Aug 18, 2026 earnings call — Contracted units growth and construction timing
Contracted units increased 33% to 42,687 units as of June 30, 2026.
Revenue $0.0B (est $0.0B) · EPS $-0.47 (est $-0.24)
Key quotes
"The key takeaway here is that contracted units is the most important KPI we track."
"While revenue declined in the short term, this was due to the timing of our construction contracts for new networks, which can occasionally have an outsized short-term effect on our quarters at the moment."
"All in, we have identified about $1.9 million in operating cost benefits on an annualized run rate basis, net of a few hires and other add backs."
Analyst Q&A 3
Sales ramp, investment, and customer mix
Q (Derek Greenberg · Maxim Group): He asked how the sales team has progressed year-to-date, whether it's fully ramped or needs more time, and if any more sales investment is expected. He also asked about the mix of contracted units: conversions of existing customer portfolios versus new logos, and about any supply chain or tariff impacts.
A: Management said they invested heavily early to test the market, learned from that, and have refined the sales approach from broad to targeted. They expect sales expense to drop short term while keeping velocity, then add spending back as they scale. They also said conversions are increasing versus new construction, and they have not seen significant supply chain disruptions from tariffs.
"So I would see us pulling back the expense in sales over the short term, but still getting a lot of velocity." — Daniel McDonough (CHAIR)
Why construction was slow in Q2
Q (George Sutton · Craig-Hallum): He asked for more detail on the slow construction in Q2, what they expect for the ramp, and whether the company is meeting construction timelines. He noted some work is managed services and may be outside the company's control.
A: Management said their backlog is not due to an inability to fulfill. They said they have almost no control over the construction side because they are sequenced with the general contractor on new developments.
"We have almost no control over the construction side of this business because, of course, we're sequenced in with the general contractor on these new developments." — Daniel McDonough (CHAIR)
Pipeline numbers and REIT overlap
Q (George Sutton · Craig-Hallum): He asked whether the 4,100 units from the two large REITs are the same as or separate from the 98,000-unit pipeline and the 500 properties mentioned. He wanted to understand how those numbers flow together.
A: Management said in Q3 and Q4 they expect more conversions rather than new construction, which are quicker and more predictable from contracting to revenue. They clarified the REIT opportunities and the 98,000-unit pipeline are mutually exclusive; companies are allocating properties as they free themselves from old contracts, and the firm does not yet have the specific property names.
"They will talk to us as we go into the third and fourth quarter about the properties they're allocating for 2027. We don't have those property names yet." — Barry Rubens (CEO)