Applied Digital Unveils Fiscal Q1 2026 Financial Results
The Applied Digital Corporation reported its financial results for the first quarter of fiscal year 2026, ending on August 31, 2025. The company specializes in designing and operating high-performance data centers focused on artificial intelligence, cloud services, networking, and blockchain tasks. The results highlight significant revenue growth and operational advancements.
Fiscal Q1 2026 Financial Highlights
- Revenues of $64.2 million, reflecting an 84% increase year-over-year.
- Net loss attributable to common stockholders was $27.8 million, which is a 275% decrease compared to the previous year.
- Loss per common share was reported at $0.11, down from previous losses.
- Adjusted net loss was $7.6 million.
- Adjusted EBITDA reached $0.5 million.
Operational Updates
During the quarter, Applied Digital signed a new lease for 150 megawatts (MW) at its Polaris Forge 1 campus in Ellendale, North Dakota, totaling a lease revenue of approximately $11 billion. This facility is expected to expand significantly, potentially exceeding 1 gigawatt (GW) capacity between 2028 and 2030.
Construction on a new 100 MW building at the same campus is nearing completion, and plans for an additional 150 MW building are underway. Subsequent to the quarter, the company accessed $112.5 million from a preferred equity facility with Macquarie Asset Management and secured another $50 million for the Polaris Forge 2 campus near Harwood, North Dakota.
Future Expansion Plans
The Polaris Forge 2 campus will initially feature 200 MW and is designed for future scaling to 1 GW. High demand from hyperscale customers is anticipated to drive further growth, with substantial lease agreements expected to boost long-term contracted visibility for Applied Digital. The company aims for a target of $1 billion in net operating income (NOI) within five years, supported by its ongoing project finance initiatives and strategic customer leases.
Financial Performance Overview
Overall, total revenues for the quarter were $64.2 million, a notable increase from $34.8 million in the same period a year prior. The company’s cost of revenues surged to $55.6 million, primarily driven by increased expenses linked to tenant fit-out services in the high-performance computing (HPC) hosting segment.
The selling, general, and administrative costs reached $29.2 million, marking a significant rise due to business expansion activities. The challenges faced include an increased net loss attributable to common stockholders compared to previous successful quarters.
Conclusion
With a multi-gigawatt pipeline and strong partnerships, Applied Digital is well-positioned to capitalize on the increasing demand for AI infrastructure. The company’s commitment to sustainable data center practices, combined with its robust growth strategy, underscores its future potential as a key player in the data center REIT sector.
