0001493152-26-026667
SEC filingOperating revenue surged 165% to $10.96M, but rapid expense growth drove a net loss, ahead of the May 2026 de-SPAC merger that injected ~$95.38M.
Boost Run Holdings LLC (the operating entity) reported revenue of $10.96 million for the three months ended March 31, 2026, a 165% increase from $4.14 million in the prior-year period. The growth was driven by higher GPU utilization rates, expansion of customer contracts in the enterprise AI vertical, and incremental pricing adjustments. Gross profit rose to $9.38 million (85.6% margin) from $3.44 million (83.0% margin), reflecting operational efficiencies. However, operating costs and expenses increased 273% to $13.63 million, primarily due to a 244% rise in depreciation and amortization ($4.72 million), a 476% jump in colocation lease cost ($4.67 million), and a 243% increase in selling, general and administrative expenses ($2.66 million). Consequently, the company swung from operating income of $0.48 million to an operating loss of $2.67 million. Net loss was $4.12 million, compared to net income of $0.02 million in Q1 2025, impacted by $1.40 million in interest expense. Boost Run Inc. (the public entity) reported only general and administrative expenses of $51,000 and a net loss of $51,000, reflecting its pre-merger shell status.
As of March 31, 2026, Boost Run Holdings had cash of $13.24 million, up from $9.75 million at December 31, 2025. Total assets surged to $264.10 million from $77.43 million, driven by a large increase in operating lease right-of-use assets ($107.41 million vs $8.83 million) and finance lease right-of-use assets ($94.05 million vs $33.77 million) from new colocation and GPU leases. Total liabilities rose to $259.88 million from $69.30 million, including current debt of $15.36 million (primarily bridge loans). Members' capital declined to $4.22 million from $8.14 million due to the net loss. The company had a working capital deficit of $71.50 million (current assets $30.44 million vs current liabilities $101.94 million). However, subsequent to quarter end, the merger with Willow Lane Acquisition Corp. closed on May 8, 2026, providing approximately $95.38 million in net cash, which was used to repay all outstanding bridge loans and the related party loan, significantly strengthening the balance sheet.
Net cash provided by operating activities was $13.24 million in Q1 2026, compared to $1.26 million in Q1 2025, a 952% increase. This improvement was driven by growth in revenue and favorable working capital changes, particularly a $25.80 million increase in accrued expenses and other liabilities, partially offset by an $8.88 million increase in accounts receivable. Non-cash adjustments included $4.72 million in depreciation and amortization, $0.20 million in unit-based compensation, and $2.54 million in non-cash lease expense. Capital expenditures (primarily GPU acquisitions) were $8.93 million, up from $0.68 million. Free cash flow (CFO minus capex) was approximately $4.30 million, though not explicitly stated. Financing activities provided $6.21 million, mainly from $9.95 million in net bridge loan proceeds, partially offset by $3.72 million in finance lease payments. The merger subsequently eliminated all debt, positioning the company with a clean capital structure and robust liquidity.
Management attributed revenue growth to higher GPU utilization and new customer contracts, with seven new lessees contributing $3.83 million in lease income. Cost increases were driven by expanded operations, including new colocation facilities and finance leases for additional GPU servers. The MD&A notes that the company expects continued growth in GPU-based computing and AI infrastructure demand, but faces risks from component supply constraints, power availability, and macroeconomic headwinds such as inflation and interest rates. The merger with Willow Lane Acquisition Corp. was completed on May 8, 2026, and the company’s Class A common stock and warrants began trading on Nasdaq under symbols BRUN and BRUNW. Proceeds from the merger are expected to support expansion of the GPU infrastructure platform and working capital needs. Management believes the company has sufficient liquidity for at least the next twelve months.
The company operates as a single segment: GPU rental services. Revenue is derived from operating leases of high-performance GPU servers and blockchain rewards. The company uses a lessor accounting model, combining lease and non-lease components. Subsequent to quarter end, the company entered into a Partnership Agreement with minimum purchase commitments of approximately $1.44 billion over five years and a License Agreement with committed fees of $100,000. The merger was accounted for as a reverse recapitalization. Equity-based compensation of $0.20 million was recorded for Class B profit interest units. No stock buybacks or dividends were declared. The company's intangible assets consist solely of IP addresses with indefinite lives, and no impairment was recognized.