Applied Digital Releases Fiscal Q1 2026 Financial Results

Bassyonni

ago 2 hours

Applied Digital Corporation (Nasdaq: APLD), a provider of high-performance data centers, recently disclosed its financial results for the first quarter of fiscal year 2026, concluding on August 31, 2025. The company reported significant revenue growth and key operational developments during this period.

Fiscal Q1 2026 Financial Results

In the fiscal first quarter, Applied Digital generated revenues of $64.2 million, reflecting an impressive increase of 84% compared to the same period last year. However, the company recorded a net loss of $27.8 million, amounting to a loss per share of $0.11. This figure is a significant improvement from previous losses.

Revenue: $64.2 million (up 84% year-over-year)
Net Loss: $27.8 million
Net Loss per Share: $0.11
Adjusted Net Loss: $7.6 million
Adjusted EBITDA: $0.5 million

Operational Highlights

Applied Digital has made strides in leasing and construction efforts. Recently, the company finalized a new lease with CoreWeave, Inc., adding 150 megawatts of capacity at its Polaris Forge 1 campus in Ellendale, North Dakota. This brings the expected contract revenue for Polaris Forge 1 to around $11 billion. The campus is expected to reach full operational capacity by 2026.

Construction is progressing on the new 150 MW building at Polaris Forge 1, while work has also commenced on the Polaris Forge 2 campus, which will add an additional 300 MW capacity. The first phase of Polaris Forge 2 is expected to come online by 2026.

Financial Strategy and Future Outlook

Applied Digital has drawn $112.5 million from its $5 billion preferred equity facility with Macquarie Asset Management to support its ongoing projects. The company aims to establish itself as a leading force in AI infrastructure as demand increases worldwide. Applied Digital is on track for an annualized net operating income (NOI) run rate of approximately $500 million once the Polaris Forge 1 campus is fully operational.

Management believes that the growing interest from hyperscalers will drive significant future growth. The company aims to secure tenant agreements that may bring its total leased capacity across two sites to 600 MW, positioning it strategically in the rapidly evolving AI data center market.

Data Center Operations Update

The company’s data center hosting services reported $37.9 million in revenue for the quarter. This represents a 9% increase from the previous year, primarily driven by added capacity across facilities. The hosting segment continues to thrive amid rising Bitcoin prices, further intensifying demand for its services.

Conclusion

As Applied Digital heads into the next quarter, it is well-positioned to capitalize on a growing demand for advanced digital infrastructure. With an impressive multi-GW pipeline and enhanced financing strategies, the company looks set to expand its footprint in the AI and blockchain sectors.