ChronoScale Completes Ekso Sale After Revenue Jump
Revenue reached $41.5 million in the fiscal first quarter ended August 31, 2026, and the company said it is on track for $1 billion in annualized run-rate revenue by calendar third quarter 2027.
ChronoScale Holdings Corporation (CHRN), an accelerated compute platform built for artificial intelligence workloads, completed the sale of its legacy Ekso Bionics business on September 30, 2026, after the fiscal first quarter ended August 31, 2026, in which revenue rose sharply.
The Menlo Park company said the Ekso exit eliminates ongoing operating funding requirements for that unit. Following a May 5, 2026, business combination, ChronoScale classified the legacy Ekso business as held for sale and reported it in discontinued operations. Results in this release reflect continuing operations only.
Revenue was $41.5 million, up 148% from $16.7 million in the fiscal first quarter of 2026. The increase was primarily attributable to a new customer during the three months ended August 31, 2026, including revenue from the sale of AI infrastructure hardware and related support and maintenance under resale arrangements.
Cost of revenues was $45.6 million, up 91% from $23.9 million a year earlier. ChronoScale attributed the rise primarily to higher AI hardware purchases under resale, higher depreciation and amortization from additional in-service compute equipment and leases, higher energy costs from increased rates and usage, and higher personnel expenses, partly offset by lower lease costs after prior-period renegotiations.
Selling, general and administrative expense increased approximately $20.4 million, to $20.7 million from $0.4 million, on higher stock-based compensation, professional services for discrete transactions, and personnel from increased headcount.
Net loss from continuing operations was $26.4 million, or $0.18 a share, compared with $11.2 million, or $0.08 a share, a year earlier. Adjusted EBITDA, a non-GAAP measure, was $5.9 million. Net loss from discontinued operations was $16.1 million. Cash and cash equivalents were $15.2 million as of August 31, 2026.
The company secured a 50 MW AI compute deployment with Microsoft in North America, expected to integrate NVIDIA GB300 NVL72 systems with liquid cooling, networking, storage, software, and purpose-built data center infrastructure. It also entered a strategic partnership with Nutanix for enterprise-ready AI infrastructure and a three-year partnership with Baseten Labs to support a planned deployment of approximately 4 MW of AI compute capacity, with completion expected in calendar first quarter 2027.
Subsequent to quarter-end, ChronoScale announced a contract extension with an existing AI customer and a new customer agreement, putting it on track for $1 billion in annualized run-rate revenue by calendar third quarter 2027. It received $328.2 million in aggregate prepayments under existing customer contracts. Annualized run-rate revenue is calculated by multiplying revenue expected to be recognized under customer contracts in a quarterly period by four. It is not a forecast of revenue for any specific reporting period and is not a measure calculated in accordance with GAAP. Actual revenue may differ materially.
Chief Executive Officer Cenly Chen said the company’s priority is disciplined execution and delivering infrastructure customers need at scale.