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Summary

Corvex Inc reported Q1 2026 revenue of $510,000 with an operating loss of $4.8 million. On a pro forma basis, revenue was $3.65 million, primarily from the AI platform.

The company completed a merger with Corvex Legacy Holdings Inc, leading to a significant restructuring and issuance of new preferred stock.

Corvex Inc is focusing on building a vertically integrated AI infrastructure platform, targeting AI model labs, government initiatives, and enterprises with scalable infrastructure and secure computing technology.

Strategic initiatives include developing an AI factory, a scalable Token Factory, and confidential computing to enhance security and performance for AI workloads.

Management expressed optimism about capturing growth in the AI infrastructure market, highlighting their differentiated strategy and investment in high-value layers of the AI stack.

Full Transcript

OPERATOR

Hello everyone. Thank you for joining us and welcome to Corvex's first quarter 2026 earnings call. I will now hand the call over to Jay Kogan, CFO. Please go ahead sir.

Jay Kogan (Chief Financial Officer)

Thanks, Kara. Good afternoon everyone and welcome to Corvex's first quarter 2026 earnings conference call. Joining me today are Corvex's CEO Jay Crystal and Co-Founder and Director Seth Dempsey. A press release detailing our results was issued this afternoon and is available in the Investor Relations section of our website. A replay and transcript will be posted following the call. During today's call we will make forward looking statements based on current expectations. Our actual results may differ materially from such statements. Descriptions of the risks and uncertainties associated with Corvex are included in our SEC filings which can be accessed through our website. Today's discussion also includes references to non GAAP financial measures. Reconciliation to the most directly comparable GAAP measure is included in our press release and on our IR website. On March 19, 2026, Corvex Inc. Formerly known as Movano Inc. acquired Corvex Legacy Holdings Inc. Also known as Corvex OpCo.. The Company was renamed Corvex Inc., effective March 23, 2026 pursuant to the merger agreement. At closing, we issued to the prior security holders of Corvex Opco 240,562 shares of Series B convertible Preferred Stock, representing no more than 19.9% of our outstanding common stock immediately prior to closing, as well as 23,551,519.5 shares of Series C Preferred Stock and 30,227,052.4 shares of Series D Preferred Stock on March 31, 2026, each share of Series B Preferred Stock automatically converted into 1,000 shares of common stock in the coming weeks. Subject to stockholder approval of the conversion proposal at our upcoming annual meeting, each share of Series C preferred stock will automatically convert into 1,000 shares of common stock and each share of Series D preferred stock will be convertible into 1,000 shares of common stock as part of the merger agreement. We also declared a stock dividend of 0.358 shares of common stock for every share outstanding at the close of business on March 30, 2026. The stock dividend was distributed on April 6, 2026. Turning to Q1 2026 results our reported financial results for the first quarter reflect our legacy healthcare business for the entire period and the inclusion of Corvex's AI platform for the 12 days following the March 19 merger closing in today's press release and in a separate 8K we published this afternoon alongside our March 2026 quarter form 10Q. We also provided pro forma results for the first quarter of 2026 and fiscal year 2025. We believe the disclosure of pro forma financials provides further insight into the combined company's recent operating performance. On a reported basis, our revenue was $510,000 in the first quarter of 2026 and we reported an operating loss of $4.8 million for the period. Again, the reported results only reflect Corvex's AI platform, whereas our legacy healthcare operations were included on a full quarter basis on a pro forma basis which assumes the acquisition closed on January 1st of 2025, our first quarter 2026 revenue was $3.65 million, nearly all of which was generated from Corvex's AI platform. Adjusted pro forma EBITDA for the March quarter, which excludes depreciation, stock compensation expenses, interest expense and taxes, as well as one time merger transaction costs, was a loss of $933,000 at March 31, 2026. Total assets were 604 million, including more than $29 million in cash. With that, I'll turn the call over to Corvex's CEO Jay Crystal.

Jay Crystal (Chief Executive Officer)

Thanks Jay. Good afternoon everyone and thank you for joining Corvex's first earnings call. As a public company, we believe AI is driving a once in a generation transformation in global computing infrastructure. As AI models become larger, more capable and more deeply integrated into enterprise and government workflows, demand for secure, scalable, high performance AI infrastructure is accelerating. Corvex is being built to address this shift. Our platform combines AI infrastructure, AI inference software and confidential computing technology to help customers train customers deploy and secure AI workloads at industrial scale. We believe Corvex represents one of a limited number of publicly traded companies that provide investors with direct exposure to the emerging NEO cloud and AI inference markets. At Corvex, we're building a vertically integrated AI infrastructure platform that's designed to address what we believe are some of the most important requirements emerging in the AI computing market scalable infrastructure capacity, efficient inference delivery, and security for sensitive AI workloads. Our strategy centered on operating across three complementary layers of the AI stack AI infrastructure through our AI factory platform, AI inference through our Token Factory and confidential computing software designed to secure AI workloads and sensitive data. We believe integrating these layers into a unified platform differentiates Corvex from more Commodity Oriented Computing Providers Within AI factories We are primarily focused on serving the needs of AI model labss, hyperscalers, government backed AI initiatives and enterprises. These customer segments increasingly require dedicated production scale computing infrastructure as well as greater speed to deployment and security. We're investing in capabilities intended to support deployments ranging from approximately 2,000 GPUs to hyperscale clusters exceeding 100,000 GPUs. We believe one of our key differentiators is how we seek to accelerate customer access to power and computing capacity through strategic partnerships and over time, a vertically integrated approach that spans data center capacity and computing capacity. At the same time, we're extending beyond traditional bare metal infrastructure through software and orchestration capabilities that support flexible deployment environments including Kubernetes and Slurm. We believe this combination of infrastructure scale, deployment speed, flexibility and operational support well positions Corvex to address the needs of AI factory customers. Our upcoming Token Factory represents the second layer of our strategy and is focused on delivering scalable AI inference capabilities for AI-native companies, enterprise customers and federal organizations. We believe the AI inference market increasingly requires inference platforms capable of delivering reliability, auto-scaling, cost efficiency and enhanced security across environments. Corvex's upcoming Token Factory is designed to provide scalable API access to premium open source and customer provided AI models operated across both Corvex owned infrastructure and third party computing environments. We're also investing into inference optimization technologies intended to improve model performance and economics. We believe this software centric layer creates opportunities for more recurring and asset light revenue over time while also positioning Corvex to grow Token Factory customer relationships into consuming additional layers of our platform. Finally, confidential computing represents the third layer of our strategy and an increasingly important area of differentiation for Corvex. We believe confidential computing will become foundational for regulated enterprises, federal customers and an AI model labs seeking stronger security assurances around sensitive intellectual property, regulated data sets and proprietary inference workloads. Our confidential computing technologies are being designed to secure model weights, inference requests and proprietary training data through a layered security architecture that combines hardware based confidential computing with software that's designed to protect sensitive AI assets throughout deployment and runtime operations. While we intend to license our confidential computing software for use on third party infrastructure in addition to our own, we believe that third party licensing will ultimately serve as a lead source for future Corvex AI factory deployments. We also intend to embed confidential computing directly into our Token Factory in order to strengthen our ability to serve security conscious and regulated customers. Our capabilities in confidential computing further differentiate Corvex from commodity infrastructure providers and more broadly, we believe our strategy is differentiated by our focus on investing in higher value layers of the AI stack rather than participating solely as a provider of commodity compute infrastructure. By combining infrastructure deployment and orchestration capabilities, inference software and confidential computing into a scalable, unified platform, we believe Corvex is positioned to address the evolving performance, economic and security requirements of rapidly growing attractive customer segments while also expanding our opportunities for recurring infrastructure and software revenue over time. While we are early in our development as a public company, we believe the strategic foundation we are building positions Corvex well for the evolving demands of the AI infrastructure market. Given our reported results reflect only a limited operating period during the first quarter, we will not be taking questions on today's call. However, we are excited about the opportunities ahead and and very much look forward to updating investors on our execution and progress in the quarters to come.

Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.