Boost Run (NASDAQ:BRUN) reported second-quarter revenue of $31.1 million, up approximately 270% from a year earlier and about 260% sequentially, as the company expanded GPU infrastructure capacity to support AI inference and training customers.
Founder and CEO Andrew Karos said the company signed approximately $1 billion in total contract value, or TCV, during the quarter. Long-term contracted revenue reached $1.9 billion, with an average contract duration of about three years and average customer prepayments of 22%.
Capacity Expansion and Hardware Procurement
Boost Run said it operates six data center locations and expects three additional locations to come online over the next six months. Through expanded partnerships, the company said it has access to 253 megawatts of capacity.
Karos said the company expects to continue deploying capacity through the remainder of fiscal 2026 and into the first quarter of 2027, bringing its $1.9 billion of contracted TCV into production. The company expects to exit fiscal 2026 with approximately $400 million in annual recurring revenue, reaffirming a target it had previously outlined.
The company’s $1.44 billion purchase agreement with Dell is “essentially fully committed and allocated,” Karos said. Boost Run is also pursuing a strategic procurement of an additional $4 billion to $5 billion of compute hardware from multiple original equipment manufacturers. Karos said the core OEM relationships would remain Dell and Lenovo, while additional equipment could include networking components such as switches and transceivers.
Boost Run uses a multi-site deployment approach, favoring four 25-megawatt locations over a single 100-megawatt site. Karos said smaller sites can be brought online in parallel using standardized designs, allowing the company to deploy equivalent capacity more quickly and with less risk.
NVIDIA Partnership and Operating Model
Karos highlighted Boost Run’s status as an NVIDIA cloud partner and NVIDIA Exemplar Cloud provider. He said the company adheres to NVIDIA reference architectures across its sites and works with NVIDIA on standardized capacity designs.
During the question-and-answer session, Karos said Exemplar status requires rigorous testing of network and compute performance, including a 95% performance guarantee for the network and technology stack. He said Boost Run does not place a cluster into production until it has passed NVIDIA’s architecture review process.
The company said its business model rests on four areas: a diversified customer portfolio, partnerships with colocation providers rather than ownership of data centers, forward hardware procurement with OEM partners and NVIDIA, and financing relationships intended to support responsible scaling.
Boost Run does not own its data centers, Karos said, allowing it to avoid the real estate costs and multiyear development timelines associated with building facilities. He said the strategy keeps capital directed toward revenue-generating hardware.
Adjusted selling, general and administrative expense was approximately $6.4 million in the quarter, representing about 20% of revenue, according to Karos. More than 12% of revenue currently comes from short-term on-demand contracts through the company’s platform, which he said generate higher pricing and margins than longer-duration arrangements.
Loss Includes Public-Listing Charges
Chief Financial Officer Erik Guckel said Boost Run’s GAAP operating costs and expenses totaled $44 million in the second quarter, resulting in a $12.9 million operating loss. Depreciation and amortization rose to $18.1 million as the company added finance leases for GPU servers and expanded its operating footprint.
The company reported a GAAP net loss of $75 million. Guckel said the result was heavily affected by $64.4 million in one-time and non-cash items related to Boost Run’s transition to a public company.
- A $55.7 million one-time income tax expense related to the company’s conversion from a non-taxable partnership to a taxable C corporation.
- $7.3 million in non-cash stock-based compensation for equity awards that vested upon the transaction closing.
- A $1.4 million loss on early debt extinguishment after the company used transaction proceeds to repay short-term bridge loans.
Guckel said Boost Run expects to achieve a sustainable net cash flow margin of 15% to 20%, driven by project cash flows and customer prepayments. As of June 30, the company held $128.4 million in customer deposits, including $34.9 million classified as current and $93.5 million classified as long term.
Liquidity and Financing Plans
Boost Run ended the quarter with $120.2 million of unrestricted cash and $13 million of restricted cash supporting a data center letter of credit. The company also received $114.1 million in net proceeds from its business combination and $43.4 million from the exercise of 4,112,176 public warrants.
As of Aug. 12, Guckel said unrestricted cash stood at $134.7 million. He said the company had realized $74.5 million in additional warrant-exercise proceeds as of that date, with the exercise period scheduled to expire Aug. 20. About 4.9 million to 5 million warrants remained outstanding, and Guckel said unexercised warrants would be subject to redemption for one cent.
Management said it expects to hand over four projects by year-end and is continuing to develop financing structures beyond the equipment-financing approach used to date. Karos said customer prepayments, operating cash flow, balance-sheet equity and financing partners are key components of the company’s approach to funding capacity growth.
About Boost Run (NASDAQ:BRUN)
Boost Run is a technology company in the Internet Services & Infrastructure industry.
