Corvex reported $3.8 million in second-quarter 2026 revenue, its first full reporting period including the AI cloud computing business acquired through its March merger with Corvex Legacy Holdings. Company leaders said the quarter’s reported revenue reflected the amount of computing capacity that was live and generating revenue during the period, rather than the full level of signed customer commitments.
As of the earnings call date, Corvex said contracted annualized recurring revenue on live compute was approximately $22 million, including a compute delivery announced Aug. 4. The company defines the metric as the annualized value of fixed contractual fees from capacity that has been delivered, accepted by customers and is generating revenue. It excludes contracted capacity that has not yet entered service.
AI Infrastructure Business and Product Development
The company’s AI factory contracts are take-or-pay arrangements, Crystal said, with customers paying fixed fees for reserved computing and storage capacity regardless of their utilization. Corvex said all of its current AI platform revenue comes from fixed-term contracts.
Crystal said demand for AI infrastructure exceeds available supply, with energized, permitted, cooled and connected power capacity representing a key industry constraint. He said Corvex evaluates power costs, hardware costs, financing, contract duration, residual values and customer credit before approving new cluster deployments.
Corvex Token Factory version one is now operating in closed alpha, Co-Founder and Co-CEO Seth Demsey said. The platform is intended to provide API access to open-weight AI models through Corvex’s inference engine. Demsey said the company plans further releases in the third and fourth quarters.
During the quarter, Corvex also completed planning for version two of its cloud-management software and moved into execution. Demsey said the software is designed to improve automation, reliability and scalability as the platform expands.
Financial Results and Expenses
Chief Financial Officer Chance Moreland said all $3.8 million of second-quarter revenue came from AI platform and services operations. Revenue totaled $4.3 million for the six months ended June 30 and for the acquired business from March 19 through June 30.
Cost of compute for the AI platform and services was $2.1 million in the quarter, excluding depreciation and amortization. Those costs primarily included data-center rent, power, network access and directly attributable labor. Depreciation and amortization totaled $2.7 million, largely reflecting servers, networking equipment, computing hardware, finance lease amortization and acquired intangibles.
Operating expenses included:
- Technology and infrastructure expense of $1.4 million;
- Sales and marketing expense of $700,000; and
- General and administrative expense of $12.1 million.
Moreland said stock-based compensation totaled $9.4 million in the quarter, including $7.6 million recorded in general and administrative expenses. The expense was driven primarily by replacement equity awards issued for Corvex OpCo options and restricted stock units in connection with the merger.
The company said the assumed awards had total fair value of about $148.5 million. Of that amount, approximately $4.9 million was included in purchase consideration and approximately $143.6 million is expected to be recognized as compensation expense through 2030.
Corvex posted a net loss of $12.8 million for the quarter and a net loss attributable to common stockholders of $12.9 million. Other income included a $2.5 million noncash gain on disposal of assets following the June 30 transfer of legacy healthcare assets to a lender in full satisfaction of a bridge loan.
Adjusted EBITDA was negative $3.2 million in the second quarter and negative $4.8 million for the first six months of 2026. Adjusted EBITDA for the AI platform was negative $2.3 million for the quarter.
Balance Sheet, Capital Needs and Governance
Corvex ended the quarter with $21.7 million in cash and cash equivalents, $31.4 million in net property and equipment, $519 million in goodwill and $15 million in net intangible assets. The company said it had no funded debt outstanding after extinguishing the bridge loan associated with the pre-merger business. Finance lease liabilities were $9.5 million and operating lease liabilities totaled $5.5 million.
For the six months ended June 30, Corvex used $9.6 million in operating cash flow. Moreland said the amount included approximately $1.9 million related to winding down the legacy healthcare business, $1.6 million of nonrecurring merger-related costs, and a $2.8 million capital-investment deposit that was refunded in July.
Moreland said continued infrastructure expansion will require additional capital. He cited the company’s Aug. 4 Blackwell expansion as an example of a project funded through debt financing, a customer prepayment and existing cash.
After the quarter ended, stockholders approved preferred-share conversions that resulted in approximately 56.6 million common shares outstanding on an as-converted basis as of July 8, according to the company. Corvex also filed a resale registration statement covering up to 53.4 million shares held or issuable to existing holders. Moreland said the filing was not a primary offering and would not provide proceeds to the company.
Execution Priorities
Crystal said the company’s immediate priorities include expanding power capacity, bringing more compute capacity into service, converting its business pipeline, advancing Token Factory beyond its alpha stage, and improving internal controls and back-office operations.
Corvex disclosed that material weaknesses reported in its 2025 annual filing remained unremediated during the quarter. Moreland said the company engaged a top-10 U.S. accounting and advisory firm to assist with risk assessment, Sarbanes-Oxley compliance scoping, implementation and testing of internal controls.
Crystal acknowledged that revenue remains concentrated among a small number of customers and said investors should evaluate Corvex’s progress based on contracted power, contracted annualized recurring revenue on live compute, and the capacity it places into service.
About Movano (NASDAQ:MOVE)
Movano Health, Inc (NASDAQ: MOVE) is a health technology company focused on developing wearable devices for continuous biometric monitoring. The company’s core mission is to provide accessible, real-time health insights through noninvasive sensors, enabling individuals and care teams to track vital signs and physiological trends outside of traditional clinical settings.
Movano’s flagship product is a biometric monitoring ring designed to measure parameters such as heart rate, blood oxygen saturation, skin temperature, and sleep quality.
