Financial Data and Key Metrics Changes - Revenues for the fiscal second quarter of 2026 were $126.6 million, up 250% from $36.2 million in the prior year [12] - Adjusted EBITDA for the quarter totaled $20.2 million [15] - Net loss was $31.2 million, or $0.11 per share, while adjusted net income was positive $100,000 or $0 per share [15] Business Line Data and Key Metrics Changes - The data center hosting segment generated $41.6 million of revenue, up 15% compared to the prior year, driven by increased capacity online [13] - Turnkey fit-out services associated with the HPC hosting business contributed $73 million to revenue [12] Market Data and Key Metrics Changes - The company has secured two hyperscale leases in North Dakota, representing 600 MW of lease capacity and approximately $16 billion in prospective lease revenue [6] - Inbound demand has increased significantly, with advanced discussions ongoing with another investment-grade hyperscaler across multiple regions [6] Company Strategy and Development Direction - The company aims to surpass its long-term goal of $1 billion in NOI within five years, leveraging low-cost energy and a supportive regulatory environment in the Dakotas [17] - A non-binding letter of intent has been entered to combine Applied Digital Cloud with Exo to form Chronoscale, allowing each to scale independently [20] Management's Comments on Operating Environment and Future Outlook - Management noted that the contracting environment has become more favorable over the past six months, with stable to slightly better pricing and improved contract terms [31] - The company is focused on scaling construction across multiple sites and ensuring timely delivery to customers [49] Other Important Information - The company ended the second fiscal quarter with $2.3 billion in cash and cash equivalents, compared to $2.6 billion in debt [15] - The company is exploring ways to add power to the grid without increasing costs to customers, reinforcing its leadership in data center design [18] Q&A Session Summary Question: Growth appetite in the cloud business and future GPU purchases - Management highlighted the advantage of having access to large-scale data center facilities for deploying accelerated compute, which will benefit the cloud business as it spins out [22][23] Question: Landscape for leases and pricing changes - Management indicated that pricing has been stable to slightly better, with more favorable terms in contracts [30][31] Question: Advanced discussions on new sites - Management confirmed advanced discussions on three sites totaling 900 MW [46][47] Question: Expansion opportunities at PF1 and PF2 - Management stated that each campus has the potential to scale to at least a gigawatt, with a clear path to grow capacity to 5 GW by 2030 or 2031 [72][75]

Financial Data and Key Metrics Changes - Revenues for the fiscal second quarter of 2026 were $126.6 million, up 250% from $36.2 million in the prior year [12] - Adjusted EBITDA for the quarter totaled $20.2 million [16] - Net loss was $31.2 million, or $0.11 per share, while adjusted net income was positive $100,000 or $0 per share [16] Business Line Data and Key Metrics Changes - The HPC hosting business generated $73 million in revenue from turnkey fit-out services, and $12 million from the first CoreWeave lease at Polaris Forge One [13] - The data center hosting segment contributed $41.6 million in revenue, up 15% compared to the prior year, driven by increased capacity online [14] Market Data and Key Metrics Changes - The company has secured two hyperscale leases in North Dakota, representing 600 megawatts of lease capacity and approximately $16 billion in prospective lease revenue [5] - Inbound demand has increased significantly, with advanced discussions ongoing with another investment-grade hyperscaler across multiple regions [5] Company Strategy and Development Direction - The company aims to maintain a competitive advantage in the Dakotas due to low-cost energy and ample land for expansion [7] - Plans to spin out Applied Digital Cloud to form Chronoscale, a dedicated GPU-accelerated compute platform, allowing each business to scale independently [20] - The company is committed to responsible development and community partnerships, investing in initiatives that support local development [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in surpassing the long-term goal of $1 billion in NOI within five years, driven by robust hyperscaler investment exceeding $400 billion annually [18] - The company is focused on maintaining a strong balance sheet and liquidity position to support future investments [16] Other Important Information - The company completed a $2.35 billion private offering of senior secured notes to finance the Polaris Forge One site [12] - The company has a multi-layered financing framework that allows leveraging third-party capital while retaining majority ownership of each site [11] Q&A Session Summary Question: Growth appetite in the cloud business and Chronoscale's future - Management highlighted the advantage of having access to large-scale data center facilities for Chronoscale, which will help attract customers [24] Question: Landscape for leases and pricing changes - Management noted that lease pricing has been stable to slightly better over the past six months, with more favorable contract terms being secured [31] Question: Expansion opportunities at PF1 and PF2 - Management confirmed that each campus has the potential to scale to at least a gigawatt, with a clear path to grow capacity to 5 gigawatts by 2030 or 2031 [72]

Core Insights - Applied Digital reported second-quarter revenue that exceeded Wall Street estimates, driven by strong demand for its large-scale facilities for artificial intelligence [1] Company Summary - The company operates data centers and has seen a significant increase in demand for its services, particularly in the artificial intelligence sector [1] Industry Summary - The data center industry is experiencing robust growth, largely fueled by the rising need for infrastructure to support artificial intelligence applications [1]

Core Insights - Applied Digital Corp. reported second quarter earnings that exceeded analyst expectations, with earnings of zero cents per share compared to a consensus estimate of a loss of 10 cents [2] - The company's quarterly revenue reached $126.59 million, significantly surpassing the Street estimate of $89.76 million and showing a substantial increase from $36.16 million in the same period last year [2] Financial Performance - Revenue from the HPC Hosting Business was $85 million for the quarter and $111.3 million for the six months ending November 30, 2025 [2] - Revenue from the Data Center Hosting Business segment was $41.6 million for the quarter, reflecting a 15% increase from $36.2 million during the same period last year [3] Strategic Positioning - The Dakotas are highlighted as a strategic region for hyperscalers due to favorable climate and energy resources, providing Applied Digital with a competitive advantage [4] - The company has secured contracts with two hyperscalers in the region and is in advanced discussions with another investment-grade hyperscaler for additional sites, indicating strong inbound demand [5] Stock Performance - Following the earnings report, Applied Digital's stock rose by 4.84% to $30.99 in extended trading [6]

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]

Core Insights - Applied Digital Corp. is set to report its fiscal second-quarter 2026 financial results, with investors keenly observing the outcomes and executive commentary [1] - The stock has shown positive momentum, climbing over 25% in early January [10] Financial Estimates - Analysts anticipate a quarterly revenue of $89.76 million, reflecting a year-over-year increase of over 40% from $63.87 million in Q2 2025 [2][3] - The expected loss per share is projected at ten cents, compared to a loss of six cents per share in the same quarter last year [3] Key Growth Drivers - Revenue growth is attributed to the ramp-up of the Polaris Forge 1 campus and services provided to CoreWeave Corp. [3] - The partnership with CoreWeave, which expanded its lease at the Ellendale campus to a full 400 MW, is expected to generate significant lease revenue starting late 2025 or early 2026, with a total contract value of approximately $11 billion over 15 years [5] Strategic Developments - Applied Digital announced a spin-off of its cloud business to merge with Ekso Bionics Holdings, forming a new entity called ChronoScale, which aims to enhance focus on its AI Factory data center business [6][9] - The company has secured a development loan facility with Macquarie Group to support its new AI campuses, highlighting its focus on financing and liquidity [6] Operational Insights - Despite the expected net loss, the company is benefiting from operating leverage as its fixed-cost infrastructure begins to generate recurring cash flow [4] - Management's commentary on the cost of capital and future funding needs for Polaris Forge 2 will be a key focus for analysts, given the capital-intensive nature of building hyperscale data centers [7]

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 ...