WhiteFiber, Inc. Segments Disclosure
15. SEGMENT REPORTING
The Company has two reportable segments: cloud services and colocation services. The reportable segments are identified based on the types of service performed.
Gross profit (loss) is the segment performance measure the (“CODM”) uses to assess the Company’s reportable segments.
The cloud services segment generates revenue from providing high performance computing services to support generative AI workstreams. Cost of revenue consists of direct production costs, including electricity costs, data center lease expense, GPU servers lease expense, and other relevant costs, but excluding depreciation and amortization.
Colocation services generate revenue by providing customers with physical space, power and cooling within the data center facility. Cost of revenue consists of direct production costs related to our HPC data center services, including electricity costs, lease costs, data center employees’ wage expenses, and other relevant costs but excluding depreciation and amortization.
The CODM analyzes the performance of the segments based on reportable segment revenue and reportable segment cost of revenue. operating segments have been aggregated to form the reportable segments.
Other than the $20.1 million of goodwill from the Enovum acquisition allocated to the colocation services, the Company does not allocate all assets to the reporting segments as these are managed on an entity-wide basis. Therefore, the Company does not separately disclose the total assets of its reportable operating segments.
All Other revenue is generated from equipment leases with external customers.
The following tables present segment revenue and segment gross profit reviewed by the CODM:
The Year Ended December 31, 2025
| Cloud services | Colocation services | Total | ||||||||||
| Revenue from external customers | $ | 68,753,609 | $ | 8,913,816 | $ | 77,667,425 | ||||||
| Reconciliation of revenue | ||||||||||||
| Other revenue (a) | 1,496,827 | 1,496,827 | ||||||||||
| Total consolidated revenue | 79,164,252 | |||||||||||
| Less: | ||||||||||||
| Electricity costs | 2,450,710 | 1,438,218 | 3,888,928 | |||||||||
| Datacenter lease expense | 5,410,230 | 1,025,851 | 6,436,081 | |||||||||
| GPU lease expense | 14,741,928 | 14,741,928 | ||||||||||
| Wage expense | 406,787 | 406,787 | ||||||||||
| Customer support contractor fees | 1,124,902 | 1,124,902 | ||||||||||
| Other segment items (b) | 2,858,593 | 579,679 | 3,438,272 | |||||||||
| Segment gross profit | $ | 42,167,246 | $ | 5,463,281 | $ | 47,630,527 | ||||||
| (a) | Other revenue is primarily attributable to equipment leasing revenue and is therefore not included in the total for segment gross profit. |
| (b) | All amounts included within Other segment items are individually insignificant. |
The Year Ended December 31, 2024
| Cloud services | Colocation services | Total | ||||||||||
| Revenue from external customers | $ | 45,727,736 | $ | 1,361,241 | $ | 47,088,977 | ||||||
| Reconciliation of revenue | ||||||||||||
| Other revenue (a) | 550,260 | 550,260 | ||||||||||
| Total consolidated revenue | 47,639,237 | |||||||||||
| Less: | ||||||||||||
| Electricity costs | 1,198,060 | 188,559 | 1,386,619 | |||||||||
| Datacenter lease expense | 3,558,987 | 149,260 | 3,708,247 | |||||||||
| GPU lease expense | 13,640,737 | 13,640,737 | ||||||||||
| Wage expense | 12,156 | 12,156 | ||||||||||
| Other segment items (b) | 1,327,546 | 140,526 | 1,468,072 | |||||||||
| Segment gross profit | $ | 26,002,406 | $ | 870,740 | $ | 26,873,146 | ||||||
| (a) | Other revenue is primarily attributable to Equipment Leasing and is therefore not included in the total for segment gross profit. |
| (b) | All amounts included within Other segment items are individually insignificant. |
The following table presents the reconciliation of segment gross profit to net income before taxes:
| For the Years Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Segment gross profit | $ | 47,630,527 | $ | 26,873,146 | ||||
| Reconciling Items: | ||||||||
| Other revenue (a) | 1,496,827 | 550,260 | ||||||
| Depreciation and amortization expenses | (23,440,884 | ) | (16,511,406 | ) | ||||
| General and administrative expenses | (52,507,246 | ) | (10,283,615 | ) | ||||
| Net loss from disposal of property and equipment | (372,993 | ) | ||||||
| Other income, net | 1,425,399 | 1,615,634 | ||||||
| Net (loss) income before taxes | $ | (25,768,370 | ) | $ | 2,244,019 | |||
| (a) | Other revenue is primarily attributable to Equipment Leasing and is therefore not included in the total for segment gross profit |
Long-lived assets consist of property, plant and equipment, operating lease right-of-use assets and finance lease right-of-use assets. The geographic information for long-lived assets as of December 31, 2025 and December 31, 2024 are as follows:
| For the Years Ended | ||||||||
| December 31, 2025 | December 31, 2024 | |||||||
| United States | $ | 124,522,633 | $ | |||||
| Iceland | 113,516,239 | 59,766,182 | ||||||
| Canada | 122,776,181 | 43,981,419 | ||||||
| $ | 360,815,053 | $ | 103,747,601 | |||||
Revenue by geographic location, based on the location where services are provided by the Company to the customer, with no other country individually comprising greater than 10% of total revenue, are as follows:
| For the Years Ended | ||||||||
| December 31, 2025 | December 31, 2024 | |||||||
| Iceland | $ | 69,167,349 | $ | 46,190,367 | ||||
| Canada | 8,913,816 | 1,361,241 | ||||||
| Other countries | 1,083,087 | 87,629 | ||||||
| $ | 79,164,252 | $ | 47,639,237 | |||||
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About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.