Applied Digital Q4 Earnings Call Highlights

Revenue surged 407% year over year to $258.7 million , while adjusted EBITDA rose to $42.4 million from $1 million. The company still reported a net loss of $111.6 million, driven partly by elevated stock-based compensation. Applied Digital’s contracted AI data center capacity reached 1.41 gigawatts , representing approximately $36 billion in long-term lease value. Management is negotiating an additional 250 megawatts that could add more than $6 billion in contracted revenue. The company secured billions in project financing and ended the quarter with $4.2 billion in cash against $5 billion in debt. Management targets more than 5 gigawatts of capacity by 2032 and expects to reach its $1 billion net operating income run rate in about a year.

Applied Digital NASDAQ: APLD reported fiscal fourth-quarter revenue of $258.7 million for the period ended May 31, 2026, as the company expanded its contracted AI data center capacity and secured financing for additional campuses. Chairman and CEO Wes Cummins said the company signed leases for five campuses during the fiscal year, including three during the past four months. Those agreements produced approximately $36 billion in total contracted long-term lease value, including about $20 billion added during the fourth quarter. Applied Digital said its contracted critical IT load across all campuses reached 1.41 gigawatts.

Cummins said the company recently signed leases for Polaris Forge 1, Polaris Forge 2 and Polaris Forge 3 with the same high investment-grade hyperscale customer. The campuses span three states and two regions. He said two of the campuses each represent about $7.5 billion in base-term contracted lease revenue, while the third adds approximately $5.2 billion, for roughly $20 billion in long-term revenue from that customer.

Total revenue increased 407% from the comparable prior-year quarter, according to CFO Saidal Mohmand. Services revenue was $208.2 million, while data center rental and other revenue totaled $50.6 million. The company’s HPC hosting business generated $203 million of revenue, including $152.4 million from tenant fit-out services, $44.1 million in base rent and $6.5 million in tenant recoveries. Its data center hosting segment, which provides energized space to Bitcoin-mining customers at two North Dakota locations, generated $37.3 million in revenue and $12.5 million in segment operating profit. Applied Digital also consolidated $18.8 million of revenue from ChronoScale, its cloud business that began trading separately on Nasdaq under the ticker CHRN in early May. Applied Digital retains a 96% ownership interest in ChronoScale, but excluded the unit from its non-GAAP results because it now operates as a separate publicly traded company.

The company reported a net loss attributable to common shareholders of $111.6 million, or $0.39 per share. Adjusted net income was $12.9 million, or $0.04 per diluted share. Adjusted EBITDA was $42.4 million, compared with $1 million in the comparative prior-year quarter. SG&A expenses rose to $165.3 million, primarily reflecting $116.8 million in stock-based compensation. Mohmand said that amount included $47.9 million in one-time awards related to the ChronoScale transaction and $65.1 million tied to performance stock units. Net operating income was $39.9 million, representing a 91% margin under the company’s definition of HPC base rental revenue less rental operating expenses, property taxes and insurance.