DGXX Stock Tumbles Pre-Market Despite Bullish FY27 Guidance, ‘Strongest Ever’ Balance Sheet

• First-quarter revenue fell sharply below Wall Street’s estimates of about $11.1 million, according to Fical.ai data.
• For fiscal 2027, Digi Power X expects total revenue to range from $250 million to $300 million vs consensus estimates of roughly $201 million.
• Management highlighted the ‘strongest’ balance sheet in the company’s history with zero long-term debt.  

Shares of Digi Power X Inc (DGXX) slid nearly 7% in pre-market trading on Friday after the company’s “zero long-term debt” milestone and a bullish long-term guidance were overshadowed by a disappointing first-quarter revenue performance that missed Wall Street estimates by a wide margin.

Despite being on track for a second consecutive session of losses, DGXX shares remain poised to notch a seventh straight week of gains.

Investors weighed the company’s transition away from legacy operations toward a high-growth AI compute business, even as retail sentiment remained bullish on the stock. 

DGXX’s Q1 Revenue Miss Overshadows AI Transition Strategy

The company posted a 27% decline in first-quarter (Q1) revenue to $6.8 million, citing its planned exit from legacy operations and a pivot toward higher-growth artificial intelligence compute and colocation services. However, this came in sharply below Street estimates of about $11.1 million, according to Fical.ai data.

Net loss was $0.07 per share, compared to consensus estimates of a loss of $0.05 per share.

Management flagged the “strongest” balance sheet in the company’s history, adding that it has no long-term debt.

“The balance sheet is the strongest in the company's history - approximately $125 million in cash, $15 million in digital assets, zero long-term debt, and roughly $45 million of capital expenditure already deployed year-to-date at Columbiana - and the company is in active discussions to secure debt financing to fund future data center development to avoid shareholder dilution, providing us with the firepower needed to execute Phase 1 and the operational platform that follows,” said CEO Michel Amar.

Fiscal 2027 Revenue Forecast Tops Street Estimates

For fiscal 2027, Digi Power X expects total revenue to range from $250 million to $300 million across its three business segments. This is significantly higher than Street estimates of roughly $201 million.

The company initially projected AI colocation revenue of $80 million to $100 million, with long-term potential to grow to $200 million as capacity expands to 90 MW.

The GPU-as-a-Service business is also expected to ramp up significantly, with the company targeting an annualized revenue run rate of up to $100 million by the end of the year. Meanwhile, energy sales are expected to remain steady at around $12 million.

DGXX Bulls See Guidance Boost

Retail sentiment on Stocktwits remained ‘extremely bullish’ amid ‘extremely high’ message volumes.

Retail traders highlighted the company’s upbeat forecast, with one user expecting institutions to add shares after seeing the guidance.

Another user said the current stock value is an ‘entry point’ and attributed the drop to ‘panic sellers.’

The stock has surged more than 180% so far this year.

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