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 ...

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].

Core Insights - Applied Digital (APLD) is transitioning from development to revenue generation with its AI infrastructure portfolio, particularly with the operational launch of Polaris Forge 1 and ongoing construction of new campuses [2][10] - The hyperscale data center market is experiencing a demand-supply imbalance, with an estimated $350 billion being deployed annually toward AI infrastructure, creating favorable conditions for developers like APLD [3] Company Developments - The Polaris Forge 1 campus has a 400-megawatt CoreWeave lease valued at approximately $11 billion over 15 years, with projections of generating around $500 million in annual net operating income once fully operational [4] - APLD has a 4-gigawatt active development pipeline and is negotiating for two new locations, with a proprietary cooling system that enhances operational efficiency [5] Financial Projections - The Zacks Consensus Estimate for APLD's fiscal 2026 revenues is $280.9 million, indicating a year-over-year growth of 26.99% [5][10] - APLD's stock has increased by 212.6% over the past six months, significantly outperforming the broader Zacks Finance sector [8] Competitive Landscape - APLD faces competition from Riot Platforms and Equinix, with Riot Platforms shifting focus to high-density compute and Equinix leveraging its global scale and established relationships in the hyperscaler market [7] - Equinix is retrofitting existing facilities for AI workloads while expanding capacity, intensifying competitive dynamics for APLD [7] Valuation Metrics - APLD's stock is considered overvalued, with a forward 12-month price/sales ratio of 19.26X compared to the sector's 9.08X, and it holds a Value Score of F [11]

Earnings Reports Overview - The earnings calendar for the first full week of 2026 includes reports from sectors such as cannabis, AI infrastructure, and consumer goods [1] - Notable companies reporting include Albertsons Companies, Inc. and Cal-Maine Foods, Inc. before the market opens on Wednesday [3] - After the market closes on Wednesday, Applied Digital Corp. is expected to report a loss of 10 cents per share with quarterly revenue of $87.51 million [4] Cannabis Sector Insights - Tilray Brands, Inc. is set to report its second-quarter 2026 results after the market closes on Thursday, with analysts expecting a loss of 20 cents per share and revenue of $210.95 million [6][7] - The company has never reported a profitable quarter, and investors will be focused on updates regarding its new division Tilray Medical USA and expansion strategy following recent federal rescheduling news [7] Other Company Reports - Constellation Brands, Inc. will report its third-quarter 2026 results after Wednesday's closing bell [5] - Other companies reporting include Commercial Metals Co., Neogen Corp., Helen of Troy Limited, and The Simply Good Foods Co. throughout the week [9]

Company Overview - Applied Digital Corporation operates in the technology infrastructure market, focusing on digital infrastructure for high-demand computing applications, particularly supporting AI and HPC workloads through specialized data centers and cloud services [5] - The company generates revenue through infrastructure services for crypto mining, GPU computing solutions, and the design, construction, and management of data centers, serving enterprise clients in AI, machine learning, and HPC sectors across North America [6] Financial Performance - As of September 30, Applied Digital reported a revenue of $64.2 million for the fiscal third quarter, reflecting an 84.3% year-over-year increase [10] - The company has a market capitalization of $6.34 billion and a total revenue of $219.02 million for the trailing twelve months (TTM), with a net loss of $225.71 million [4] Stock Performance - As of November 13, shares of Applied Digital were priced at $23.06, which is a 221.6% increase over the past year [3] - The stock has gained 231.4% over the last year, significantly outperforming the S&P 500 index's 17.7% return and the Nasdaq Composite's 20% [9] Investment Activity - Hood River Capital Management LLC sold 812,377 shares of Applied Digital during the third quarter, reducing its position by 3.7%, while the remaining stake stands at 21,046,654 shares valued at $482.8 million, representing 5.7% of the fund's assets under management [2][3][9]