The data-center operator indicates it could finalize a lease with an unnamed client by the start of the year. ...

Core Insights - Applied Digital's stock rose by 7% in premarket trading following a strong second-quarter revenue report that exceeded Wall Street expectations, driven by demand for AI-related infrastructure [1] Revenue Performance - The company reported fiscal second-quarter revenue of $126.6 million, significantly surpassing analysts' expectations of approximately $88 million, and up from $36.16 million in the same period last year, indicating rapid growth due to increased demand for AI training and deployment [2] - Applied Digital posted a net loss of $19.1 million, or 7 cents per share, a notable improvement from a loss of $139.4 million, or 66 cents per share, in the prior-year quarter, with adjusted earnings breaking even compared to analyst forecasts of a 16 cents loss [3] Long-term Leasing Agreements - Growth is supported by long-term leasing agreements with hyperscalers, including a recent $5 billion lease for 200 megawatts of capacity at the Polaris Forge 2 campus in North Dakota, with existing leases expected to generate approximately $16 billion in revenue over their terms [4][5] - The strategic advantages of the region, such as a cool climate and abundant energy supply, position Applied Digital as a competitive provider for hyperscale customers [5] Future Outlook - Based on current and anticipated lease activity, the company expects to exceed its $1 billion net operating income target within the next five years, supported by projections for additional hyperscaler customers [6] Corporate Restructuring - Applied Digital is restructuring its corporate framework to focus on becoming a data center-focused real estate investment trust, planning to spin off its cloud services business and merge it with Ekso Bionics to create a new AI-focused entity called ChronoScale, retaining a 97% ownership stake [8][9]

Applied Digital Corp. (NASDAQ:APLD) is one of the best strong buy stocks to invest in right now. On December 30, Northland reiterated an Outperform rating on Applied Digital Corp. (NASDAQ:APLD) with a $40 price target, establishing the stock as a top pick for 2026. It stated that the company holds a strategic position to outperform its peers next year, supported by its ability to execute on schedule, the continued demand for power by hyperscalers, and its notable power assets’ pipeline. TD Cowen Stays Bul ...

Major U.S. stock indexes finished Wednesday mixed. The Dow Jones Industrial Average slid 0.9% to 48,996.08, while the S&P 500 edged down 0.3%. Nasdaq bucked the trend, rising 0.16% to 23,584.27.These are the top stocks that gained the attention of retail traders and investors throughout the day.Applied Digital Corp. (NASDAQ:APLD) Applied Digital shares fell 2.33% to close at $29.56, with an intraday high of $31.45 and a low of $29.52. The stock’s 52-week range is $3.31 to $40.20. In the after-hours trading, ...

Core Insights - The company announced significant lease agreements in North Dakota, totaling 600 megawatts of capacity and approximately $16 billion in prospective lease revenue [1][7] - A 15-year lease with a U.S.-based investment-grade hyperscaler for 200 megawatts at Polaris Forge Two is valued at around $5 billion, with the project expected to be operational by 2026 [1] - Polaris Forge One is projected to host 400 megawatts for CoreWeave, representing about $11 billion in lease revenue over 15 years, with completion expected by the end of 2027 [2][7] Financial Performance - Fiscal Q2 revenue reached $126.6 million, a 250% increase year-over-year, driven by turnkey fit-out services and partial lease recognition [6][19] - Cash-basis lease revenues were approximately $8 million, with adjusted EBITDA reported at $20.2 million and a GAAP net loss of $31.2 million [6][13] - Cost of revenues increased to $100.6 million, attributed mainly to tenant fit-out services, while SG&A expenses rose to $57 million due to stock-based compensation and higher personnel costs [12] Financing and Capital Structure - The company established a financing framework, drawing $900 million from a preferred equity facility and issuing $2.35 billion in secured notes to support campus builds [5][15] - As of the end of the quarter, the company had $2.3 billion in cash and cash equivalents against $2.6 billion in debt, with plans to refinance at lower rates once buildings are operational [17][16] Market Demand and Growth Prospects - Inbound demand for leases has increased significantly following the recent agreements, with advanced discussions on additional sites totaling approximately 900 megawatts [8][9] - The company is focused on scaling construction execution across multiple sites, emphasizing execution and supply chain as key constraints [9] Strategic Initiatives - The company plans to spin out its cloud business into Chronoscale, expected to close in H1 2026, allowing for independent scaling of the cloud platform and data center business [20] - Initiatives are underway to enhance power and cooling solutions for high-density AI infrastructure, including partnerships for advanced cooling technologies [21]

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 megawatts of lease capacity and approximately $16 billion in prospective lease revenue [6][10] - Inbound demand for data center capacity has increased significantly due to competition among hyperscalers [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 business 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 [31] - The company is in advanced discussions for three additional sites representing 900 megawatts, indicating a robust pipeline [48] Other Important Information - The company completed a $2.35 billion private offering of senior secured notes to finance the first two buildings at Polaris Forge One [12] - The company ended the quarter with $2.3 billion in cash and cash equivalents, positioning it well for future investments [15] 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 Chronoscale, which will help attract customers [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: Expansion opportunities at PF1 and PF2 - Management confirmed that each campus has the potential to reach at least a gigawatt, with a clear path to grow capacity significantly [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 [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]