Hyperscale Data (GPUS) AI Stock Analysis

• Market Cap: $11.12M
• Dividend Yield: N/A
• Average Volume (3M): 17.37M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.73
• Revenue Growth: -41.22%
• EPS Growth: 99.86%
• Country: US
• Employees: 374
• Sector: Industrials
• Sector Strength: 93
• Industry: Aerospace & Defense
• EPS (TTM): -24.82
• Shares Outstanding: 2,227,566
• 10 Day Avg. Volume: 6,370,153
• 30 Day Avg. Volume: 17,366,902
• PEG Ratio: >-0.01
• Price to Book (P/B): 33.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.17
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: $5.00 ▲(3.09%Upside)

The overall stock score is influenced primarily by significant financial challenges, including high leverage and negative cash flows, which weigh heavily on the score. However, recent corporate events provide a positive outlook, with strategic initiatives aimed at improving financial structure and growth prospects. Technical indicators show mixed signals, suggesting potential for price movements. Valuation concerns persist due to negative earnings.

Hyperscale Data Business Overview & Revenue Model

Company Description

Hyperscale Data (GPUS) is a cutting-edge technology company specializing in the development and deployment of advanced data processing solutions tailored for high-performance computing environments. The company operates within the technology and data infrastructure sectors, providing scalable GPU-based systems and services designed to accelerate machine learning, artificial intelligence, and complex computational tasks. Its core products include GPU cloud services, data analytics platforms, and custom hardware solutions optimized for speed and efficiency in data-intensive operations.

How the Company Makes Money

Hyperscale Data generates revenue primarily through a combination of subscription-based cloud services, hardware sales, and consulting services. The company's GPU cloud services allow businesses to rent high-performance computing power on a pay-as-you-go basis, providing a flexible and scalable solution for managing data workloads. Additionally, Hyperscale Data sells custom hardware solutions to enterprises requiring on-premise infrastructure, creating another significant revenue stream. Consulting and support services further contribute to earnings by offering expertise in optimizing data processing and enhancing system performance. Strategic partnerships with leading technology firms and data centers expand its market reach and drive additional revenue through joint product offerings and integrated solutions.

Hyperscale Data Financial Statement Overview

Summary

Hyperscale Data shows impressive revenue growth but struggles with profitability, indicating significant cost pressures. A high debt-to-equity ratio and negative cash flow pose substantial risks to the company's long-term financial health.

Income Statement

The company has seen significant revenue growth over the past few years, with a notable increase from 2022 to 2023. Despite this growth, the company struggles with profitability, as indicated by consistently negative EBIT and net income margins. The gross profit margin has also decreased significantly in the most recent year, indicating cost pressures. Overall, while revenue growth is a positive sign, the lack of profitability remains a major concern.

Balance Sheet

The company's balance sheet shows a high level of debt relative to equity, with an increasing debt-to-equity ratio over the years. The equity ratio has substantially decreased, suggesting a growing reliance on debt financing. Return on equity is negative, reflecting consistent net losses. The current financial structure poses risks if profitability does not improve soon.

Cash Flow

Cash flow analysis shows some improvement in free cash flow, though it remains negative. Operating cash flow has turned negative in the most recent year after a positive figure in 2022, indicating operational struggles. The company has been able to secure financing, but this may not be sustainable if operational cash flows do not recover.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
140.91M	156.44M	117.64M	52.40M	23.87M	22.36M
	Gross Profit
29.71M	31.06M	50.68M	28.54M	7.51M	3.06M
	EBIT
-102.42M	-153.72M	-139.48M	-18.36M	-6.03M	-24.70M
	EBITDA
-112.04M	-173.14M	-134.66M	-17.58M	-19.86M	-18.35M
	Net Income Common Stockholders
-155.69M	-231.03M	-181.82M	-23.25M	-29.41M	-32.91M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.55M	12.05M	17.03M	59.13M	21.24M	1.12M
	Total Assets
5.89M	299.19M	561.51M	490.29M	75.64M	42.75M
	Total Debt
491.00K	61.14M	91.39M	100.41M	9.46M	13.74M
	Net Debt
-2.06M	52.51M	83.45M	84.50M	-9.22M	13.26M
	Total Liabilities
2.43M	240.29M	337.53M	145.11M	26.51M	35.80M
	Stockholders Equity
3.46M	44.72M	206.49M	226.84M	48.31M	6.94M
Cash Flow		Free Cash Flow
-18.19M	-14.09M	-72.82M	-213.66M	-11.76M	-10.37M
	Operating Cash Flow
-13.49M	-5.43M	26.49M	-61.67M	-11.18M	-10.18M
	Investing Cash Flow
-18.50M	-29.52M	-158.64M	-333.45M	-7.78M	-2.85M
	Financing Cash Flow
35.85M	37.04M	124.11M	397.94M	37.28M	12.93M

Hyperscale Data Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GPUS, the sentiment is Neutral. The current price of 4.85 is below the 20-day moving average (MA) of 5.81, above the 50-day MA of 3.86, and below the 200-day MA of 5.28, indicating a neutral trend. The MACD of 0.26 indicates Positive momentum. The RSI at 49.48 is Neutral, neither overbought nor oversold. The STOCH value of 10.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GPUS.

Hyperscale Data Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$4.49B	12.28	5.32%	248.53%	4.08%	-12.00%
PL	63 Neutral	$1.21B	―	-22.54%	―	9.52%	24.27%
GPUS	50 Neutral	$11.12M	―	-203.32%	―	-41.22%	99.86%
SKYH	40 Underperform	$749.71M	―	-42.87%	―	102.32%	13.67%
MNTS	38 Underperform	$9.41M	―	688.16%	―	-46.28%	93.33%
SIDU	37 Underperform	$27.09M	―	-109.05%	―	-18.70%	84.35%
EVTL	25 Underperform	$442.47M	―	115.25%	―	―	23.26%

Hyperscale Data Corporate Events

Hyperscale Data Issues Shares After Stock Conversion

On February 25, 2025, Hyperscale Data, Inc. entered into an amended forbearance agreement with an institutional investor, issuing a $3.5 million convertible promissory note that matured on May 15, 2025. The maturity date was later extended to June 30, 2025. Additionally, between May 22 and June 3, 2025, the company issued 573,416 shares of Class A Common Stock upon conversion of Series B Convertible Preferred Stock, resulting in a total of 2,801,001 shares of Class A Common Stock outstanding as of June 3, 2025.

Hyperscale Data Announces Cash Dividends for Preferred Stock

On May 20, 2025, Hyperscale Data announced cash dividends for its Series D and Series E Preferred Stock, with payment scheduled for June 10, 2025. The Series E dividend includes a previously deferred payment, underscoring the company’s commitment to consistent dividends and demonstrating its creditworthiness.

Hyperscale Data Approves Stock Conversion at Special Meeting

On May 19, 2025, Hyperscale Data, Inc. held a Special Meeting of Stockholders where seven proposals were approved, all related to the conversion of preferred stock and various notes into Class A Common Stock. This strategic move aims to streamline the company’s capital structure and potentially enhance its market position by increasing the liquidity of its shares, which could have significant implications for its stakeholders.

Hyperscale Data Approves Executive Salary Increases

On April 30, 2025, Hyperscale Data, Inc. announced that its Board of Directors approved salary increases for its top executives. Effective May 1, 2025, CEO William B. Horne’s salary was raised to $500,000, while President and General Counsel Henry C.W. Nisser’s salary was increased to $400,000.

Hyperscale Data Announces Series D and E Dividends

On April 17, 2025, Hyperscale Data, Inc. announced cash dividends for its Series D and Series E Preferred Stocks, with payment scheduled for May 12, 2025. The company also deferred the monthly cash dividend for the Series E Preferred Stock for April 2025, as allowed by its certificate of designations, impacting future dividend accruals.

Hyperscale Data Secures $50M Equity Financing Deal

On March 31, 2025, Hyperscale Data, Inc. entered into a Securities Purchase Agreement with SJC Lending LLC for up to $50 million in new equity financing. This capital will accelerate the development of a state-of-the-art data center in Michigan, designed to support enterprise, AI, and high-performance computing cloud providers. The transaction is structured through multiple closings, with the investor obligated to fund a minimum of $1 million monthly. This financing is seen as a strong endorsement of Hyperscale Data’s business model and will contribute to economic development and job creation in the local community.

Hyperscale Data Announces Dividend Payments and Deferrals

On March 20, 2025, Hyperscale Data, Inc. announced a cash dividend of $0.2708333 per share for holders of its Series D Preferred Stock and a $0.20833 per share dividend for Series E Preferred Stock, covering a previously deferred payment for February 2025. The record date for both dividends is March 31, 2025, with payment scheduled for April 10, 2025. The company also decided to defer the March 2025 dividend for Series E Preferred Stock, utilizing its option to defer up to 12 consecutive monthly payments without them being considered missed. This decision reflects the company’s strategic financial management and its impact on stakeholders, particularly those holding Series E Preferred Stock.