Corvex Q3 Earnings Call Highlights

Key Points

• Revenue increased to $5 million from $3.8 million in Q2, driven by AI platform and services, while the net loss widened to $17.5 million and adjusted EBITDA remained negative at $3.2 million.
• All 7.7 megawatts of planned critical IT capacity are under contract; 1.5 megawatts are live, with the remaining 6.2 megawatts expected to be ready for service in Q4 2026. Corvex is still in discussions—not finalized agreements—for major customer deals at both expansions.
• Corvex ended the quarter with $42 million in cash, boosted by private-placement and equipment-financing proceeds. Its new Token Factory inference service launched in September, with management expecting a meaningful revenue contribution beginning in 2027.

Corvex NASDAQ: MOVE reported higher third-quarter revenue as it brought more AI computing capacity online, while executives said two data center expansions remain on track to be ready for service in the fourth quarter of 2026.

Revenue rose to $5 million from $3.8 million in the second quarter, all from AI platform and services. The company’s net loss widened to $17.5 million from $12.8 million, while adjusted EBITDA remained negative $3.2 million.

Chief Financial Officer Chance Moreland said the sequential comparison was more useful than a year-over-year comparison because periods before Corvex’s March 2026 merger contained only the legacy healthcare business.

Capacity Expansion and Customer Talks

Co-Founder and Co-CEO Jay Crystal said all 7.7 megawatts of critical IT capacity in the company’s August plan are under contract. Of that total, 1.5 megawatts are live, while the remaining 6.2 megawatts across Midwest 1 and the Mid-Atlantic 1 expansion are on track to be ready for service in the fourth quarter.

Crystal stressed that ready for service means a facility is powered, cooled and otherwise prepared to begin operating a computing cluster. Customer compute goes live and revenue begins later, after hardware delivery, installation and commissioning.

At Mid-Atlantic 1, Corvex is in final discussions with an AI-native company to take more than 1,000 NVIDIA Blackwell GPUs for three years, Crystal said. He also said talks for Midwest 1 were progressing, with Corvex seeking a customer with strong credit quality and the potential to contract for the full data center. Neither agreement had been announced as complete.

Contracted annualized recurring revenue on live compute was $21.6 million as of September 30 and $21.7 million as of the call. Moreland said the figure measures fixed contractual fees on capacity already delivered, accepted and generating revenue; it excludes contracted capacity that is not yet live and is not a forecast.

During the quarter, 128 NVIDIA Blackwell GPUs went live at the Mid-Atlantic data center, completing delivery of a previously announced multi-year cluster. Moreland said the partial-quarter contribution from that capacity helped explain why third-quarter revenue was below one-quarter of the roughly $22 million live contracted ARR figure shared in August.

Token Factory Launch

Corvex launched its Token Factory inference service on September 30. Co-Founder and Co-CEO Seth Demsey said customers can use hosted open-weight models through an API and pay for the tokens they consume, rather than manage GPU clusters. Standard endpoints retain neither prompts nor responses by default, he said.

Demsey said Corvex is not yet commenting on Token Factory revenue but expects a meaningful contribution to begin in 2027. The company plans to focus on partners and distribution channels before direct enterprise sales.

Crystal said Corvex has reserved some existing GPUs for the service and secured third-party capacity on an asset-light basis. Larger new clusters are generally intended for long-term, take-or-pay customer contracts, with any allocation to Token Factory expected to represent a minority of those clusters.

Cash, Financing and Controls

Corvex ended the quarter with $42 million in cash and equivalents, up from $21.7 million at the end of June. The increase reflected approximately $31 million in net private-placement proceeds and $6.9 million in net equipment-financing proceeds, partly offset by capital expenditures and operating cash use.

Cash used in operating activities was $7 million, while capital expenditures totaled $9.8 million. Moreland said the $6.9 million equipment financing was held at the project level, secured by equipment and a customer contract, and non-recourse to Corvex Inc. In response to an analyst’s question, he said the USD.AI facility carried a 10% interest rate.

Moreland said Corvex had not used the at-the-market equity facility announced in October. The company intends to use it opportunistically, primarily for the equity portion of specific deployments, rather than general operating needs.

Moreland also said a previously disclosed material weakness in internal controls remained unremediated. Corvex completed risk assessment and scoping in the third quarter and expects to begin testing control effectiveness in the first half of 2027.

Crystal acknowledged that revenue remains concentrated among a small number of customers. He said near-term priorities include completing offtake agreements, bringing the two expansions to ready-for-service status and growing Token Factory demand.

About Corvex (NASDAQ:MOVE)

Movano Inc. engages in developing a platform to deliver healthcare solutions at the intersection of medical and consumer devices. The company is involved in the development of Evie Ring, which is a wearable designed specifically for women that combines health and wellness metrics comprises resting heart rate, heart rate variability (HRV), blood oxygen saturation (SpO2), respiration rate, skin temperature variability, period and ovulation tracking, and menstrual symptom tracking, as well as activity profile, including steps, active minutes and calories burned, sleep stages and duration, and mood tracking.

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