Corvex (MOVE) Q3 2026 earnings review
Corvex grows AI cloud sales, but new sites lack contracts
Corvex, which rents out graphics chips and software for artificial intelligence, grew sales in its first clean quarter after exiting healthcare, but expansion costs and stock grants kept losses high. Third-quarter revenue rose 31% from the previous quarter to $5.0 million, supported by 1.5 megawatts of live data-centre power generating $21.7 million in annualised contracts. Co-chief executive Jay Crystal kept the target to have 8 megawatts ready for service in the fourth quarter.
| Revenue | $5.0M +31% from last quarter |
|---|---|
| Contracted annualised revenue (live) | $21.7M across 1.5 MW of live capacity |
| EBITDA excluding one-offs | -$3.2M -65% of revenue |
| Year-end capacity plan | Unchanged ~8 MW ready for service in Q4 |
⚖️ Verdict: ⚪ Neutral
The story is unchanged because Corvex secured the power and funding for its next sites, but still has not signed customer contracts for them. Management raised $33 million in equity and $7.5 million in equipment debt, and launched its Token Factory software on time. One caution: the company is still working to finish customer deals for 6.1 megawatts of fourth-quarter capacity while burning $7 million of operating cash a quarter.
The question now is whether Corvex locks in take-or-pay customer contracts for its new Mid-Atlantic and Midwest sites before they go live. If customers sign on at current pricing, contracted annualised revenue could quadruple; if deals slip, the company will pay for idle data centres out of its cash reserve. Fourth-quarter contracted revenue will tell.
🐂 Bull Case
Live Capacity Delivers $21.7 Million in Annualized Revenue
Corvex rents out specialised graphics chips (GPUs) for artificial intelligence work through its AI Factory business. In its first quarter after shedding the old Movano medical-device unit, revenue rose 31% from the second quarter to $5.0 million. By our math, sales also grew 36% from the $3.65 million the AI business generated in the first quarter on a combined basis.
All current revenue comes from take-or-pay contracts, where customers reserve computing power and pay a fixed fee regardless of how much they use. The 1.5 megawatts of live data-centre power now generates $21.7 million in contracted annualised recurring revenue (ARR), the yearly value of active contracts. By our math, each live megawatt brings in $14.5 million a year, and gross profit before depreciation and stock grants reached 65% of sales.
What to watch: fourth-quarter revenue against the $5.4 million quarterly pace implied by current live contracts. A figure above $5.4 million will show that new data-centre capacity began billing customers before year-end.
Corvex Secured 8 Megawatts and Project Financing
Building AI data centres requires both power supply and capital to buy servers. Co-chief executive Jay Crystal said, "We have now secured all of the approximately 8 MW of critical IT capacity in the plan we set out in August." That plan doubles capacity at its Mid-Atlantic 1 site and opens a new Midwest-1 facility, where the group also holds a right of first refusal on another 12.5 megawatts in 2027.
To pay for the rollout, the AI cloud provider raised $33 million in gross proceeds from a September stock sale at $7.75 per share. A subsidiary also borrowed $7.5 million from lender USD.AI to buy Nvidia Blackwell servers for Mid-Atlantic 1, using debt that is backed by project assets rather than the parent company.
What to watch: new equipment loans for the 4.5-megawatt Midwest-1 site. Securing non-recourse debt for that facility will show lenders are willing to fund the rest of the 8-megawatt plan without further stock sales.
Token Factory Launched on Schedule With Allowed Patents
Management wants Corvex to be more than a hardware landlord by selling software that runs AI models efficiently. Co-chief executive Seth Demsey said the goal is "to get more useful work out of every GPU and every watt, on infrastructure customers can trust with their most sensitive data." On September 30, the Virginia group opened its Corvex Token Factory software to the public on schedule.
Token Factory lets developers run open-weight AI models through an interface "with zero data retention by default", so customer inputs are never stored. Alongside the launch, the US Patent Office allowed two patents covering the platform's technology, leaving 10 applications pending. Because the release notes that all revenue still comes from take-or-pay hardware contracts, the software is not yet bringing in material sales.
What to watch: any disclosure of paying usage or standalone revenue from Token Factory in the full-year report. Material usage revenue would support Demsey's claim that software differentiates the platform from bare-metal rivals.
🐻 Bear Case
New Data Center Capacity Still Lacks Signed Customer Contracts
Crystal emphasised that management is building the business "one underwritten project at a time" and only finances deployments alongside customers. Yet the capacity expansion is moving ahead of signed contracts. While 1.5 megawatts are live today, Crystal said the team is still "working to complete offtake for a 1.6 MW NVIDIA Blackwell cluster planned for Mid-Atlantic 1 and for 4.5 MW at Midwest-1".
- Live and contracted today: 1.5 megawatts generating $21.7 million in annualised revenue
- Mid-Atlantic 1 expansion: 1.6 megawatts of Nvidia Blackwell chips, customer contract pending
- Midwest-1 facility: 4.5 megawatts planned for fourth-quarter service, customer contract pending
- Total uncontracted expansion: 6.1 megawatts out of the 6.5 megawatts of new capacity
This timing gap matters because both expansions are scheduled to be ready for service in the fourth quarter, and November is already mid-way through that period. If Corvex brings 6.5 megawatts online before customers sign take-or-pay agreements, it will carry the data-centre lease and depreciation costs without matching revenue.
What to watch: contracted annualised revenue on live compute in the fourth-quarter release. Signing the full 6.1 megawatts at current pricing rates would lift contracted annualised revenue by more than $80 million by our math.
Overhead Costs Keep Cash Burn High as Revenue Grows
Higher revenue did not narrow Corvex's operating losses in the third quarter. Loss from operations reached $17.4 million, and the EBITDA loss excluding one-offs was $3.2 million, or 65% of sales. By our math, that is slightly wider than the $3.17 million loss in the second quarter and more than triple the $933,000 combined loss in the first quarter.
General and administrative overhead drove the deficit, reaching $14.8 million. Even after stripping out $9.3 million of stock grants, cash administrative overhead was $5.6 million by our math, or 112% of total revenue. As a result, operations burned $7.0 million in cash during the quarter, consuming more than a fifth of the net proceeds from September's stock placement.
What to watch: EBITDA excluding one-offs in the fourth quarter as the new data centres open. The number will show whether revenue from new megawatts scales faster than corporate overhead.
Stock Grants and Preferred Shares Swell the Share Count
Shareholders face heavy dilution from both employee stock awards and the March reverse merger structure. Stock-based compensation hit $11.3 million in the third quarter, equal to 227% of revenue, and $22.9 million over the first nine months. Prior filings noted $142 million of unrecognised merger stock awards scheduled to vest between 2026 and 2030.
At the same time, the capital structure still holds 21,800 shares of Series D preferred stock from the merger and private placement. Those preferred shares convert into 21.8 million common shares, which will expand the 39.1 million common share count by 56% to 60.9 million on an as-converted basis.
What to watch: quarterly stock-based compensation and any new equity raises needed to fund the 12.5-megawatt Midwest-1 expansion option in 2027. Additional share issuances will further dilute per-share economics.
👓 Other Themes
Healthcare Exit Completes the Reverse Merger Transition
Corvex went public in March 2026 by merging into health-wearables maker Movano, and transferred out the remaining medical-device assets on June 30. The third quarter is its first clean reporting period as a pure-play AI company, with zero revenue from connected devices. Because last year's figures reflect only Movano's old ring business, year-on-year comparisons in the financial tables carry no analytical meaning.
💲 Other KPIs
Unrestricted cash rose to $42.0 million (plus $0.7 million restricted) at September 30, up from $29.3 million at the end of the first quarter. A $31.0 million net equity raise and $7.4 million in net loan proceeds offset $16.6 million of nine-month operating cash burn and $16.0 million of equipment purchases.
Deferred revenue — cash collected in advance from customers for computing capacity not yet delivered — stood at $3.23 million across current ($1.89 million) and non-current ($1.34 million) balances. By our math, that is down 26% from $4.38 million at the end of the first quarter as Corvex recognised upfront prepayments into quarterly revenue.
Total borrowings reached $15.4 million by our math, comprising $8.5 million in current and long-term equipment finance leases and $6.9 million in loans payable. Debt increased from $14.9 million in the first quarter after the company extinguished a $4.5 million bridge loan and drew $7.5 million from the new USD.AI server facility.
🔮 Guidance
Unchanged. Management kept its August plan to bring total critical IT capacity to about 8 megawatts ready for service in the fourth quarter, up more than fivefold from 1.5 megawatts live today. By our math, that leaves 6.5 megawatts to commission before year-end across the Mid-Atlantic 1 expansion and Midwest-1.
❓ Key Questions
When will customers sign contracts for the 6.1 megawatts?
Corvex expects the 1.6-megawatt Mid-Atlantic 1 expansion and 4.5-megawatt Midwest-1 site to be ready for service in the fourth quarter, but neither has a completed customer agreement as of mid-November.
What are the interest rate and terms on USD.AI debt?
The company borrowed $7.5 million from USD.AI to fund Blackwell servers and already shows $1.87 million as due within 12 months. Investors need the interest rate and payback schedule to judge project cash returns.
How concentrated is the $21.7 million of contracted revenue?
In 2025, three customers accounted for 67% of Corvex OpCo's revenue. Management did not disclose how many customers currently occupy the 1.5 megawatts of live capacity.
Why did cash administrative overhead exceed $5.5 million?
General and administrative expense excluding stock grants was $5.6 million in the third quarter, more than total revenue. Management did not explain how much of that cost is recurring versus post-merger cleanup.