SharonAI Q2 Revenue Hits $1.9M, But $430M Net Loss Driven by Non-Cash Convertible Note Fair Value Adjustment
SHAZ has more than doubled off its 52-week low of $16.55.
Summary
SharonAI reported Q2 2026 revenue of $1.93M and a $430.4M net loss, driven by a non-cash $400.5M fair value adjustment on convertible notes. Adjusted EBITDA was $0.6M. The company holds $1.86B in cash and an $8.8B contracted backlog.
Key Events · Earnings and Guidance · SHAZ
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Q2 Revenue Grows to $1.93M
Revenue increased to $1.93M from $0.4M in Q2 2025, driven by early contract deployments. Gross profit was $1.2M.
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$430.4M Net Loss from Non-Cash Fair Value Adjustment
Net loss of $430.4M includes a $400.5M non-cash charge from the fair value remeasurement of convertible notes, reflecting the stock price appreciation. Excluding this and other non-cash items, adjusted EBITDA was $0.6M.
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$1.86B Cash Position After $1.6B Financing
Cash and equivalents stood at $1.86B as of June 30, 2026, following the $1.6B strategic financing closed in June 2026. Total liabilities were $1.19B, including $1.01B in convertible notes.
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$8.8B Contracted TCV and 212MW Capacity
Total contracted TCV reached ~$8.8B, anchored by a six-year NVIDIA collaboration worth up to $4.88B. Secured data center capacity expanded to 212MW, with 64,000+ GPUs expected by mid-2027.
Analysis · SHAZ · Technology
SharonAI's Q2 2026 results present a sharp dichotomy: revenue climbed to $1.93M from $0.4M a year ago, yet the bottom line swung to a $430.4M net loss. That loss is almost entirely non-cash—a $400.5M fair value adjustment on convertible notes triggered by the stock's rise. Adjusted EBITDA, which strips out those mark-to-market swings, was a modest $0.6M. The company is well-capitalized with $1.86B in cash after a $1.6B June financing, and its $8.8B contracted backlog and 212MW of secured capacity signal massive future revenue potential. The key risk is execution: turning those contracts into cash flow while managing the dilutive overhang from convertible notes and warrants.
At the time of this filing, SHAZ was trading at $55.24 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.8B. The 52-week trading range was $16.55 to $97.48. This filing was assessed with neutral market sentiment and an importance score of 9 out of 10.