Sharonai Holdings — Financial Results
Revenue Nearly Quadrupled, But the Business Is Still Burning Cash
| Metric | 2025 | 2024 |
|---|---|---|
| Revenue | $1,567K | $438K |
| Cost of Revenue | $1,466K | $720K |
| Gross Profit (Loss) | $101K | ($282K) |
Revenue grew 258% year-over-year, driven by the shift from Filecoin data storage into GPU cloud services. Crucially, the company turned gross profit positive for the first time — meaning it now earns slightly more from its services than it costs to deliver them. That said, $1.6 million in revenue is extremely small for a company of this ambition, and the business remains deeply unprofitable once operating costs are included.
A $26 Million Accounting Loss Dominated the Bottom Line
| Item | 2025 | 2024 |
|---|---|---|
| Change in fair value of convertible notes | ($26,031K) | $0 |
| Net Loss | ($39,815K) | ($3,924K) |
The net loss ballooned from $3.9 million to $39.8 million, but the single biggest driver was a $26 million non-cash accounting charge (a loss that exists on paper but does not involve cash leaving the business) related to how the company's convertible notes — debt that can convert into shares — were valued at issuance. Stripping that out, the underlying operational loss is considerably smaller, though still significant.
SG&A Costs Exploded as the Company Prepared for a Public Listing
Selling, general and administrative (SG&A) expenses — the costs of running the business beyond direct service delivery — jumped from $2.4 million to $12.1 million. Management attributes this to legal, consulting, and audit fees tied to the merger and NASDAQ listing process, plus growing headcount. They expect these costs to normalise over time, but investors should watch whether that actually happens.
The Company Went Public and Raised Over $220 Million in Under Two Months
Between December 2025 and February 2026, SharonAI completed its merger onto public markets, raised $103 million via convertible notes in a pre-IPO round, and then raised a further $125 million on NASDAQ. As of December 31, 2025, the company held $71 million in cash. This capital is intended to fund GPU infrastructure expansion, though the company explicitly states it expects to continue incurring losses and will need ongoing external funding.
The Company Sold Its Texas Data Center Joint Venture and Went Pure-Play Cloud
In December 2025, SharonAI exited a 50/50 joint venture to build a natural gas-powered data center in Texas, selling its stake for $70 million. This was a deliberate strategic pivot — the company decided to focus entirely on operating GPU cloud services rather than also developing physical data center sites. This simplifies the business model but concentrates all revenue risk on the GPU cloud segment, which is still in early-stage ramp-up.
CEO Departed Alongside the Public Listing
The company's CEO resigned in January 2026, with the board chairman — James Manning, who also owns more than 10% of the company — stepping in as CEO. Leadership transitions at critical growth stages carry execution risk, and investors should monitor whether a permanent CEO appointment follows.