Digi Power X Inc. (DGXX) is a small-cap company in a deeply challenging financial position. Revenue is declining year-over-year, gross margins are negative in every period on record, and net losses are substantial — meaning the company is currently spending significantly more than it earns at every level of its income statement. The most recent quarter paints an even starker picture, with capital expenditures dwarfing revenue. On the positive side, liquidity has improved dramatically from a dangerously low current ratio in 2024 to a very healthy one today, suggesting the company has recently raised capital. With only two years of annual filing history available, long-term CAGR data cannot be calculated. DGXX appears to be in an early, pre-profitability buildout phase, but investors should be clear-eyed that the path to sustainable economics remains undefined by the numbers available.
Snapshot & Big Picture
Digi Power X operates in the digital infrastructure and power space. Based on the SEC filings available, the company has two full fiscal years of annual data (2024 and 2025) and one recent quarterly filing through June 2026. Revenue contracted from approximately $37.0 million in fiscal 2024 to $34.2 million in fiscal 2025 — a meaningful step backward. More concerning, the company has not achieved positive gross margins in either annual period, meaning its cost of goods sold exceeds its revenues before any operating expenses are even considered. Net losses have widened sharply in absolute margin terms from 2024 to 2025, though the most recent quarter shows extreme deterioration driven by a surge in capital spending relative to revenues.
| Metric | FY 2024 | FY 2025 |
|---|---|---|
| Revenue | $37,002,263 | $34,188,226 |
| Gross Margin | -30.7% | -9.4% |
| Net Margin | -33.5% | -82.9% |
| Current Ratio | 0.68 | 10.97 |
| CapEx | $3,790,777 | $17,297,576 |
| CapEx / Revenue | 10.2% | 50.6% |
Latest Quarter Snapshot (Q2 2026 — Most Current Data)
The quarter ending June 30, 2026 is the most current data available and paints a strikingly different picture from the annual figures. Revenue for just this quarter came in at $6.6 million, while capital expenditures hit $15.2 million — meaning CapEx alone was more than twice the quarter's entire revenue. The gross margin deteriorated sharply to -83.3%, and the net margin reached -216.6%, indicating the company is burning cash at a rapid pace relative to its current revenue base. This level of spending strongly suggests an aggressive infrastructure buildout phase. The current ratio improved further to 11.25, which is a sign the company holds substantial short-term liquidity — consistent with a recent equity or debt raise used to fund the investment program. EBITDA and operating margin were not available in the filing for this period.
| Metric | Q2 2026 (ending June 30, 2026) |
|---|---|
| Revenue | $6,628,607 |
| Gross Margin | -83.3% |
| Net Margin | -216.6% |
| Current Ratio | 11.25 |
| CapEx | $15,172,560 |
| CapEx / Revenue | 228.9% |
Profitability
DGXX has not achieved positive gross margins in any period covered by its SEC filings. However, gross margin did improve notably from -30.7% in FY 2024 to -9.4% in FY 2025 — a meaningful directional improvement suggesting better cost management or a shift in revenue mix. Unfortunately, this gross margin improvement did not translate to a better net margin; net losses deepened dramatically from -33.5% to -82.9% at the net income level in the same period, likely reflecting higher operating and non-operating costs. The most recent quarter reversed even the gross margin progress, falling to -83.3%, which may reflect the disruption or ramp-up costs associated with the heavy capital investment underway. EBITDA and operating margin figures were not available in any of the filings provided, limiting a full-picture view of operating performance.
Financial Health & Capital Expenditures
The company's liquidity position transformed dramatically between fiscal years. In FY 2024, the current ratio of 0.68 indicated the company could not cover its short-term liabilities with current assets — a red flag for near-term solvency. By FY 2025, the current ratio had surged to 10.97, and it held at 11.25 in the most recent quarter, strongly implying a significant capital raise occurred in the intervening period. Debt-to-equity ratios were not available in any of the filings provided.
Capital intensity is rising sharply and is the defining financial story at DGXX right now. CapEx grew from $3.8 million (10.2% of revenue) in FY 2024 to $17.3 million (50.6% of revenue) in FY 2025 — a more than fourfold increase. In the single quarter ending June 2026, CapEx reached $15.2 million, or 228.9% of that quarter's revenue. This extraordinary level of reinvestment relative to current revenues suggests the company is building out infrastructure capacity well ahead of revenue generation — a common pattern in data center, power infrastructure, or mining-adjacent businesses. Whether this investment translates into future revenue growth depends entirely on whether those assets can be put to productive use at scale. The current cash cushion (implied by the high current ratio) provides a runway, but the burn rate is substantial.
Growth
With only two fiscal years of annual revenue data in DGXX's SEC filing history, none of the standard CAGR windows can be calculated.
| CAGR Window | Start Year | End Year | CAGR | Note |
|---|---|---|---|---|
| 3-Year | FY 2022 | FY 2025 | N/A | Not enough filing history; data does not extend to FY 2022 |
| 5-Year | FY 2020 | FY 2025 | N/A | Not enough filing history; data does not extend to FY 2020 |
| 10-Year | FY 2015 | FY 2025 | N/A | Not enough filing history; data does not extend to FY 2015 |
Because DGXX's available SEC filing history spans only FY 2024 and FY 2025, no multi-year CAGR can be derived. What can be observed is that revenue declined approximately 7.6% from FY 2024 to FY 2025, which is the wrong direction for a company at this stage — though the massive capital investment currently underway may be intended to reverse that trend in future periods.
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