Digi Power X (DGXX) Financials

Digi Power X (NASDAQ: DGXX) showed a sharp revenue decline in Q1 2026, but also a much stronger cash position and a major balance sheet expansion compared with a year ago. The quarter was still loss-making, and operating cash flow remained deeply negative, but the company ended the period with significantly more cash on hand than in the prior-year quarter.

• Cash and equivalents jumped to $57.8 million at March 31, 2026, up from a much smaller cash position implied by the prior-year period, giving the company more liquidity to fund operations and capital spending.
• Total assets rose to $126.9 million, supported by a large cash balance and a sizable property, plant and equipment base.
• Equity remained very strong at $118.9 million, with liabilities of only $8.0 million, indicating a relatively low debt burden.
• The company raised $1.9 million through common equity issuance in Q1 2026, which helped offset cash burn.
• No debt repayment and no dividends were recorded in Q1 2026, which preserved cash during a difficult operating period.
• Revenue fell to $6.8 million in Q1 2026 from $9.3 million in Q1 2025, showing weaker top-line performance year over year.
• Gross profit remained negative at about $0.8 million loss, meaning cost of revenue still exceeded revenue.
• Operating expenses stayed elevated, with SG&A of $4.3 million and depreciation of $1.45 million contributing to a $5.1 million operating loss.
• Weighted average shares increased sharply to about 69.6 million from 35.0 million a year earlier, which points to meaningful dilution for existing shareholders.
• Net loss widened to $4.7 million in Q1 2026 from $1.6 million in Q1 2025.
• Operating cash flow was deeply negative at $6.4 million, compared with a $10.1 million outflow in Q1 2025, so the business is still consuming cash from operations.
• Investing cash outflows were heavy at $16.2 million, driven mainly by $15.2 million of property, plant and equipment purchases and another $1.0 million of investment purchases.
• Net cash fell by $20.7 million in the quarter, despite the equity raise, because operating losses and capital spending outweighed financing inflows.

Bottom line: DGXX entered Q1 2026 with a much stronger cash cushion and a lightly levered balance sheet, which is encouraging. However, the core business still appears under pressure: revenue declined, losses widened, operating cash flow remained negative, and the company continued to spend aggressively on assets. For retail investors, the key question is whether those capital investments eventually translate into stronger revenue and improved profitability.