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Aug 31, 2025
Applied Digital Q1 2026 Earnings Report
Applied Digital reported a net loss and continued revenue growth in the first quarter of fiscal year 2026.
Key Takeaways
Applied Digital saw revenues rise significantly year-over-year, driven by HPC installations and steady performance in the data center hosting segment, though it posted a net loss due to high operating expenses and investments.
Revenue by Segment
Forward Guidance
Management expects strong revenue ramp in HPC leases and believes it is well-positioned for scale with multi-year lease agreements and additional funding.
Positive Outlook
- Full 400 MW at Polaris Forge 1 now under lease with CoreWeave.
- Approximately $11 billion in anticipated contracted lease revenue secured.
- Initial 200 MW construction for Polaris Forge 2 has begun.
- Strong capital backing with $362.5M in new funding post quarter-end.
- On track for $500M annualized NOI from Polaris Forge 1.
Challenges Ahead
- Continued net losses due to high SG&A and ramp-up expenses.
- Adjusted EBITDA dropped significantly from prior year.
- High cost of revenue, particularly from fit-out services.
- Rising interest expense impacting profitability.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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