--- title: "Why Sharon AI (SHAZ) Stock Is Down After Q2 Earnings" type: "News" locale: "en" url: "https://longbridge.com/en/news/295144514.md" description: "Sharon AI (SHAZ) shares fell 8.55% after reporting a widened Q2 net loss of $430.4 million, driven by $423.8 million in non-cash fair value losses on convertible notes. Despite missing revenue estimates and posting a significant loss, the company highlighted strong top-line growth, positive adjusted EBITDA, and major strategic milestones, including a $4.9 billion collaboration with NVIDIA for GPU infrastructure." datetime: "2026-08-06T21:03:48.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/295144514.md) - [en](https://longbridge.com/en/news/295144514.md) - [zh-HK](https://longbridge.com/zh-HK/news/295144514.md) --- # Why Sharon AI (SHAZ) Stock Is Down After Q2 Earnings **Sharon AI Holdings Inc (NASDAQ:SHAZ)** shares are trading lower Thursday afternoon after the Australian Neocloud provider reported a sharply widened second-quarter net loss, despite posting strong top-line growth and expanding its infrastructure platform. - **SharonAI Holdings stock is showing notable weakness. Why is SHAZ stock falling?** ## **Non-Cash Adjustments Impact Results** For the second quarter ended June 30, Sharon AI reported revenue of $1.9 million, up 412% year-over-year, though missing Wall Street estimates of $7.54 million. The company recorded a net loss of $430.4 million, compared to a loss of $2.6 million in second-quarter 2025. The loss was heavily impacted by $423.8 million in non-cash items, led by a $400.4 million fair value loss on convertible notes caused by share price appreciation. On an adjusted basis, Adjusted EBITDA turned positive to $0.6 million, up from a $1.7 million loss a year earlier. Cash reserves stood at $1.9 billion, with Total Contract Value reaching $8.8 billion. ## **Executive Commentary & Expansion** “In the second quarter, we established the commercial, infrastructure, and capital foundations for Sharon AI’s next phase of growth at scale,” said **James Manning**, co-founder and CEO. “Revenue is expected to ramp materially from the third quarter of 2026 through 2027.” Sharon AI announced key milestones, including a $4.9 billion, six-year strategic collaboration with **NVIDIA** for up to 40,000 GB300 GPUs and expanding secured AI Factory capacity to 212MW. The company expects to deploy over 64,000 NVIDIA GPUs by mid-2027. ## **SHAZ Shares Slide Thursday Afternoon** **SHAZ Price Action:** SharonAI Holdings shares were down 8.55% at $52.15 at the time of publication on Thursday, according to Benzinga Pro data. **Read Also: S&P 500, Dow Fall as Brent Jumps 4%, SanDisk Trims Losses: Stock Market Today** _Image: Shutterstock_ ### Related Stocks - [SHAZ.US](https://longbridge.com/en/quote/SHAZ.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [NVDU.US](https://longbridge.com/en/quote/NVDU.US.md) - [NVDX.US](https://longbridge.com/en/quote/NVDX.US.md) - [NVDS.US](https://longbridge.com/en/quote/NVDS.US.md) - [NVDL.US](https://longbridge.com/en/quote/NVDL.US.md) - [NVDY.US](https://longbridge.com/en/quote/NVDY.US.md) - [NVDQ.US](https://longbridge.com/en/quote/NVDQ.US.md) - [NVDD.US](https://longbridge.com/en/quote/NVDD.US.md) - [NVD.US](https://longbridge.com/en/quote/NVD.US.md) - [NVDB.US](https://longbridge.com/en/quote/NVDB.US.md) - [NVDG.US](https://longbridge.com/en/quote/NVDG.US.md) - [NVDO.US](https://longbridge.com/en/quote/NVDO.US.md) - [NVDW.US](https://longbridge.com/en/quote/NVDW.US.md) - [NVYY.US](https://longbridge.com/en/quote/NVYY.US.md) - [NYYY.US](https://longbridge.com/en/quote/NYYY.US.md) - [DIPS.US](https://longbridge.com/en/quote/DIPS.US.md) - [MAGX.US](https://longbridge.com/en/quote/MAGX.US.md) - [07388.HK](https://longbridge.com/en/quote/07388.HK.md) - [07788.HK](https://longbridge.com/en/quote/07788.HK.md) - [09388.HK](https://longbridge.com/en/quote/09388.HK.md) - [.SPX.US](https://longbridge.com/en/quote/.SPX.US.md) - [.DJI.US](https://longbridge.com/en/quote/.DJI.US.md) - [SNDK.US](https://longbridge.com/en/quote/SNDK.US.md) - [SHAZW.US](https://longbridge.com/en/quote/SHAZW.US.md) - [SHAZD.US](https://longbridge.com/en/quote/SHAZD.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) ## Related News & Research - [Firmus nearly doubles valuation to over $10.5 billion in 4 months with Nvidia-backed fundraise](https://longbridge.com/en/news/295169706.md) - [Sharon AI signs US$373 million five-year AI cloud services agreement](https://longbridge.com/en/news/294811851.md) - [Nvidia is quietly staffing a new AI safety team as it doubles down on open models](https://longbridge.com/en/news/295080576.md) - [Hon Hai subsidiary begins commercial operations of 5MW AI cluster](https://longbridge.com/en/news/294536049.md) - [OpenAI boosts AI chip dreams with AI patents from Altman-backed startup](https://longbridge.com/en/news/295148688.md)