Applied Digital (US:APLD)2026-01-07 21:51Financial 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]