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 ...

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]