ChronoScale Revenue Jumps 148% but Costs Outpace Sales, Net Loss Widens to $26.4M
CHRN has more than doubled off its 52-week low of $3.5 on elevated volume (1.9× avg).
Summary
ChronoScale reported Q1 FY2027 revenue of $41.5M, up 148% year-over-year, but cost of revenues hit $45.6M — exceeding revenue — and SG&A ballooned to $20.7M from $0.4M, driving a $26.4M net loss from continuing operations ($0.18/share). Adjusted EBITDA fell to $5.9M from $9.4M a year ago, and the company ended the quarter with just $15.2M in cash. The top-line growth is real, but the margin picture is ugly: hardware resale revenue is low-margin and the cost structure is scaling faster than the business. Management highlighted the 50 MW Microsoft deployment, Nutanix and Baseten partnerships, and the completed Ekso Bionics sale, while reiterating a target of $1B annualized run-rate revenue by calendar Q3 2027. The $328.2M in customer prepayments disclosed in the 10-Q filed October 14 provides some funding cushion, but with $2.3B in capex commitments and only $15.2M cash on hand, the capital raise question looms large — the $500M shelf filed October 6 is the likely next step.
At the time of this announcement, CHRN was trading at $16.05 on NASDAQ in the Technology sector, with a market capitalization of approximately $2.3B. The 52-week trading range was $3.50 to $30.00. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: GlobeNewswire.