Highlights

  • In the Q1 FY26Revenue Growth: Total revenues surged 84% YoY to USD 64.2M.
  • Polaris Forge Expansion: Secured 150 MW lease at Polaris Forge 1; Polaris Forge 2 groundbreaking underway.
  • Operational Performance: HPC Hosting contributed USD 26M; Data Center Hosting revenue grew 9% YoY.

Applied Digital Corporation (NASDAQ:APLD) recognized as Best Data Center in the Americas 2025 by Datacloud, providing high-performance, eco-friendly data centers and colocation services for AI, cloud, networking, and blockchain applications

Fiscal First Quarter 2026 Financial Performance

APLD has reported first quarter of the financial year 2026 (Q1 FY26) financial results for the period ending August 31, 2025. Total revenues increased to USD 64.2M, up 84% from USD 34.8M in the prior-year period. The net loss attributable to common stockholders was USD 27.8M, compared to net income of USD 15.9M in Q1 FY25. Net loss per share was USD 0.11, down from net income per share of USD 0.11 last year.

Adjusted net loss for the quarter was USD 7.6M, or USD 0.03 per diluted share, compared to an adjusted net loss of USD 0.8M, or USD 0.01 per share in Q1 FY25. Adjusted EBITDA decreased to USD 0.5M from USD 6.3M in the prior-year period.

Cost of revenues rose to USD 55.6M from USD 22.7M, primarily due to USD 25M related to tenant fit-out services for the HPC Hosting Business. Selling, general, and administrative expenses increased to USD 29.2M from USD 11.0M, driven mainly by stock-based compensation and personnel costs. Interest expense increased to USD 3.9M from USD 3.0M, reflecting higher loan activity. Loss on abandonment of assets was USD 1.8M compared to USD 0.6M in Q1 FY25.

As of August 31, 2025, Applied Digital held USD 114.1M in cash, cash equivalents, and restricted cash, with total debt of USD 687.3M, excluding USD 362.5M raised in financings after quarter-end.

Operational Highlights

Polaris Forge 1 Expansion
Applied Digital finalized a lease with CoreWeave for an additional 150 MW at its Polaris Forge 1 campus in Ellendale, North Dakota, bringing total contracted lease capacity to 400 MW. Total anticipated lease revenue for Polaris Forge 1 is approximately USD 11B, including USD 7B from initial leases executed in May 2025. The 100 MW building is near completion, on schedule and on budget, with tenant fit-out underway, while construction began on the next 150 MW building.

Polaris Forge 2 Development
Subsequent to the quarter, Applied Digital secured USD 50M in funding for the 300 MW Polaris Forge 2 campus near Harwood, North Dakota. Groundbreaking occurred for the initial 200 MW phase, expected to come online in 2026 and reach full capacity in 2027, with provisions for future expansion.

Management Commentary
“We feel this third lease validates our platform and execution, positioning Applied Digital as a trusted strategic partner to the world’s largest technology companies,” said Wes Cummins, Chairman and CEO. “With hyperscalers expected to invest approximately USD 350B into AI deployment this year, we believe we are in a prime position to serve as the modern-day picks and shovels of the intelligence era.”

Other Operational Updates

The HPC Hosting Business contributed USD 26M in revenue during the quarter, with operations expected to ramp up as equipment installation is completed. Revenue from the Data Center Hosting Business increased 9% year-over-year to USD 37.9M, driven by full-capacity operations at the Jamestown and Ellendale facilities. The Cloud Services Business remains under strategic review, with updates to be provided once more information is available.