Why it matters
- Applied Digital's revenue rose 322% to $341.9 million in the quarter ended Aug. 31, driven by $262.6 million of high-performance computing hosting revenue, the company said.
- The net loss attributable to common stockholders from continuing operations widened to $221.0 million, or $0.76 a share, from $18.5 million, or $0.07, a year earlier; adjusted EBITDA rose to $64.4 million.
- The company said it has leases for about 1.41 GW of critical IT load worth about $36 billion over their initial terms. Its shares rose about 3% after hours, after a 6% drop in the regular session.
Applied Digital, which builds and leases data centers for artificial intelligence computing, said on Wednesday, Oct. 7, that revenue for its fiscal first quarter rose 322% from a year earlier to $341.9 million. Its net loss widened to $221.0 million, or 76 cents a share, from continuing operations.
The quarter ended Aug. 31, 2026. A year earlier, revenue was $80.9 million and the net loss attributable to common stockholders was $18.5 million, or 7 cents a share, according to the company's earnings release.
How did Applied Digital stock react?
Applied Digital (APLD) shares were at about $24.55 at 4:54 p.m. Eastern time, up about 3.1% from the regular-session close of $23.81, according to Yahoo Finance data. The stock fell 6.0% during Wednesday's session from Tuesday's close of $25.34. After-hours trading is thin and prices can swing.
Key numbers from the quarter
| Fiscal Q1 2027 (ended Aug. 31) | This year | Year earlier |
|---|---|---|
| Total revenue | $341.9 million | $80.9 million |
| Revenue excluding ChronoScale | $300.4 million | $64.2 million |
| Net loss to common stockholders (continuing ops) | $221.0 million | $18.5 million |
| Loss per share (continuing ops) | $0.76 | $0.07 |
| Adjusted net loss per share | $0.01 | $0.03 |
| Adjusted EBITDA | $64.4 million | $0.5 million |
Source: Applied Digital earnings release.
High-performance computing hosting brought in $262.6 million. That included $65.8 million of base rent and $183.5 million of tenant fit-out services, the company said. Its older data center hosting business brought in $37.8 million, about flat with $37.9 million a year earlier.
Including discontinued operations, the net loss was $237.1 million, or 82 cents a share. Applied Digital owns about 96% of ChronoScale, a separately listed cloud computing company whose results are consolidated but excluded from the adjusted figures.
How big is Applied Digital's lease backlog?
Applied Digital said it has leases for about 1.41 gigawatts of critical IT load across five campuses. It said those leases represent about $36 billion of contracted revenue over their initial terms. CoreWeave leases its Polaris Forge 1 campus in North Dakota, and investment-grade hyperscale cloud customers lease the others.
In the quarter, the company signed a 210-megawatt, 15-year lease at its Delta Forge 2 campus with what it called its tier-one investment-grade hyperscaler customer. The company did not name that customer.
Applied Digital expects the delivered critical IT load across its North Dakota campuses to reach 300 megawatts by the end of calendar 2026.
How is the build-out being financed?
The company closed $1.59 billion of 7.000% senior secured notes due 2031. At the end of the quarter it had $3.7 billion of cash, cash equivalents and restricted cash and $6.4 billion of debt, according to the release.
"Our goal is to establish Applied Digital as the category leader," Chief Executive Wes Cummins said in the release. Executives were scheduled to discuss the results on a call at 5 p.m. Eastern time.
The results come as companies borrow heavily to fund AI computing. Earlier on Wednesday, SpaceX was reported to be seeking $40 billion in debt to buy Nvidia chips. Follow more earnings in our companies section and the latest market moves in markets.
Sources
- Applied Digital, Applied Digital Reports Fiscal First Quarter 2027 Results (Form 8-K exhibit, SEC)
- Yahoo Finance, Applied Digital (APLD) quote and price data
