Financial Characteristics
Industry Analysis
March 29, 2026
Profitability benchmarks (Gross Margin ~92%, EBITDA ~85%, Net Profit ~31%), cost structure, payment terms, capital returns (IRR 28-32%), price erosion for 1for.ai BTM hydro GPU infrastructure
~92%
Gross Margin
Structural BTM Advantage (EBITDA ~85%)
Behind-the-meter hydro eliminates electricity cost — the industry’s primary OPEX driver. 1for.ai operates at $0 energy cost vs. 30–50% of OPEX for standard GPU operators.
Industry Gross: 40–60%
→
1for.ai: ~92%
Profitability Benchmarks & Cost Composition
Margin Benchmarks
Gross MarginIndustry 40–60% · 1for.ai ~92%
EBITDA MarginIndustry 20–40% · 1for.ai ~85%
Operating MarginIndustry 15–35% · 1for.ai ~36%
Net Profit MarginIndustry 10–25% · 1for.ai ~31%
Industry range
1for.ai
Cost Structure — 1for.ai Tech COGS $855K/yr
$0
electricity
NVIDIA Maintenance40%
Insurance + Connectivity18.5%
Software & Licensing15%
Remote NOC12%
Electricity (BTM)0%
Fixed / Variable split~95% / ~5%
Depreciation (non-cash)$6.4M/yr
Payment Terms & Capital Returns
Credit & Payment Structure
Track 1 PPU
+ deposit
Track 2 Res.
25–50% up
Track 3 Pvt.
~$2M buffer
Sovereign
WC risk
Early payment discount1–2% / Net 10
No inventory → no trade payables cycleCCC ≤ 0
Capital Return Metrics
Industry IRR
12–20%
data center / GPU infra
1for.ai IRR
28–32%
10-year project
MOIC (10yr)~2.5x
Payback period~3.5 yr
Industry payback4–7 yr
WACC15%
Georgia tax rate15% (0% VZ export)
Price Erosion, Working Capital & Channel Margins
GPU Price Erosion p.a.
Track 1 PPU
–10%
Track 2 Res.
–8%
Track 3 Pvt.
–5%
Industry avg
8–15%
Working Capital Cycle
Hardware procurement lead6–18 mo.
Receivables (actual)20–45 days
Cash conversion cycle≤ 0 (prepay)
GPU = CAPEX not COGS7yr depr.
WC risk: sovereign clientsNet 60–120
Channel Margin Structure
Direct Enterprise (primary)0% fee
Reseller / VAR5–15% ARR
Sales commission3–8% TCV
Hyperscaler Marketplace3–10% fee
1for.ai modelDirect only
