To capitalize on hyperscale infrastructure demand, RCM is deemphasizing its legacy staffing business.

The company’s Engineering segment, and specifically its Energy Services vertical, is seeing accelerating demand for data center development, entering fiscal 2026 with record backlog. As of the latest available disclosure in the third quarter, the Energy Services backlog exceeded $70 million, up from just $21 million a year ago.1

Management first introduced the data center opportunity in March 2025, describing it as a “rapidly emerging driver of growth for RCM.”2 Two quarters later, when asked about the company’s multiyear preferred partner agreements for data center infrastructure and grid modernization, management expanded:

“I think the surge in spend... is pretty overwhelming. I mean it’s historic without a question. And it’s really hard to find an argument that we’re anything but in the early innings of it… I think that we’re facing a protracted secular bull market.”3

However, during the third quarter conference call, management attempted to temper near-term expectations. They characterized the data center activity as “really kind of incremental to us,” while describing the utility market as the company’s “stronghold.”4

RCM’s unusual decision not to hold a fourth-quarter earnings call has effectively kept the true magnitude of its data center pipeline out of public view. With no further disclosures, who exactly is on the other side of the company’s multiyear preferred partner agreements?

THE UNDISCLOSED INFRASTRUCTURE PARTNER

RCM is currently on a hiring spree for an unnamed “industrial-scale data center construction and operations” client.

In almost all of these listings, RCM uses highly specific, identical phrasing to describe its undisclosed partner:

The description varies only slightly in select postings, with one specific listing characterizing the client as a “U.S.-based leader in large-scale data center development” that is “headquartered in New York, with locations throughout the U.S.”

A cross-examination of active job listings, corporate language, and recent SEC filings confirms this undisclosed partner is Cipher.

First, Cipher’s own job postings use language that mirrors RCM’s unbranded listings word-for-word:

While this verbatim language overlap all but confirms a partnership, the geographic distribution of RCM’s hiring removes any remaining doubt. All of RCM’s data center-related listings target positions based in Denver, CO, Charleston, SC, Colorado City, TX, and New York, NY.

This hiring perfectly maps onto Cipher’s physical footprint. According to Cipher’s latest annual report, the geographic alignment is exact:5

In short, by triangulating the identical project descriptions with matching geographic footprints, the data conclusively points to Cipher partnering with RCM to outsource engineering and staffing requirements for its data center buildout.

THE MEGA-CAP HYPERSCALER TENANTS

Cipher is shifting its core business from bitcoin mining to developing and leasing high-performance computing (HPC) data center campuses for the “world’s top hyperscalers.”6 To reflect this transition, the company rebranded from Cipher Mining to Cipher Digital and started divesting its legacy mining assets.7 8

Since pivoting to HPC data center development, Cipher has signed three industrial-scale lease agreements with hyperscale tenants while retaining 100% ownership of the underlying projects.

• Fluidstack & Google (300 MW | Barber Lake, TX): Cipher executed an initial 10-year colocation agreement with Fluidstack in September 2025 and subsequently expanded it in late November. The finalized deal commits the entire 300 MW of capacity at Cipher’s Barber Lake site, targeting the delivery of 168 MW of critical IT load by September 2026 and an additional 39 MW by January 2027. The agreement guarantees approximately $3.8 billion in initial contracted revenue, with extension options pushing the total potential contract to $9.0 billion. Google is providing a combined $1.7 billion backstop on Fluidstack’s lease obligations to support project-level debt financing.9 10

• Amazon Web Services (300 MW | Black Pearl, TX): A month after the initial Fluidstack deal, Cipher announced a “surprising” 15-year, $5.5 billion lease agreement with AWS. Cipher will deliver the entire 300 MW capacity at its Black Pearl site in two phases beginning in July 2026. The final delivery is targeted for the fourth quarter of 2026, with rent commencing in August 2026.11

• Undisclosed Tenant (New Campus): In March 2026, Cipher executed its third data center lease with an undisclosed tenant, speculated to be either Meta or Microsoft.12 Under the terms of the 15-year agreement, Cipher will develop and deliver a new HPC data center at one of its existing sites.13 This location is believed to be the 100 MW Stingray campus after Cipher CEO Tyler Page said during the last earnings call, referring to the site, that they were “increasingly confident in securing a lease in the near term, having now identified a preferred partner with whom [they] are in advanced lease negotiations,” expecting “the most favorable [lease economics they] have achieved to date.”14

With the first two leases alone, Cipher has secured 600 MW of gross contracted HPC capacity and “is now fully focused on the construction and delivery of Barber Lake and Black Pearl, both of which remain on schedule.”15

Yet, as management said following the initial signing: “We believe this transaction represents the first of several in the HPC space.”16

THE 3.4 GW DEVELOPMENT PIPELINE

Beyond the contracted catalysts at Barber Lake (acquired in September 2024)17 and Black Pearl (acquired in December 2023),18 Cipher has acquired, or secured the rights to, seven additional data center facilities. Upon full energization, the company’s cumulative pipeline and contracted capacity will exceed 3.4 GW.

• Reveille (70 MW | Cotulla, Texas): Acquired in October 2024, this site includes approvals for an initial 70 MW with the potential to expand up to 200 MW. Energization is targeted for 2027.19

• Stingray (100 MW | Andrews, Texas): Acquired in February 2025, this site is fully de-risked with all necessary regulatory approvals and a signed facility extension agreement for up to 100 MW. Power availability is anticipated in the first half of 2026.20 21

• Colchis (1.0 GW | West Texas): In October 2025, Cipher secured a 95% equity ownership of this 1 GW site, targeting energization in 2028.22 23

• Ulysses (200 MW | Ohio): Acquired in December 2025, this is the company’s first site outside of Texas. The facility remains on track to energize in the fourth quarter of 2027.24

• The 1.5 GW Texas Portfolio: Cipher is executing on a trio of 500 MW sites originally optioned in October 2024.25 The company recently exercised its options to acquire the special purpose entity holding the underlying purchase rights to these properties. Combined, these three campuses will add a cumulative 1.5 GW to the pipeline:

  • Milsing (500 MW | East Texas): Option exercised in December 2025. Estimated energization between 2028 and 2029.

  • Mikeska (500 MW | West Texas): Option exercised in February 2026. Estimated energization in 2028.

  • McLennan (500 MW | Central Texas): Option exercised in February 2026. Estimated energization in 2028. The company is currently in the process of exercising its final option to purchase the physical site.26

In short, the company has been on a buying spree since December 2023, with the addition of its latest site bringing Cipher’s pipeline and contracted capacity to a total of more than 3.4 GW across nine sites.

At the Needham Growth Conference in January 2026, the company confirmed it is currently marketing 370 MW of capacity for its Ulysses, Stingray, and Reveille sites, adding that “multiple hyperscalers are interested in several of our sites.”27

It is worth noting that following the February 2026 sale of its stake in the Alborz, Bear, and Chief joint ventures, the Odessa facility is now the company's only active bitcoin mining operation.28

THE $22.7 BILLION DATA CENTER BUILDOUT

Industry benchmarks commonly place Tier III data center development costs at roughly $8 million to $12 million per MW of IT load,29 though AI-optimized facilities can reach as high as $20 million or more due to advanced liquid cooling requirements and higher power densities.30

As Peter Sacco, founder and CEO of PTS Data Center Solutions, said: “If you’re [building] a hyperscale data center, you’re building in the range of about $10 million to $12 million per megawatt.”31

For Cipher, this range has been explicitly quantified. The company previously disclosed estimated project costs of $9 million to $11 million per MW of critical IT load for its Barber Lake site, later refining that figure to $9 million to $10 million under the upsized agreement.

The 300 MW Barber Lake site carries 207 MW of critical IT load. Based on guided metrics, development costs for this single project range from $1.8 billion to $2.1 billion. As Page recently put it, Barber Lake costs the equivalent of a “brand new giant Manhattan skyscraper.”32

The site is located in Colorado City, Texas. RCM is currently hiring for a role based in that exact location, confirming the company is already involved in the site’s development.33

Yet, Barber Lake accounts for less than 10% of Cipher’s total contracted and pipeline capacity. Extrapolating these figures to its entire portfolio translates to an aggregate pipeline buildout cost of $21.5 billion to $23.9 billion. In Page’s words, “imagine if you were building like three Manhattan skyscrapers simultaneously.”

The question now is exactly where RCM fits into this multibillion-dollar data center buildout. Commentary from the third quarter provided the answer:34

Considering the first incremental core client has already been landed, that “exciting time” is now underway. And the pipeline from this single client alone equates to nine “brand new giant Manhattan skyscrapers.”

For ideas, please contact info@byronstreetresearch.com.

DISCLAIMER

INVESTOR DISCLOSURES

This material is not a product of a registered investment advisor (RIA) and should not be regarded as research material, investment advice, or a recommendation. This report is provided for informational purposes only and does not constitute an offer or solicitation to buy or sell any securities in any jurisdiction, nor should it be deemed a personal recommendation. Nothing in this report constitutes legal, accounting, or tax advice, or is a representation that any investment or strategy is suitable or appropriate to individual circumstances or otherwise constitutes a personal recommendation. Past performance is not necessarily indicative of future results, future returns are not guaranteed, and loss of principal may occur.

All facts and statistical data have been obtained from sources believed to be reliable, but are not warranted as accurate or complete. All projections, estimates, and expressions of opinion reflect the judgment of the author as of the date hereof and are subject to change without notice. Links to third-party websites are provided for information purposes only. The author is not responsible for the content of any third-party website or for the collection or use of information regarding any website’s users or members. The author accepts no legal responsibility for any errors or omissions, or for losses resulting from investment decisions based on the content of this report.

This report is not directed to, or intended for distribution to or use by, any person or entity in any jurisdiction where such distribution, publication, availability, or use would be prohibited by law or regulation. The author has not authorized financial intermediaries to use or distribute this material unless such use and distribution is made in accordance with applicable law and regulation. Financial intermediaries are required to satisfy themselves that the information in this material is appropriate for any person to whom they provide this material in view of that person’s circumstances and purpose. The author shall not be liable for, and accepts no liability for, the use or misuse of this material by any such financial intermediary.

PROPRIETARY RIGHTS NOTICE

By accepting a copy of this report, you acknowledge and agree as follows:

This report and its contents are the exclusive property of Byron Street Research, except as otherwise expressly stated, and are protected by applicable copyright, trade secret, and other intellectual property laws, which provide for civil and criminal penalties for copyright infringement. The names of other companies and third-party products or services mentioned in this report may be the copyrights, trademarks, or service marks of their respective owners and are protected by applicable law. No intellectual property may be used for any purpose, including use on other materials, presentations, domain names, or metatags, without the prior express written permission of Byron Street Research or the owner of such rights.

This report is confidential and provided to subscribers of Byron Street Research solely for personal, noncommercial use. Except as expressly authorized in writing by Byron Street Research, it may not be copied, reproduced, transmitted, sold, displayed, distributed, published, broadcast, circulated, modified, disseminated, or otherwise commercially exploited in any form or by any means. This report and its contents may not be reproduced, used, or permitted to be used by others (i) for any unlawful purpose; (ii) to create derivative works; (iii) in any software program, including artificial intelligence technologies capable of generating derivative works in a similar style or genre, unless otherwise expressly agreed to in writing by Byron Street Research.

© 2026 Byron Street Research. All rights reserved.

Disclaimer: I am long $VTSI at the time of publication and may change my position at any time. Paid subscribers received early access to this report and were notified in advance via email. See full disclosures below.

Until 2018, VirTra focused almost exclusively on training simulators for police departments.

That strategy shifted when founder Bob Ferris started adapting the company’s technology stack for the military, mirroring his post-9/11 pivot from the entertainment industry to law enforcement.1

To execute the expansion, VirTra brought on John Givens, a military simulation expert who sold his previous company, Bohemia Interactive Simulations (BISim), to BAE Systems for $200 million in 2022.2 3 4 Appointed sole CEO the following year, Givens inherited a company that couldn't even fulfill its own orders.5

"It was horrible,” Givens said. “I came in and we had customers that hadn't received their orders for two years. The average was 12 to 14 months. [Now it's] four to seven days.”

“Backlog to bookings used to be 95% backlog and 5% bookings,” he added. Now, “the ratio should be... 80% bookings and 20% backlog.”6

Instead, VirTra exited 2025 with a record $25.6 million backlog, just shy of its $26.7 million in total bookings. Severe federal funding delays trapped those orders in the backlog, temporarily freezing the company’s revenue cycle.

Those budgetary pressures are now easing as fiscal 2025 funding, approved in prior periods, is finally released. Just last month, several grant programs reopened, including the Justice Assistance Grant (JAG), the Justice Department’s largest funding source for police equipment and training.7

THE $22 BILLION FLAGSHIP SIMULATION PROGRAM

Instead of relying on lower dollar awards from a fragmented market of tens of thousands of law enforcement agencies, VirTra is now competing for multimillion-dollar defense contracts in a single military hub in Orlando, Florida.

The military’s flagship simulation program is the Integrated Visual Augmentation System (IVAS), an initiative developed to improve the combat readiness of soldiers in a synthetic training environment.

The Army launched a two-year prototyping effort in September 2018, signing an agreement the following month for Microsoft to adapt its commercial HoloLens 2 augmented-reality goggles for military combat and training use.8

After nearly two years of development, the Army awarded Microsoft a base five-year contract to produce a militarized version of the headset, including a five-year extension option and a potential agreement ceiling of $21.88 billion.9

Early prototypes, however, failed in the rain, forcing the Army to push the timeline into fiscal 2022.10

By late 2022, operational tests exposed several hardware and software deficiencies. Soldiers reported “mission-affecting physical impairments,” including headaches, eyestrain, and nausea, prompting the Army to renegotiate the contract.11 12 “The devices would have gotten us killed,” one tester said.13

During follow-on efforts to redesign the prototypes, Anduril Industries took over the stalled project in February 2025, assuming oversight of production, future development of hardware and software, and delivery timelines, while retaining Microsoft Azure as its preferred cloud infrastructure.14

Around that time, the Army issued a new solicitation for the Soldier Borne Mission Command (SBMC), explicitly seeking technologies that mitigate problems like visual discomfort and nausea. That program effectively supersedes IVAS.15

In September 2025, the Army awarded Anduril and Rivet Industries more than $350 million in contracts for a phase-one prototyping period.16 17 The agreement requires prime contractors to supply sample hardware for testing roughly seven months post-award, placing the delivery window this month.18 Anduril founder Palmer Luckey said the first “scaled delivery” under the new agreement is expected in 2027.19

Unlike the Microsoft-led IVAS, SBMC is a multi-vendor, multi-service initiative. “We told the government... we actually think you should have multiple vendors, and you should have multiple different types of hardware systems,” Luckey said.

Fourteen industry partners are already part of Anduril’s software architecture, and the Army continues to add prime contractors to the roster. Last month, Elbit Systems secured a $120.5 million contract to develop a helmet-mounted SBMC system,20 followed three days later by a 10-year, $20 billion award to Anduril to consolidate current and future commercial solutions.21

Among Anduril’s defense contracts, IVAS accounts for the vast majority of its total potential awards.22

Long story short, the multi-year wait through delays and funding freezes is finally over.

During its earnings call three weeks ago, Kopin Corporation (KOPN) said: “SBMC, formerly known as IVAS, the $22 billion Army program now under Anduril, continues to progress prime contractor selections and critical technology acquisition areas and wins are expected.”23

VirTra is already embedded in the ecosystem. In April 2024, the company secured a $5.9 million order to integrate its recoil hardware into Microsoft’s original IVAS prototypes, a deal management described as a “continuation in VirTra’s engagement with the IVAS program.”24

To secure this win, VirTra acquired the patent portfolio from Tiberius Technology in February 2019, noting the target’s drop-in recoil patents “could perfectly match” future military needs.25 26 That intellectual property has since grown with specialized patent awards up to last month.27 28

After completing its final IVAS development phase 42 days ahead of schedule, the Army skipped further soldier assessments due to the system’s “outstanding performance.” Management called the program’s shift to Anduril “a significant positive development,” noting the company is now testing recoil kits for the final prototypes to secure “future production-stage opportunities.”29

VirTra has previously noted the military is “looking at buying thousands and thousands of recoil kits.”30 Yet because of Microsoft-related delays, the IVAS program burned through just 6% of its massive contract ceiling.31

Now, the math resets.

If the SBMC program reaches its predecessor’s funding ceilings and VirTra continues as the recoil hardware provider, the company’s potential pipeline from SBMC alone exceeds $90 million.

THE $50 MILLION PRIME CATALYST

After entering the military market as a subcontractor, VirTra is now targeting federal awards as a prime contractor. Management recently confirmed they are bidding as the prime on “larger contracts,” noting “there’s quite a few of them in all different branches of the service.”32

One such initiative is the Soldier Virtual Trainer (SVT) system.

The Army Contracting Command in Orlando (ACC-Orlando) is currently conducting market research to find capabilities that meet the SVT requirements. According to military documents, the SVT will replace legacy training systems by combining Weapons Skills Development, Joint Fires Training, and Use of Force capabilities in one single system.33

ACC-Orlando hosts monthly briefings to update industry partners on procurement timelines. During a January 2026 session, the agency valued the SVT program at an estimated $50 million, with funding secured through 2028. Officials initially projected a formal solicitation for the second quarter of fiscal 2026, followed by a contract award in the third quarter.34

A month later, the Army adjusted the expected award date to the second half of the fiscal year and defined the period of performance as a one-year base with four-year options. Because the federal government calendar ends on September 30, that places the target window for the $50 million contract between April and September of this year.35

The Army is already soliciting early SVT-related contracts. In February, ACC-Orlando issued a solicitation to develop a virtual marksmanship simulator compatible with Next Generation Squad Weapons (NGSW) to accelerate component development. Responses are due in just two days, on April 15.36

VirTra has already proven it can answer the call. Last fall, the company gave an invited demonstration of its portable V-100 simulator to an Army acquisition office that works directly with ACC-Orlando, claiming the technology “exceeded requirements.” The demo was configured to address the three SVT target capabilities: Weapons Skills Development, Joint Fires Training, and Use of Force.37

The V-100 simulator runs on Virtual Battlespace 4 (VBS4), the Army’s chosen virtual environment since July 2025. That software is provided by BISim, the company Givens founded.38 39

VirTra hosted the demonstration at its new facility in Orlando, the capital of military simulation training.40 The building includes simulation demonstration rooms for visiting military clients and sits just a three-minute drive from ACC-Orlando headquarters.41

Givens has said he was brought into VirTra to help scale the military division and secure an Orlando footprint, restructuring operations so he would be “comfortable and proud bringing [his] customers to the company.”42

Management has explicitly quantified the upside of those prospective customers. During a recent earnings call, Givens stated that securing just one or two of these military contracts “could be one-third of VirTra’s earnings in a year. And that’s what we’re targeting.”43

That target extends far beyond a single branch.

Management confirmed “active programs and evaluations are underway across the Army, Navy, and Marine Corps.”44 All these branches house their simulation and training program offices in the same modeling, simulation, and training (MS&T) community, known as Team Orlando. BISim is headquartered right next door.45

Givens has made his ambitions clear: ”In the next couple years, my goal is a $200 million company.”46

He achieved that exact valuation with BISim.

As federal funding unfreezes, the Army pipeline advances, and other military branches deploy their simulation budgets, the catalysts are in place for him to do it again.

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DISCLAIMER

INVESTOR DISCLOSURES

This material is not a product of a registered investment advisor (RIA) and should not be regarded as research material, investment advice, or a recommendation. This report is provided for informational purposes only and does not constitute an offer or solicitation to buy or sell any securities in any jurisdiction, nor should it be deemed a personal recommendation. Nothing in this report constitutes legal, accounting, or tax advice, or is a representation that any investment or strategy is suitable or appropriate to individual circumstances or otherwise constitutes a personal recommendation. Past performance is not necessarily indicative of future results, future returns are not guaranteed, and loss of principal may occur.

All facts and statistical data have been obtained from sources believed to be reliable, but are not warranted as accurate or complete. All projections, estimates, and expressions of opinion reflect the judgment of the author as of the date hereof and are subject to change without notice. Links to third-party websites are provided for information purposes only. The author is not responsible for the content of any third-party website or for the collection or use of information regarding any website’s users or members. The author accepts no legal responsibility for any errors or omissions, or for losses resulting from investment decisions based on the content of this report.

This report is not directed to, or intended for distribution to or use by, any person or entity in any jurisdiction where such distribution, publication, availability, or use would be prohibited by law or regulation. The author has not authorized financial intermediaries to use or distribute this material unless such use and distribution is made in accordance with applicable law and regulation. Financial intermediaries are required to satisfy themselves that the information in this material is appropriate for any person to whom they provide this material in view of that person’s circumstances and purpose. The author shall not be liable for, and accepts no liability for, the use or misuse of this material by any such financial intermediary.

PROPRIETARY RIGHTS NOTICE

By accepting a copy of this report, you acknowledge and agree as follows:

This report and its contents are the exclusive property of Byron Street Research, except as otherwise expressly stated, and are protected by applicable copyright, trade secret, and other intellectual property laws, which provide for civil and criminal penalties for copyright infringement. The names of other companies and third-party products or services mentioned in this report may be the copyrights, trademarks, or service marks of their respective owners and are protected by applicable law. No intellectual property may be used for any purpose, including use on other materials, presentations, domain names, or metatags, without the prior express written permission of Byron Street Research or the owner of such rights.

This report is confidential and provided to subscribers of Byron Street Research solely for personal, noncommercial use. Except as expressly authorized in writing by Byron Street Research, it may not be copied, reproduced, transmitted, sold, displayed, distributed, published, broadcast, circulated, modified, disseminated, or otherwise commercially exploited in any form or by any means. This report and its contents may not be reproduced, used, or permitted to be used by others (i) for any unlawful purpose; (ii) to create derivative works; (iii) in any software program, including artificial intelligence technologies capable of generating derivative works in a similar style or genre, unless otherwise expressly agreed to in writing by Byron Street Research.

© 2026 Byron Street Research. All rights reserved.

Disclaimer: I am long $WSTL at the time of publication and may change my position at any time. Paid subscribers received early access to this report. See full disclosures below.

For more than two decades, however, Westell did nothing but destroy shareholder value.

That changed in September 2019, when it appointed Tim Duitsman as CEO.1 Within two months, he approved a restructuring plan, reducing headcount and narrowing the product focus around remote monitoring.2 Since then, the company has posted positive net income in each of the past four years, while holding almost two-thirds of its market cap in cash.

The real inflection came in early 2025, as demand for 5G and rural broadband equipment finally picked up, with Westell disclosing in its March 2025 annual report “a significant backlog in excess of $25 million, primarily in the [Intelligent Site Management (ISM) segment], that is expected to ship over the next two to three quarters.”3

However, one of Duitsman’s cost-cutting measures was a voluntary Nasdaq delisting.

After deregistering with the SEC in 2020, the company went “dark,” operating in the shadow of the OTC market.4 It has since adopted restrictive investor relations policies, with no earnings calls and minimal engagement with investors. As a result, market participants have been unable to determine whether the backlog has been depleted or if new contracts are replenishing it.

The limited investor write-ups on Westell all point to the same uncertainty.

“What’s driving the growth in the segment? I don’t have a great answer… there are very few disclosures put out by management,” Halvio Capital wrote in February 2026, adding that until there is better clarity on “1) why the business has inflected and 2) if that growth is sustainable or not, it’s a smaller position for now.”5

Deep Sail Capital, in a November 2025 note, said “we don’t know if the last two quarters are one-offs or if they will continue going forward. [...] Westell is an extremely hard company to underwrite due to [its] lack of SEC filings and reluctance to speak to investors.”6

“Now, the big question is how much of this demand is cyclical and how much of it is structural. I’ve spent time digging into this and, honestly, couldn’t come up with a good answer,” The Mikro Kap said in August 2025. “Even [an investor] who recently spoke with the CEO didn’t come away with much more clarity,” he concluded.7

CONTRACTS HIDDEN IN PLAIN SIGHT

The pandemic triggered a wave of state-level broadband investment. The largest initiative at the time was Senate Bill 156 in California, signed into law by Governor Gavin Newsom in July 2021. The legislation allocated $6 billion to the state’s multi-year Broadband for All program, including $3.25 billion for the Middle-Mile Broadband Initiative (MMBI). The 2022-23 state budget added a further $550 million.8

The California Department of Technology (CDT) divided the Middle-Mile Broadband Network (MMBN) into five regions, with the California Department of Transportation (Caltrans) executing a Job Order Contracting (JOC) master agreement for each. Together, the five regions cover 8,185.1 miles of network infrastructure, currently in pre-construction and installation statuses.9

Procurement is now underway, with Westell among the hardware vendors. On February 5, 2026, CDT issued an RFQ for IT equipment under the MMBI, “requesting 128 Westell RMX-4300, and associated gear, to support 128 Huts (MMBN huts, excluding D395) and one (1) year of Premium Westell 24x7 service and support.” Bids were due by February 18, 2026.10

The solicitation requires all 128 Westell RMX-4300 units to be delivered to HP Communications’ headquarters in Corona, CA, with no partial shipments accepted. As Caltrans records show, HP Communications is the prime contractor for both Regions 3 and 4 of the MMBN.11

In September 2024, American Dark Fiber (ADF) announced a joint-build partnership with CDT covering more than 380 miles. In April 2025, it expanded the partnership with an additional 496.96 miles, following a prior award of 400.09 miles in August 2024.12 13 The ADF buildout includes 128 total network huts.14

The CDT’s procurement of 128 Westell RMX-4300 units points to a one-to-one match with the 128 network huts under construction by ADF. HP Communications has also worked with ADF on several fiber projects, including the South Bay Fiber Network (SBFN) in Los Angeles County.15

In short, the contract covers just 897.05 miles of an 8,185.1-mile network in two out of five regions and only the middle-mile portion of the Broadband for All initiative. As the state moves beyond pre-construction and installation on the remaining miles, additional procurement phases are likely, including for Westell RMX-4300 units.

FROM STATE BUILDOUT TO FEDERAL SCALE

While the $6 billion Broadband for All initiative was the largest state-level program at the time of its passage, the bipartisan Infrastructure Investment and Jobs Act (IIJA), passed later in 2021, included a $65 billion investment in broadband infrastructure throughout the United States.16 The largest program funded by the IIJA is the $42.45 billion Broadband Equity, Access, and Deployment (BEAD) grant.17

In June 2023, the National Telecommunications and Information Administration (NTIA) announced allocation amounts for all 50 states, Washington, D.C., and five territories.18 For example, California has been allocated about $1.86 billion under BEAD, based on its share of unserved locations nationwide.19 Governor Newsom designated the California Public Utilities Commission (CPUC) to receive and administer California’s allotted funds under BEAD.20

In February 2024, the U.S. Department of Commerce issued a waiver of certain Build America, Buy America (BABA) requirements for the BEAD program to prevent foreign manufacturers from monopolizing federally funded subsidies. As a result, prime contractors using BEAD funds must source infrastructure hardware that meets domestic manufacturing standards.21

To enforce compliance, the NTIA created a self-certification framework for manufacturers, with the Department of Commerce publishing a regularly updated list of approved vendors.22 Under this framework, subject to fine or imprisonment, Westell has certified its products as BABA-compliant, meeting the domestic manufacturing requirements for BEAD-funded projects.23

BEAD funding has just started to be disbursed, with Louisiana becoming the first state to distribute BEAD infrastructure dollars to internet service providers as part of the program’s initial 10% payment in February 2026.24 With the CPUC overseeing both the last-mile segment of the Broadband for All initiative and BEAD funding, the setup mirrors the MMBI, but at a federally funded scale.25

Beyond direct BEAD-related awards in California, Westell may have indirect exposure to other states through its partnership with Tilson, the only partnership disclosed since Duitsman’s appointment.26 Under the agreement, Westell supplies remote monitoring hardware, while Tilson integrates those systems into its Network Operations Center (NOC).27

Tilson has already participated in BEAD-related planning initiatives in multiple states. In West Virginia, which has been allocated $1.2 billion under the program, Tilson collaborated with the state’s broadband office in developing and administering its Five-Year Action Plan, where it is identified as a contracted partner for broadband consulting services.28

In Michigan, Guidehouse is the prime contractor under Contract 220000000125, providing consulting services to the state. Within the BEAD statement of work, Tilson is identified as a subcontractor, allocated approximately 19% of the total contract value to provide compliance support for Michigan’s BEAD program. The contract further describes Tilson as the prime’s “preferred partner,” noting the two “have supported nearly 20 states/territories in BEAD planning and implementation.”29

As BEAD funding is disbursed in more states, Westell’s solutions could be integrated with Tilson’s at later network deployment stages. Given Tilson’s role in BEAD planning and implementation and Westell’s integration into its network operations and infrastructure monitoring solutions, the two may overlap on certain projects, even if Westell is commercially embedded rather than publicly disclosed.

WHAT ARE THEY HIRING FOR?

Apart from public-sector broadband initiatives, hiring data shows a parallel private-sector upgrade cycle, with Westell systems embedded in the expansion of major commercial 5G networks. One such multi-state infrastructure project is underway in the American Midwest along the Indiana-Michigan-Ohio corridor.

TEKsystems, an IT staffing firm, is hiring a cell site technician in Indianapolis, Indiana “to support a major wireless network across Williams County.” The role includes integrating and providing alarming support for Westell systems, coordinating with vendors, primarily Ericsson, and managing projects ranging from new builds to complex system migrations.30

Similar roles in Fort Wayne are explicitly tied to Verizon’s wireless network,31 including a position titled “Verizon Cell Site Commission and Integration Technician.”32 These roles align with Verizon’s $8.3 billion multi-year agreement with Ericsson signed in 2021 to accelerate its nationwide 5G deployment.33

Verizon also has a documented history with Westell. According to a former sales director who managed the account on the West Coast, orders were typically “north of $2 million.”34

Other job listings point directly to Westell equipment in the field. One company was recently hiring for a field manager in Allen, Texas to “oversee field installations of Westell site monitors” and integrate them with Verizon’s monitoring platforms,35 while another is looking for a field technician in Lexington, Kentucky with experience in Ericsson integration, Nokia routers, and Westell alarming.36

The Verizon 5G network upgrades don’t stop there. In August 2025, a separate recruiter was hiring experienced field technicians in Tennessee and North Carolina “to support Alarm Monitoring Unit (AMU – SiteBoss/Westell) installation and migration at Verizon macro cell sites.”37

In a recent expert call, a telecom professional familiar with tower deployments said remote monitoring systems are still being rolled out. “Not all sites have it… they’re doing as much as possible,” the person said, adding that “a few places may not have it… at that point, they’re going to have Westell to deploy also in that environment.”

Against this backdrop, Westell itself is also hiring. The company is looking for a demand manager to “monitor incoming sales orders daily” and ensure “customer demand is met efficiently,” pointing to sustained order flow from both public and private broadband deployments.38

If demand was one-off, what are they hiring for?

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Until now, I’ve mostly experimented with concise research notes. Four pages, sometimes even one-pagers, following the adage that a good investment memo should fit on the back of a napkin. In theory, I still believe that. In practice, those shorter write-ups, especially when published online from a pseudonymous account, rarely build the level of conviction I’m aiming for with this report.

This is not simply a quick pitch or a concise review. It’s a 60+ page, 20,000+ word deep dive with 100+ exhibits and 300+ references. From methods to systematically identify business partners to a detailed list of licensees, every datapoint can be independently verified and reproduced. What most research notes call a thesis is simply the starting point here. The rest is pure intel.

In short, after reading it, there should be no need for further research. You either take it or leave it. Ironically, after spending years arguing against lengthy book reports, this one has ended up in the top ten by word count in Yellowbrick’s database. But as the stock failed to catch up with its full potential, I felt a proper deep dive was needed, not just to reproduce what’s already known, but to connect the dots and expose the full picture.

I first came across NURS in April 2025. The company had just hit its trough following an unexpected LIFE offering. At the time, there was little tangible evidence that management’s plan would work, and the stock was trading in the low $1s. About a month later, at $1.58, I pitched it, noting: “I’m not just projecting this to be my new multibagger. I’m absolutely sure it will be.”

Some of my contacts told me they had never heard me that confident before, and weren’t sure what it would take for me to feel that way again. The truth is, that level of conviction hasn’t faded. If anything, it has grown. The margin of safety was so wide that even after lowering AOV expectations and starting from a lower margin base, the stock is still cheap despite its move into the $2-5 range.

Part of the reason is the industry itself. Digital healthcare is evolving so quickly that writing this report felt like building a plane while flying it. As with any booming sector, bad actors inevitably show up. It’s not surprising that NURS is met with skepticism. The goal of this report is to help those sitting on the sidelines close the conviction gap that’s keeping them from acting by providing intel found nowhere else.

Importantly, NURS is no longer just a story. It’s a real business, with real partners, real customers, and real revenue, and its model is getting stronger with every month that passes by. As the market moves past prior communication missteps, skepticism fades, and management continues to execute with mathematical precision, I struggle to see a path where this company is not acquired at multiples of today’s valuation.

Last time, I signed off with a quote from Shane: “We’ll continue doing our best, and we’re hoping that we all can celebrate at the end of 2025.” I added: “Let’s make sure we don’t miss that celebration!” We didn’t. This time, I’ll quote Shafin, who said the team has been “working so one day you’re dining on Kobe with truffle mash, wagyu gravy, and a side of generational wealth.” Rendezvous for wagyu next year!

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