What Boost Run (BRUN) Said on Its Q3 Earnings Call

Key Points

• Revenue surged to $39.9 million from $6.7 million a year earlier, while Boost Run reported a $14.1 million net loss. Management said existing contracts could generate about $750 million in ARR once fully deployed.
• A Georgia deployment worth about $13 million in monthly recurring revenue was delayed from Q3 2026 to Q1 2027, weighing on the year-end outlook; without project shifts, the company said it could have reached about $435 million in ARR by year-end 2026.
• Boost Run reported $65.6 million in Q3 operating cash flow, but cautioned that working-capital changes drove most of it and noted $109.8 million in GPU finance-lease principal payments. It also plans to expand to nine active U.S. data center sites over the next six months.

Boost Run NASDAQ: BRUN reported a sharp rise in third-quarter revenue as new GPU clusters came online, but project delays pushed a major deployment into 2027 and affected the company’s year-end recurring revenue outlook.

Revenue rose to $39.9 million from $6.7 million a year earlier and $31.1 million in the second quarter. The company reported a net loss of $14.1 million, or approximately $0.17 per share, compared with a loss of $17.2 million, or $0.58 per share, a year earlier. The latest quarter included a $9.7 million income tax benefit.

Founder and CEO Andrew Karos said Boost Run’s total contract value exceeded $2.7 billion and that the company expected approximately 26% of that amount to be live by the end of November 2026. Asked about the revenue potential of the existing contracts when fully deployed, Karos estimated an annual recurring revenue, or ARR, figure of approximately $750 million, excluding other business.

Project Delays Shift Revenue

Karos said a Georgia project representing approximately $13 million in monthly recurring revenue had shifted from the third quarter of 2026 to the first quarter of 2027. He said work was paused after the data center operator decided to comply with city requests following permitting, but that the issue had been resolved.

The company expects to begin handing off GPUs for the Georgia project in the fourth quarter. Karos said the scale of the deployment, involving more than 7,000 GPUs, meant the handoff and transition to full production would take time.

Karos also said two projects recently handed off would add roughly $10 million in monthly recurring revenue. He cited rain in Illinois as a factor affecting the timing of those deployments. In prepared remarks, he put the projects’ combined contract value at approximately $455 million and estimated their monthly recurring revenue at $9.5 million.

Without project shifts, Boost Run would have achieved approximately $435 million in ARR by the end of 2026, Chief Financial Officer Erik Guckel said. The company expects fourth-quarter revenue to grow significantly as recently deployed projects reach full billing, he added.

Cash Flow and Project Financing

Boost Run generated $65.6 million in operating cash flow during the third quarter. Guckel cautioned against simply annualizing that figure because working capital changes drove most of the quarterly total, including a $54.4 million net increase in customer deposits and a $39.4 million increase in payables.

Operating cash flow also excludes the principal portion of GPU finance lease payments, which are reported as financing activities. Those payments totaled $109.8 million in the third quarter, and Guckel said the company considers them alongside operating cash flow.

Boost Run ended September with $157 million in unrestricted cash and $13 million in restricted cash. Customer deposits on the balance sheet totaled $182.8 million, up from $128.4 million at the end of June. The company records deposits as liabilities and recognizes the associated revenue over the contract term.

Karos said Boost Run had secured approximately $600 million in non-dilutive project financing year to date and had approximately $482 million in customer prepayments due on upcoming deployments. The company expects to fund those projects primarily through prepayments and project-level financing, with debt structured to be repaid before the underlying customer contracts expire.

Boost Run completed its warrant redemption in August. Approximately 11.4 million warrants were exercised for cash during the first nine months of the year, generating $131.5 million in proceeds, Guckel said. The company had no warrants outstanding and no parent-level bank or bond debt at quarter-end, he added.

Capacity Expansion

Boost Run plans to expand from six active U.S. data center sites to nine over the next six months. It expects deployed colocation power capacity to reach approximately 40 megawatts by the end of 2026 and said it had secured 253 megawatts of total accessible capacity to support growth in 2027 and 2028.

Karos said the company’s $1.44 billion hardware purchase agreement with Dell was fully committed against customer demand. Of the $4 billion to $5 billion in strategic hardware procurement outlined for 2027, approximately $330 million in purchase orders had already been submitted and accepted by primary equipment partners, he said.

On-demand contracts account for more than 10% of revenue and command prices two to 2.5 times those of longer-term reservations, according to Karos. He said Boost Run expects that part of the business to grow, while noting the less predictable cash flows associated with short-term demand.

About Boost Run (NASDAQ:BRUN)

Boost Run, Inc. develops and provides cloud infrastructure for artificial intelligence (AI) and computing workloads. The company's platform delivers GPU computes, CPU nodes, managed Kubernetes orchestration, shared network storage, networking fabric, and hyperscaler interconnects. The company was founded in 2023 and is based in Northbrook, Illinois.

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