-native enterprise, rather than being divided among smaller enterprise customers.

Asked about additional capacity beyond the newly announced 100 megawatts, Manning said SharonAI is confident it has more megawatts in its pipeline but is not trying to “get over our skis” with guidance. He said some of the newly announced 30 megawatts is in Australia and some is in New Zealand, and that the company intends to remain focused on its geographic region.

Storage emerges as a key growth driver

Several parts of the call focused on storage as an increasingly important part of SharonAI’s offering. Manning said storage contributes to customer “stickiness” and can help drive renewals because customer data remains on SharonAI’s infrastructure over time.

In response to Michael Donovan of Compass Point, Manning said SharonAI is seeing roughly $15 million per megawatt in revenue, including an allowance for storage. He said the Nvidia reference architecture might suggest 3 PiB of storage for a 1,000-GPU cluster, but SharonAI is now seeing customer requests for 6, 9 and 12 PiB — or three to four times the standard storage component.

Manning described storage as a high-margin value-added component and said customers may request additional storage after they have been using SharonAI’s GPU platform for several months. He also highlighted SharonAI’s relationship with VAST Data, saying VAST provides the storage layer alongside the GPU infrastructure and offers tools that help AI compute access the data layer efficiently.

GPU supply, capital spending and financing

SharonAI said customer demand for GPU compute continues to materially outweigh available supply in Australia and the broader Asia-Pacific region. Manning said the company’s status as one of Australia’s Nvidia cloud partners, along with relationships with OEMs and partners such as WWT, helps it access and deploy GPUs.

Responding to Brett Knoblauch of Cantor Fitzgerald, Manning said capacity remains constrained in 2026. For GB300 deployments, SharonAI is generally seeing 12- to 14-week lead times for GPUs, while networking equipment has a longer lead time. Manning said the company has pre-ordered network and storage components to shorten deployment timelines.

On capital spending, Manning said SharonAI is already incurring some costs and has pre-ordered storage and networking. He said the company has purchased storage sufficient for about 70,000 GPUs and is currently guiding to approximately $39 million per megawatt in all-in capital costs, including non-recurring data center costs.

Manning said the company is funded for currently announced contracts through equity proceeds, customer deposits and an Oaktree note expected to close early the following week. In closing remarks, he also referred to a previously announced $350 million convertible note. Manning said SharonAI has appointed Jardine domestically for GPU financing and has several term sheets, adding that the company is “very well advanced” in negotiating the debt component.

Texas project generates $74 million

Beyond its core GPU infrastructure business, SharonAI discussed the sale of Texas Critical Data Centers, or TCDC. Manning said the company established the joint venture with New Era Energy & Digital in January 2025, acquired more than 438 contiguous acres of land in two transactions, completed engineering design work and signed a non-binding letter of intent with a hyperscaler.

SharonAI ultimately exited the project in January 2026, realizing $74 million. Manning said such development opportunities are not core to SharonAI’s business and are not expected to be a material part of the company going forward, but he said they can be profitable and may provide non-dilutive capital to accelerate the company’s GPU business.

“We continue to see both Australian and rest of world client demand materially outweigh the GPU supply coming to market at scale and in a timely manner,” Manning said. He added that SharonAI is seeing strong demand across enterprise, hyperscale, research, government and AI-native sectors throughout Australia and Asia-Pacific.

About SharonAI Holdings, Inc. Class A Common Stock NASDAQ: SHAZ

SharonAI Holdings Inc is a high-performance computing (HPC) company deploying large-scale energy and compute infrastructure, USA energy markets and infrastructure asset management. Its services include: Sovereign AI Australia, GPU-as-a-Service, SHARON AI Cloud, SHARON AI Private Cloud, Virtual Private Clusters, HPC Servers, SHARON AI Supercluster, GPU Fleet, Virtual Servers, Cloud Storage, AI Model Training, High-Performance Computing (HPC), and Video Encoding & Decoding. The company's products are: Sovereign AI Australia, GPU-as-a-Service, SHARON AI Cloud, SHARON AI Private Cloud, Virtual Private Clusters, HPC Servers, SHARON AI Supercluster, GPU Fleet, Virtual Servers, Cloud Storage, AI Model Training, High Performance Computing (HPC), and Video Encoding & Decoding.

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