Applied Digital reported second-quarter revenue above Wall Street estimates on Wednesday, as the data center operator benefited from strong demand for its large-scale facilities for artificial intelli... ...

Applied Digital Corp. (NASDAQ:APLD) shares climbed in Wednesday's extended trading after the company released its second quarter earnings report, beating estimates on the top and bottom lines. Here's a look at the key figures from the quarter. APLD stock is moving. Watch the price action here.The Details: Applied Digital reported quarterly earnings of zero cents per share, which beat the analyst consensus estimate for a loss of 10 cents.Quarterly revenue came in at $126.59 million, which beat the Street est ...

Financial Performance - Revenues for the fiscal second quarter 2026 were $126.6 million, up 250% from $36.2 million in the prior year comparable period[6] - Net loss attributable to common stockholders was $31.2 million, or $0.11 per share, down 76% from a net loss of $129.0 million, or $0.61 per share, in the prior year[31] - Adjusted EBITDA for the fiscal second quarter 2026 was $20.2 million, compared to $6.1 million in the prior year[32] - Total revenue for the three months ended November 30, 2025, was $126.6 million, a significant increase from $36.2 million in the same period last year, representing a growth of 250%[52] - The company reported a net loss of $14.5 million for the three months ended November 30, 2025, compared to a net loss of $138.7 million in the same period last year, indicating a reduction in losses[52] - Operating loss for the three months ended November 30, 2025, was $31.0 million, compared to an operating loss of $12.8 million in the same period last year[52] - Basic and diluted net loss per share attributable to common stockholders for the three months ended November 30, 2025, was $(0.07), an improvement from $(0.66) in the same period last year[52] - Net loss from continuing operations (GAAP) decreased to $52,810 thousand for the six months ended November 30, 2025, from a loss of $112,451 thousand in the same period of 2024, indicating a reduction of 53%[56] - Adjusted net income from continuing operations (Non-GAAP) was a loss of $7,455 thousand for the six months ended November 30, 2025, compared to a loss of $2,310 thousand in the same period of 2024[56] - EBITDA (Non-GAAP) for the six months ended November 30, 2025, was a loss of $24,617 thousand, an improvement from a loss of $97,707 thousand in the same period of 2024[57] Operational Highlights - The Company achieved Ready-for-Service at Polaris Forge 1, delivering 100 MW on schedule, marking a significant milestone in the 400 MW AI Factory buildout for CoreWeave[7] - A 15-year lease was signed with a U.S. based investment-grade hyperscaler for 200 MW at Polaris Forge 2, expected to generate approximately $5 billion in revenue[7] - Total leased capacity now stands at 600 MW, with aggregate prospective lease revenue of approximately $16 billion[8] - The HPC Hosting Business generated $85.0 million in revenue for the quarter, with a second 150 MW data center expected to come online in 2026[19] - Applied Digital Corporation was named Best Data Center in the Americas 2025 by Datacloud, highlighting its leadership in high-performance data center solutions[36] - The company focuses on artificial intelligence, cloud, networking, and blockchain workloads, utilizing proprietary waterless cooling technology[36] - Applied Digital aims to create economic opportunities in underserved communities through its Polaris Forge AI Factory model[36] Capital and Financing - The Company completed a $2.35 billion private offering of senior secured notes, with proceeds allocated to construction and debt repayment[7] - As of November 30, 2025, the Company held approximately $2.3 billion in cash and cash equivalents, with total assets of $5.2 billion and liabilities of $3.2 billion[12] - Cash and cash equivalents increased to $1.9 billion as of November 30, 2025, up from $41.6 million at May 31, 2025[50] - Total assets reached $5.2 billion as of November 30, 2025, compared to $1.9 billion at May 31, 2025, reflecting a growth of 177%[50] - Long-term debt increased to $2.6 billion as of November 30, 2025, from $677.8 million at May 31, 2025[50] - The company reported cash flow used in operating activities of $97.9 million for the six months ended November 30, 2025, compared to $128.2 million in the same period last year[53] - Cash flow provided by financing activities was $3.1 billion for the six months ended November 30, 2025, compared to $618.6 million in the same period last year[53] - The company reported a cash increase of $2,172,448 thousand for the six months ended November 30, 2025, compared to an increase of $282,891 thousand in the same period of 2024[54] Strategic Initiatives - The Company plans to spin out Applied Digital Cloud and merge it with EKSO Bionics to form ChronoScale, retaining over 80% ownership of the combined entity[13] - The company is actively pursuing a proposed Business Combination with EKSO, which is expected to enhance its market position and operational capabilities[37] - The company emphasizes the importance of lease agreements and data center campus development in its business strategy[41] - Applied Digital is focused on raising additional capital to fund ongoing data center construction and operations, which is critical for its growth strategy[41] Non-GAAP Financial Measures - The company is committed to providing non-GAAP financial measures to give investors a clearer perspective on its operating performance[43] - Adjusted Operating Income and Adjusted Net Income from Continuing Operations are key non-GAAP measures used to evaluate the company's financial health[45] - EBITDA and Adjusted EBITDA are also highlighted as important metrics for assessing the company's operational efficiency[46] - Adjusted operating income for the six months ended November 30, 2025, was $7,999 thousand, up from $3,579 thousand in the same period of 2024, reflecting a year-over-year increase of 123%[56] - The adjusted operating margin improved to 4% for the six months ended November 30, 2025, compared to 5% for the same period in 2024[56] - Stock-based compensation expenses increased to $42,497 thousand for the six months ended November 30, 2025, compared to $1,900 thousand for the same period in 2024[56] - Interest paid decreased to $20,643 thousand for the six months ended November 30, 2025, down from $33,144 thousand in the same period of 2024, representing a decline of 38%[54] - The company incurred $801.5 million in capital expenditures for the six months ended November 30, 2025, compared to $225.8 million in the same period last year[53] - The company incurred $13,562 thousand in diligence, acquisition, disposition, and integration expenses for the three months ended November 30, 2025, compared to $8,493 thousand in the same period of 2024[56]

Core Insights - Applied Digital Corporation reported a significant increase in revenue for the fiscal second quarter 2026, reaching $126.6 million, which is a 250% increase compared to the same period last year [5][23] - The company achieved a net loss of $31.2 million, a reduction of 76% from the previous year, with net loss per share decreasing to $0.11 from $0.61 [5][30] - Adjusted EBITDA for the quarter was $20.2 million, compared to $6.1 million in the same quarter of the previous year, indicating improved operational efficiency [5][31] Financial Performance - Total revenues for the fiscal second quarter 2026 were $126.6 million, up from $36.2 million in the prior year [23] - Cost of revenues increased to $100.6 million, a 344% rise from $22.7 million, primarily due to tenant fit-out services for the HPC Hosting Business [24] - Selling, general and administrative expenses rose to $57.0 million, a 119% increase from $26.0 million, driven by business growth and stock-based compensation [26] Operational Updates - The company signed leases with two hyperscalers for a total of 600 MW of capacity, representing approximately $16 billion in prospective lease revenue [5][7] - Polaris Forge 1 reached Ready-for-Service, delivering 100 MW on schedule, marking a significant milestone in the 400 MW AI Factory buildout [6][8] - A 15-year lease was announced with a U.S. based investment-grade hyperscaler for 200 MW at the under-construction Polaris Forge 2 campus, expected to generate approximately $5 billion in revenue [6][7] Strategic Initiatives - The company completed a $2.35 billion private offering of senior secured notes to fund construction and repay existing loans [6][11] - Applied Digital is investing in advanced cooling technology through a $25 million funding round for Corintis, enhancing its data center capabilities [6][13] - Plans to spin out Applied Digital Cloud and merge it with EKSO Bionics to form ChronoScale, aiming to create a dedicated accelerated-compute platform for GPU-optimized AI infrastructure [6][21] Market Position and Future Outlook - The company is well-positioned in the AI infrastructure market, with hyperscaler capital expenditures exceeding $400 billion annually [15] - Management anticipates exceeding a $1 billion NOI target within the next five years due to strong demand and additional lease expectations [15] - The Dakotas region is highlighted as a compelling area for hyperscalers due to its climate and energy resources, contributing to increased demand for the company's services [9]

Applied Digital Corp. (NASDAQ:APLD) is scheduled to report its fiscal second-quarter 2026 financial results on Wednesday after the closing bell. Here's a look at what investors will be watching in the report and commentary from executives. APLD stock is climbing. See the chart and price action here. Key Estimates & FinancialsWall Street is looking for significant top-line growth as Dallas-based Applied Digital begins to recognize more revenue from its AI-focused data centers and tenant fit-out services.Anal ...

Group 1 - The discussion among investors indicates a mixed sentiment regarding the potential formation of an AI stock bubble, yet many remain optimistic about the industry's future [1][2] - Applied Digital (NASDAQ: APLD), a developer of data centers for AI computing workloads, has seen a significant increase in demand for its stock, with shares rising over 208% in the past year and 1,430% over the past three years [3][5] - The company's data centers are critical for AI computing, providing high-performance computing infrastructure that supports hyperscalers, which are essential for AI applications [7] Group 2 - Applied Digital has secured a lease agreement with CoreWeave for its Polaris Forge 1 campus, providing 400 megawatts of data center infrastructure, with expected lease revenue of approximately $11 billion [8] - The company is also in advanced negotiations with another investment-grade hyperscaler for multiple campuses, indicating ongoing growth and expansion opportunities [9]

Core Viewpoint - Applied Digital (APLD) is transitioning from development to revenue generation, focusing on AI infrastructure and capitalizing on the growing demand in this sector [1][5] Company Summary - APLD has commenced operations at Polaris Forge 1 and is constructing new AI campuses, which are essential for its revenue generation strategy [1] - The company's projected revenue for 2026 is $281 million, reflecting a year-over-year growth of nearly 27% [3][5] - APLD's market capitalization is approximately $8.47 billion, with a trading volume of 30.07 million shares [4] Industry Summary - The broader industry environment is favorable, with hyperscalers investing $350 billion annually in AI infrastructure [3] - Despite the positive outlook, there is a limited supply of GPU-ready data centers, which may challenge APLD's execution capabilities in the hyperscale data center market [4]

Applied Digital ( APLD ) stock has seen quite the upward trend in recent times. Towards the latter half of 2025, around mid-October, shares reached the $37 mark. Now, shares have come down quite a bit and can be picked up in the $30 range after theI hold a Master’s degree in Cell Biology and began my career working for several years as a lab technician in a drug discovery clinic, where I gained extensive hands-on experience in cell culture, assay development, and therapeutic research. That scientific founda ...

Core Viewpoint - Applied Digital Corporation (NASDAQ: APLD) is experiencing a significant upward trend in its consensus price target, indicating growing optimism among analysts regarding the company's future performance [1][6]. Price Target Trends - The average price target for APLD has increased from $34.64 a year ago to $45 last month, reflecting a strong upward trend in analyst expectations [4][6]. - In the last quarter, the average price target was $40.5, showing a steady increase and indicating growing optimism about the company's prospects [3]. Revenue Growth Potential - Analysts are optimistic about APLD's potential revenue growth in 2026, driven by increasing demand from hyperscalers and the operational status of Polaris Forge 1 [2]. - The company's lease revenue is expected to significantly enhance its top line, bolstered by a new contract [3]. Strategic Initiatives - The increase in the consensus price target can be attributed to the company's strategic initiatives and its focus on high-performance computing and artificial intelligence industries [5]. - The rebranding from Applied Blockchain, Inc. to Applied Digital Corporation in November 2022 may have contributed to a renewed focus and positive outlook from analysts [5]. Upcoming Earnings - The upcoming release of fiscal 2026 Q2 results is highly anticipated by investors and analysts, as it will provide insights into the company's financial performance and future prospects [4].

Key Takeaways APLD is moving from development to revenues as Polaris Forge 1 begins operations and new AI campuses scale.Zacks Consensus Estimate pegs APLD's 2026 revenue at $280.9M, implying 26.99% year-over-year growth.APLD's ability to convert new AI campuses into revenue will be tested as multiple sites scale simultaneously.Applied Digital (APLD) stands at a pivotal juncture as its expanding AI infrastructure portfolio transitions from development to revenue generation. With Polaris Forge1 beginning ope ...