The massive GAAP net loss is largely non-cash and tied to share price appreciation, but the company is still pre-revenue at scale with only $1.9M in quarterly revenue against a $2.0B market cap. Monitor the pace of converting the $8.8B TCV into recognized revenue over the next 2-4 quarters, as management guides for a material ramp starting in Q3 2026.
Price Chart
Executive Summary
Sharon AI reported Q2 2026 results with revenue of $1.9M (up 412% YoY) and a net loss of $(430.4M), primarily driven by a $400.4M non-cash fair value loss on convertible notes. The company highlighted a $4.9B strategic compute collaboration with NVIDIA, an $8.8B total contract value, and a strengthened balance sheet with $1.9B in cash, but the massive GAAP net loss and early-stage revenue base temper the headline growth story.
Key Facts
- Revenue of $1.9M in Q2 2026, up 412% from $377K in Q2 2025.
- Net loss of $(430.4M) in Q2 2026, including a $400.4M non-cash fair value loss on convertible notes.
- Adjusted EBITDA of $0.6M, compared to $(1.7M) in Q2 2025.
- Cash and cash equivalents of $1.9B at June 30, 2026.
- Total Contract Value (TCV) of $8.8B as of August 6, 2026.
- Announced a $4.9B, six-year strategic compute collaboration with NVIDIA for up to 40,000 GB300 GPUs.
- Secured AI Factory capacity increased by 80MW to 212MW.
- Subsequent to quarter end, announced a $1.32B, five-year take-or-pay contract with a global AI lab and a $373M contract with a global AI platform.
Financial Impact
Revenue grew 412% YoY to $1.9M, but net loss widened to $(430.4M) from $(2.6M) due to a $400.4M non-cash fair value loss on convertible notes. Adjusted EBITDA turned positive at $0.6M.
Risk Factors
- Massive GAAP net loss of $(430.4M) driven by non-cash fair value adjustments on convertible notes.
- Revenue base remains extremely small ($1.9M) relative to market cap ($2.0B) and total contract value ($8.8B).
- Execution risk in deploying contracted capacity and converting TCV into recognized revenue.
- Dilution risk from significant equity and convertible note issuances (shares outstanding increased from 11.8M to 35.7M in six months).
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493152-26-036254 |
| Document: form8-k.htm | 0001493152-26-036254 |
| Document: 0001493152-26-036254-index-headers.html | 0001493152-26-036254 |
| Document: 0001493152-26-036254-index.html | 0001493152-26-036254 |
| Document: 0001493152-26-036254.txt | 0001493152-26-036254 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 1, 2026 25d ago | 8-K | $50.81 $37.93 | ▼ −25.35% | ▼ −26.51% | $25.72 (−49.39%) |
Sep 24, 2026 4w ago | 8-K | $54.68 $50.81 | ▼ −7.08% | ▼ −6.86% | $25.72 (−52.97%) |
Sep 23, 2026 4w ago | 8-K | $57.73 $54.60 | ▼ −5.42% | ▼ −4.75% | $25.72 (−55.46%) |
Sep 23, 2026 4w ago | Press Release | $57.73 $54.60 | ▼ −5.42% | ▼ −4.75% | $25.72 (−55.46%) |
Sep 17, 2026 5w ago | SC 13D/A | $57.56 $54.68 | ▼ −5.00% | ▼ −6.27% | $25.72 (−55.32%) |
Sep 4, 2026 7w ago | 8-K | $55.94 $51.91 | ▼ −7.20% | ▼ −6.00% | $25.72 (−54.03%) |
Aug 28, 2026 8w ago | 8-K | $54.86 $58.12 | ▲ +5.94% | ▲ +6.08% | $25.72 (−53.13%) |
Aug 27, 2026 8w ago | 8-K | $52.37 $55.94 | ▲ +6.82% | ▲ +6.71% | $25.72 (−50.90%) |
Aug 26, 2026 8w ago | 8-K | $59.59 $54.29 | ▼ −8.89% | ▼ −8.77% | $25.72 (−56.85%) |
Aug 24, 2026 9w ago | EFFECT | $58.38 $54.86 | ▲ +6.03% | ▲ +6.50% | $25.72 (+55.95%) |
US Market Status
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