Mr. Michel Amar reports

DIGI POWER X REPORTS FIRST QUARTER 2026 FINANCIAL RESULTS

Digi Power X Inc. has released its financial and operating results for the first quarter ended March 31, 2026 (all amounts in U.S. dollars, unless otherwise indicated). The company's quarterly report on Form 10-Q, which includes unaudited consolidated financial statements and management discussion and analysis (MD&A) for the quarter ended March 31, 2026, has been filed and made accessible under the company's continuous disclosure profile on SEDAR+ and is also available on EDGAR.

First quarter 2026 financial highlights (three months ended March 31, 2026):

• Net loss of $4.7-million, compared with $1.6-million in Q1 2025, primarily reflecting prerevenue investment in AI (artificial intelligence) infrastructure capacity, phase 1 commissioning activity at Columbiana and growth in corporate head count supporting the AI build program;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $1.1-million, a $2.4-million year-over-year improvement from negative $1.3-million in Q1 2025;
• Working capital of $67.2-million, a $68-million year-over-year increase from negative $800,000 as at March 31, 2025;
• Cash and cash equivalents of $73-million at quarter-end, with zero long-term debt;
• Net fixed assets of $26.4-million, up 29 per cent year over year from March 31, 2025, reflecting capitalized investment at the Columbiana, Ala., facility;
• Revenue of $6.8-million, compared with $9.3-million in Q1 2025, reflecting the planned wind-down of legacy operations as the company transitions to AI compute and co-location revenue.

Operational and postquarter highlights:

• NeoCloudz GPU-as-a-service (graphics processing unit) is live: recognized first revenues in May, 2026, from its initial fleet of Nvidia B200 and B300 GPUs deployed at the Columbiana, Ala., facility;
• Signed a $1.1-billion, 10-year AI co-location agreement with a leading AI infrastructure company, securing long-term contracted revenue;
• Approximately $125-million in cash and cash equivalents and $15-million in digital assets as of the date of this release (fair market value of digital assets per Gemini Exchange);
• Approximately $45-million in year-to-date capital expenditures deployed toward GPU equipment and data centre buildout, principally at the Columbiana, Ala., facility;
• Uplist to Cboe Canada completed under the symbol DGX, complementing the Nasdaq listing under the symbol DGXX.

Management statement

"Q1 marks an inflection point for Digi Power X. Adjusted EBITDA turned positive, even as we deliberately ran down legacy revenue to make room for a much larger AI compute business, and our NeoCloudz GPU cloud is now revenue generating. The balance sheet is the strongest in the company's history -- approximately $125-million in cash, $15-million in digital assets, zero long-term debt and roughly $45-million of capital expenditure already deployed year to date at Columbiana -- and the company is in active discussions to secure debt financing to fund future data centre development to avoid shareholder dilution, providing us with the firepower needed to execute phase 1 and the operational platform that follows.

"We have successfully initiated our pivot to AI, and the results this quarter reflect the early returns on that transition," stated Michel Amar, chairman and chief executive officer of Digi Power X.

"Releasing our first Nvidia Blackwell GPU cluster with high-performance AI storage is a defining moment for Digi Power X as we transition from building AI infrastructure to powering real AI workloads at scale through NeoCloudz. With our Silicon Valley office opening in June, we are expanding into the centre of AI innovation to recruit top engineering talent to accelerate our expansion," stated Jagan Jeyapaul, chief technology officer of Digi Power X.

2027 outlook

For fiscal 2027, Digi Power X is targeting total revenue of approximately $250-million to $300-million across its three operating segments:

• AI co-location revenue from the co-location agreement is expected to contribute approximately $80-million to $100-million, reflecting a full year of phase 1 operations and a partial year of phase 2 following its targeted commissioning (40 megawatts), and the company is targeting an aggregate of 90 megawatts of AI co-location for fiscal 2027 (50 megawatts in addition to the co-location agreement) for aggregate co-location revenues of up to $200-million.
• GPU-as-a-service revenue through NeoCloudz is expected to scale over the course of the year to approximately 10 megawatts as additional GPU capacity is deployed and contracted (assuming similar utilization rates and dollars per kilowatt to the company's current contracts), with the company targeting a year-end annualized run rate of up to $100-million, noting that recognized segment revenue will depend on the timing of capacity deployment and customer offtake.
• Energy sales are anticipated to be comparable with current levels and are expected to contribute approximately $12-million.

Conference call details

The company will host a conference call to discuss its first quarter 2026 results on May 15, 2026, at 8:30 a.m. ET. The conference call can be accessed by dialling the following numbers: 1-877-407-9039 or 1-201-689-8470.

A live webcast and replay will be available on Digi Power X's website.

Option and RSU (restricted share unit) grants

The company also announces the grant of a total of 650,000 stock options and 1.73 million RSUs to certain officers, directors, management, key consultants and employees of the company in accordance with the company's stock option plan and restricted share unit plan, respectively.

Each stock option is exercisable for a subordinate voting share of the company at a price of $9.84 for a period of five years from the date of grant. The stock options vest fully on the date of grant and are subject to the terms and conditions of the plan. Each RSU entitles the holder to acquire one subordinate voting share of the company on vesting. The RSUs granted to officers, directors and employees will vest in three equal tranches, on May 15, 2027, 2028 and 2029.

About Digi Power X Inc.

Digi Power X is a vertically integrated AI infrastructure company developing and operating purpose-built data centres, GPU cloud capacity, and modular and mobile compute platforms. The company holds approximately 55 per cent of U.S. Data Centers Inc., which commercializes the ARMS modular data centre platform and the URP-1 robotics line. Digi Power X is headquartered in Miami, Fla., with operating sites in Columbiana, Ala., and Niagara Falls, N.Y.

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