Software for digital assets helped lift Hyperscale Data’s gross profit 44%

Hyperscale Data Highlights Blockchain Software Revenue Growth; Second Quarter Other Revenue, Consisting Largely of Blockchain-Related Revenue, Increased 647%

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Hyperscale Data (NYSE American: GPUS) reported sharp growth in blockchain-related activity for the three and six months ended June 30, 2026. Revenue, Other (“Other Revenue”), largely driven by blockchain initiatives, rose about 647% to roughly $3.4 million in Q2 2026 from approximately $450,000 a year earlier, and increased 219% to about $4.1 million for the first half, compared with $1.3 million in 2025.

Higher-margin blockchain-related revenue contributed to a 44% increase in Q2 gross profit to $8.8 million and improved gross margin to 25%. Consolidated revenue grew 35% in Q2 to $34.8 million and 55% in the first half to $78.9 million, while first-half gross profit rose 109% to $23.9 million and gross margin expanded to 30%. Research and development expenses increased to about $4.3 million in Q2 and $9.1 million in the first half, reflecting greater investment in AI and blockchain. The Ault Blockchain Mainnet launched in March 2026, and the company outlined multiple planned products and confirmed it currently expects the divestiture of Ault Capital Group in 2027 via exchange of Series F Preferred Stock.

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Positive

• Other Revenue up 647% YoY in Q2 2026 to about $3.4 million, primarily from blockchain initiatives
• First-half 2026 Other Revenue up 219% YoY to approximately $4.1 million
• Q2 2026 consolidated revenue up 35% YoY to $34.8 million
• First-half 2026 revenue up 55% YoY to $78.9 million
• Q2 2026 gross profit up 44% YoY to $8.8 million, with margin improving to 25%
• First-half 2026 gross profit up 109% YoY to $23.9 million, with margin reaching 30%
• Ault Blockchain Mainnet launched in March 2026, establishing infrastructure for future blockchain products

Negative

• Research and development expenses increased to about $4.3 million in Q2 2026, and $9.1 million in the first half, reflecting higher spending on AI and blockchain initiatives

Blockchain growth is reported within a broader revenue line, while most planned products remain unlaunched and conditional.

The reported 647%
second-quarter and 219%
first-half increases apply to total Other Revenue, not a separately reported blockchain revenue line; blockchain initiatives were the primary driver.

The mainnet launched in March 2026
, but most ecosystem products have not been fully launched or commercialized, and future revenue remains conditional on technical completion, market adoption, liquidity, and legal and regulatory review.

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Insider records showed Net Buying, including 374,741 shares bought and 1,000 sold over 90 days. That context supports monitoring conversion of blockchain initiatives into separately reported revenue, alongside resale-registration risk.

Q2 Other Revenue$3.4 millionQ2 2026, up 647% from approximately $450,000
First-Half Other Revenue$4.1 millionFirst six months of 2026, up 219% from approximately $1.3 million
Q2 Gross Profit$8.8 millionQ2 2026, up 44% from $6.1 million
Q2 Gross Margin25%Q2 2026, compared with 24% in the prior-year period
Q2 Consolidated Revenue$34.8 millionQ2 2026, up 35% from $25.9 million
First-Half Revenue$78.9 millionFirst half of 2026, up 55% from $50.9 million
First-Half Gross Profit$23.9 millionFirst half of 2026, up 109% from $11.4 million
First-Half Gross Margin30%First half of 2026, compared with 22% in the prior-year period

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

All five recent listed events were followed by negative 24-hour price reactions.

mainnettechnical
“The Ault Blockchain Mainnet launched in March 2026.”
The mainnet is the live, operational blockchain where real tokens, transactions, and smart contracts run and have actual economic value. Think of it as the public road where vehicles carry customers and goods rather than a private test track; for investors, a project launching or migrating to mainnet signals higher maturity, real usage, and exposure to operational risks, token supply changes, and network security that can affect value.
decentralized autonomous organizationtechnical
“The Ault decentralized autonomous organization (“Ault DAO”)”
A decentralized autonomous organization (DAO) is a collective run by code and token-holder voting on a blockchain rather than by a traditional central management team. Rules and actions are encoded in smart contracts that automatically execute decisions approved by members, like a digital co-op where ownership and governance are split among participants. It matters to investors because governance structure, legal status, token rights and operational transparency affect control, risk exposure and the economic value of any tokens or claims tied to the DAO.
tokenizationfinancial
“Tokenization of real-world assets, including commodities and precious metals”
Tokenization is the process of converting real-world assets or rights into digital tokens stored on a computer network. This allows assets, such as property or investments, to be divided into smaller parts, making them easier to buy, sell, or transfer electronically. For investors, tokenization can increase access to a wider range of investments and make transactions faster and more efficient.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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High Margin Blockchain-Related Revenue Contributed to 44%
Increase in Quarterly Gross Profit; First-Half Revenue Increased 55%
and Gross Profits Increased 109%

LAS VEGAS, Sept. 1, 2026 /PRNewswire/ — Hyperscale Data, Inc. (NYSE American: GPUS), an artificial intelligence (“AI“) data center company anchored by Bitcoin (“Hyperscale Data” or the “Company“), today highlighted the growth and early commercialization of its blockchain software initiatives during the three and six months ended June 30, 2026.

Blockchain Revenue Highlights:

• The Company’s Revenue, Other (“Other Revenue“) increased approximately$2.9 million
  , or 647%
  , to approximately$3.4 million
  for the second quarter of 2026, compared with approximately$450,000
  for the same period in 2025. The increase was primarily attributable to revenue generated by the Company’s blockchain initiatives.
• Other Revenue increased approximately$2.8 million
  , or 219%
  , to approximately$4.1 million
  for the first six months of 2026, compared with approximately$1.3 million
  for the same period in 2025. The increase was primarily attributable to revenue generated by the Company’s blockchain initiatives.
• Higher-margin blockchain-related revenue contributed to the Company’s 44%
  increase in second-quarter gross profit, from$6.1 million
  to$8.8 million
  , which also resulted in an improvement in quarterly gross margin to 25%
  from 24%
  .
• Research and development expenses increased to approximately $4.3 million
  during the second quarter and $9.1 million
  during the first half of 2026, reflecting increased investment in the Company’s AI and blockchain initiatives.

Blockchain-related revenue is presently included within the Company’s Other Revenue category and is not reported as a separate financial-statement line item. Accordingly, the 647%
and 219%
increases apply to total Other Revenue, with blockchain initiatives as the primary driver of those increases.

Strong Consolidated Revenue and Gross Profit Growth

The growth of the Company’s blockchain initiatives occurred alongside significant consolidated revenue and gross-profit growth:

• Second-quarter 2026 consolidated revenue increased 35%
  , to $34.8 million
  , compared with $25.9 million
  in the prior-year period;
• First-half 2026 consolidated revenue increased 55%
  , to $78.9 million
  , compared with $50.9 million
  in the prior-year period;
• Second-quarter 2026 gross profit increased 44%
  , to $8.8 million
  , compared with $6.1 million
  in the prior-year period;
• First-half 2026 gross profit increased 109%
  , to $23.9 million
  , compared with $11.4 million
  in the prior-year period; and
• First-half 2026 gross margin expanded to 30%
  , compared with 22%
  in the prior-year period.

Milton “Todd” Ault III, Executive Chairman of Hyperscale Data, stated, “Our second-quarter results demonstrate the early success we have had commercializing our blockchain initiatives, with Other Revenue increasing 647%
, primarily due to these initiatives. We are particularly encouraged that higher-margin blockchain-related revenue contributed to the 44%
increase in quarterly gross profit. While we are still early in the development of the Ault Blockchain ecosystem, these results reinforce our conviction regarding its long-term potential.

“Most of the products we are developing for the Ault Blockchain ecosystem have not yet been fully launched or commercialized. As we introduce activities at our Ault Markets, Inc. (“Ault Markets“) subsidiary as well as additional products, we expect to create opportunities to generate software sales, transaction and tokenization fees and other recurring revenue. Our long-term objective is to build an integrated capital-markets ecosystem where users can trade, tokenize, lend against, collateralize and deploy digital and real-world assets. We believe the opportunity is substantial and that blockchain-related revenue has the potential to exceed the combined revenue generated by our other operating businesses.”

Upcoming Ault Blockchain Products

The Company and its subsidiaries are developing additional products intended to operate on or interact with the Ault Blockchain protocol, including:

• Ault Markets and the Ault decentralized exchange;
• Spot trading and other digital-asset trading functionality;
• Tokenization of real-world assets, including commodities and precious metals;
• Blockchain-based payment functionality, including Bitcoin Max (BMAX), which is designed to act as a utility and transaction mechanism within the broader Ault Blockchain ecosystem;
• Lending, collateral and digital-asset vault applications; and
• Additional decentralized applications and financial products designed for the Ault Blockchain ecosystem.

These planned products and services could create revenue opportunities from software and infrastructure sales, transaction fees, tokenization and service fees, financial applications and other protocol-related economic activity. The development and commercialization of these products remain subject to successful technical completion, market adoption, liquidity, legal and regulatory review and other risks.

The Ault Blockchain Mainnet launched in March 2026. The ecosystem is organized around three principal components:

• The Ault Blockchain network, which processes transactions and hosts decentralized applications;
• A node license program, through which participants acquire network infrastructure rights and may earn distributed tokens; and
• The Ault decentralized autonomous organization (“Ault DAO“), the on-chain governance body through which licensed participants participate in the network’s direction.

Ault Markets wholly owns Ault DAO LLC, the legal and corporate entity of record for the Ault DAO. The Ault DAO, which is comprised of licensed node holders, governs the Ault Blockchain network.

For more information on Hyperscale Data and its subsidiaries, Hyperscale Data recommends that stockholders, investors and any other interested parties read Hyperscale Data’s public filings and press releases available under the Investor Relations section at hyperscaledata.com or available at www.sec.gov.

About Hyperscale Data, Inc.

Through its wholly owned subsidiary Sentinum, Inc., Hyperscale Data owns and operates a data center at which it mines digital assets and offers colocation and hosting services for the emerging AI ecosystems and other industries. Hyperscale Data’s other wholly owned subsidiary, Ault Capital Group, Inc. (“ACG“), is a hybrid private equity firm and operating company that acquires, finances, builds and actively manages businesses across financial services, digital assets, industrial services, hospitality, defense technologies and other sectors.

Hyperscale Data currently expects the divestiture of ACG (the “Divestiture“) to occur in 2027. Upon the occurrence of the Divestiture, the Company would be an owner and operator of data centers to support high-performance computing services, as well as a holder of the digital assets. Until the Divestiture occurs, the Company will continue to provide, through ACG and its wholly and majority-owned subsidiaries and strategic investments, mission-critical products that support a diverse range of industries, including an AI software platform, equipment rental services, defense/aerospace, industrial, automotive and hotel operations. In addition, ACG is actively engaged in private credit and structured finance through Ault Lending, LLC, a licensed lending subsidiary. Hyperscale Data’s headquarters are located at 11411 Southern Highlands Parkway, Suite 190, Las Vegas, NV 89141.

On December 23, 2024, the Company issued one million (1,000,000) shares of a newly designated Series F Exchangeable Preferred Stock (the “Series F Preferred Stock“) to all common stockholders and holders of the Series C Preferred Stock on an as-converted basis. The Divestiture will occur through the voluntary exchange of the Series F Preferred Stock for shares of Class A Common Stock and Class B Common Stock of ACG (collectively, the “ACG Shares“). The Company reminds its stockholders that only those holders of the Series F Preferred Stock who agree to surrender such shares, and do not properly withdraw such surrender, in the exchange offer through which the Divestiture will occur, will be entitled to receive the ACG Shares and consequently be shareholders of ACG upon the occurrence of the Divestiture.

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “believes,” “plans,” “anticipates,” “projects,” “estimates,” “expects,” “intends,” “strategy,” “future,” “opportunity,” “may,” “will,” “should,” “could,” “potential,” or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties.

Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect the Company’s business and financial results are included in the Company’s filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company’s Forms 10-K, 10-Q and 8-K. All filings are available at www.sec.gov and on the Company’s website at hyperscaledata.com.

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What were Hyperscale Data (GPUS) consolidated revenue and gross profit for Q2 and first half 2026?

Hyperscale Data reported Q2 2026 consolidated revenue of $34.8 million, up 35% year over year, and gross profit of $8.8 million, up 44%. For the first half of 2026, revenue was $78.9 million and gross profit $23.9 million, increases of 55% and 109%, respectively.

How is Hyperscale Data (GPUS) investing in AI and blockchain research in 2026?

Hyperscale Data increased research and development expenses to about $4.3 million in Q2 2026 and $9.1 million in the first half. According to the company, this higher spending reflects expanded investment in AI and blockchain initiatives that support its data center, digital asset, and Ault Blockchain ecosystem strategy.

What is the Ault Blockchain ecosystem launched by Hyperscale Data (GPUS)?

The Ault Blockchain Mainnet launched in March 2026 as a platform for decentralized applications and financial products. According to Hyperscale Data, the ecosystem includes the Ault Blockchain network, a node license program, and the Ault DAO governance body comprised of licensed node holders overseeing network direction.

Which upcoming Ault Blockchain products is Hyperscale Data (GPUS) developing?

Hyperscale Data is developing Ault Markets and a decentralized exchange, spot and digital-asset trading, real-world asset tokenization, blockchain-based payments including Bitcoin Max, lending and collateral applications, and additional decentralized financial products. According to the company, these offerings could create software, transaction, tokenization, and service fee revenue opportunities, subject to multiple risks.

How did Hyperscale Data’s gross margins change in the first half of 2026?

Hyperscale Data’s first-half 2026 gross margin increased to 30%, compared with 22% in the prior-year period. According to the company, higher-margin blockchain-related revenue contributed to improved profitability, including Q2 2026 gross margin of 25%, up from 24% a year earlier.

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