Applied Digital (APLD) Earnings Date & Reports

Key Takeaways

• Total revenue reached $258.7 million in fiscal Q4 2026, up 407% year over year and ahead of consensus estimates.
• GAAP net loss attributable to common shareholders was $111.6 million, or $0.39 per share, wider than the prior-year loss of $0.24 per share.
• Adjusted net income was $12.9 million, or $0.04 per diluted share, and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose to $42.4 million from $1.0 million a year earlier.
• Contracted critical IT load reached roughly 1.4 gigawatts (GW) across five campuses, representing about $36 billion in base-term contracted lease revenue.
• The company ended the quarter with about $4.2 billion in cash and roughly $5 billion in total debt after completing several major financing transactions.

Earnings Context and Why It Matters

Applied Digital (APLD) is pivoting from a legacy crypto-mining hosting operator into a builder of large-scale, purpose-built artificial intelligence data centers. Its fiscal fourth quarter, which ended May 31, 2026, marked the first full quarter in which its flagship HPC (high-performance computing) facility at Polaris Forge 1 operated at scale. The results matter because they reveal whether the company can convert its multibillion-dollar lease agreements into realized revenue, cash flow, and operating profit while managing heavy construction and financing costs. For investors, this report is a key test of Applied Digital's execution on a contracted backlog that management has described as among the largest in the AI infrastructure sector.

Reported Results

Applied Digital reported total revenue of $258.7 million for fiscal Q4 2026, a 407% increase from $51.1 million in the year-ago quarter and above the consensus estimate of approximately $240 million. Services revenue was $208.2 million, while data center rental and other revenue totaled $50.6 million.

On a GAAP basis, the company recorded a net loss attributable to common shareholders of $111.6 million, or $0.39 per share, wider than the $0.24 per-share loss in fiscal Q4 2025. The loss primarily reflected elevated selling, general, and administrative (SG&A) expenses of $165.3 million, including $116.8 million in stock-based compensation tied to the separation of its ChronoScale cloud business.

On an adjusted, non-GAAP basis, the company swung to a profit, reporting $12.9 million in adjusted net income, or $0.04 per diluted share, and $42.4 million in adjusted EBITDA, versus $1.0 million a year earlier. Segment results showed the HPC Hosting business generating $203.0 million in revenue and $26.2 million in operating profit, while the Data Center Hosting business contributed $37.3 million in revenue and $12.5 million in operating profit.

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Market Reaction and Investor Sentiment

Sentiment around Applied Digital has been driven less by near-term profitability and more by the pace of its contracted capacity expansion and financing execution. The fiscal Q4 report reinforced that narrative: management disclosed roughly $20 billion in new long-term contracted revenue from a single investment-grade hyperscaler, bringing total base-term contracted lease value to about $36 billion across five campuses. While the wider GAAP loss reflected heavy stock-based compensation rather than operational deterioration, the swing to positive adjusted EBITDA and adjusted net income provided a key proof point that the core data center model is generating operating leverage. Investor focus remained on the company's ability to fund and deliver additional capacity on schedule and on budget.

Forward Outlook and Key Factors to Monitor

Looking ahead, investors should watch several factors tied to Applied Digital's buildout of its AI data center campuses. The company is marketing an additional 1.7 gigawatts of capacity and has said it is in advanced negotiations with two existing investment-grade customers on expansion leases totaling roughly 250 megawatts (MW). If completed, those agreements could lift total capacity to about 1.66 GW and add more than $6 billion in contracted revenue.

Financing remains a central theme. During and shortly after the quarter, Applied Digital completed multiple transactions, including $2.15 billion of 6.75% senior secured notes for Polaris Forge 2, a $300 million bridge facility, and a revolving credit facility of up to $550 million. The rising debt load and interest expense will be closely monitored against the pace of revenue recognition.

Execution risk is another key consideration. Management indicated that all current construction projects are on time and on budget, but power availability and supply-chain capacity remain the principal constraints on growth. Investors will likely track the commissioning of additional buildings at Polaris Forge 1 and progress at the Polaris Forge 2, Polaris Forge 3, and Delta Forge campuses, as well as any changes in market rental rates that could affect future contract pricing.

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