A fixed rule set over this filing's XBRL figures and the number of high-severity risks found in it — no model judgement.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Applied Digital Corporation reported FY2026 revenue growth of 167.5% YoY to $611.31M, driven by the ramp-up of its HPC Hosting segment, while aggressive infrastructure expansion widened operating losses to $236.46M.
Revenue
$611.31M
+167.45% YoY
EPS (Diluted)
-$0.91
+21.55% YoY
Operating Income
-$236.46M
-227.62% YoY
Applied Digital (APLD) reported FY2026 revenue of $611.31M, up 167.5% year over year. Diluted EPS was -$0.91. The company posted an operating loss of $236.46M. Operating cash flow was $89.69M. APLD's fiscal FY2026 corresponds to calendar FY 2026.
Applied Digital generated $611.3M in FY2026 revenue (+167.5% YoY) as HPC hosting scaled, but reported a $236.5M operating loss amid massive campus buildouts.
Last 4 quarters: 1 beat, 3 misses
Reported EPS of -$0.39 versus the -$0.22 analyst consensus — a -77.3% miss for Jun 2026.
The HPC Hosting segment began generating revenue in FY2026, contributing $385.3M ($270.6M from service revenue and $114.7M from rental/other revenue). The company secured lease agreements across Polaris Forge 1, Polaris Forge 2, and Delta Forge 1 with major customers including CoreWeave and investment-grade hyperscalers, expanding contracted capacity to approximately 1.4 GW.
Source: 10-K Item 7, p.42-43
On May 5, 2026, APLD completed the contribution of its cloud business to ChronoScale Corporation (formerly Ekso Bionics), resulting in APLD owning approximately 97% of ChronoScale's common stock (NASDAQ: CHRN). ChronoScale's financial results remain consolidated within APLD's statements.
Source: 10-K Item 7, p.41, 43
APLD funded its ongoing infrastructure development by issuing $2.35B in 9.250% Senior Secured Notes due 2030, securing $1.8B funded to date from Macquarie Asset Management (MAM) under an A&R UPA, and expanding its Series G Preferred Stock commitments up to $1.59B.
Source: 10-K Item 7, p.44-46, 48
The crypto mining Data Center Hosting segment generated $154.4M in FY2026 revenue (up from $144.2M in FY2025) serving a single customer across its 106 MW Jamestown and 180 MW Ellendale facilities, with 1.5 years remaining on its 5-year contract.
Source: 10-K Item 7, p.43
In FY2026, a single HPC customer generated 59% of total revenue from continuing operations, and a single crypto mining customer accounted for 25%. The loss of, or non-performance by, either customer would severely harm results of operations and cash flows.
Source: 10-K Item 1A, p.16
The company relies on significant debt financing, including $2.35B in senior secured notes, which creates heavy interest and principal payment requirements. High leverage restricts operational flexibility, imposes restrictive covenants, and increases vulnerability to economic downturns.
Source: 10-K Item 1A, p.13-14
APLD consolidates majority-owned ChronoScale Corporation; any audit adjustments, control weaknesses, or reporting delays at ChronoScale could result in material misstatements or required revisions to APLD's consolidated financial statements.
Source: 10-K Item 1A, p.16-17
Developing large-scale AI data center campuses involves risks of construction delays, power supply bottlenecks, tariff impacts on electrical equipment, and cost overruns. Failure to meet ready-for-service dates could trigger lease cancellations by key customers.
Source: 10-K Item 1A, p.15-17
Unqualified
Source: Report of Independent Registered Public Accounting Firm, p.69
This analysis does not extract a guidance section. Companies issue revenue and EPS outlook in the 8-K press release and on the earnings call rather than in the 10-K itself — though the filing's management discussion can contain forward-looking statements, which appear in the highlights above where they were material.
Applied Digital (APLD) is next expected to report on , when the following quarter's results and any updated outlook will be available.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $611.31M | $228.57M | +167.45% |
Cost of Revenue | $396.86M | $216.76M | +83.09% |
Operating Income | -$236.46M | -$72.17M | -227.62% |
EPS (Basic) | -$0.91 | -$1.16 | +21.55% |
EPS (Diluted) | -$0.91 | -$1.16 | +21.55% |
SG&A Expense | $332.1M | $107.88M | +207.85% |
Applied Digital (APLD) reported FY2026 revenue of $611.31M, up 167.5% YoY, driven by $385.3M from its newly active HPC Hosting segment. Despite positive operating cash flow of $89.69M, rapid capital expansion and higher SG&A costs widened operating losses to $236.46M. The company ended FY2026 with $1.59B in cash and equivalents.
Revenue grew 167.5% YoY from $228.57M in FY2025 to $611.31M in FY2026. Growth was propelled by the launch of the HPC Hosting segment, which delivered $385.3M in revenue, alongside $154.4M from the Data Center Hosting segment serving crypto mining customers.
APLD highlighted severe customer concentration, noting that one HPC customer represented 59% of FY2026 revenue and one crypto customer accounted for 25%. Other significant risks include high debt leverage following $2.35B in note issuances, potential construction and power delays at data center campuses, and financial consolidation risks with majority-owned ChronoScale.
APLD strengthened its liquidity, holding $1.59B in cash and equivalents and achieving a current ratio of 4.01 following major debt and equity financings. However, its debt-to-equity ratio reached 3.60, and capital expenditures led to an investing cash outflow of $2.94B.
Applied Digital (APLD) is next expected to report earnings on Oct 7, 2026. The date comes from the analyst earnings calendar and can shift until the company confirms it.
APLD delivered 139.3% revenue growth in Q3 FY2026 to $126.6M, but operating losses widened sharply to -$85.7M as SG&A surged 250.8%, while the balance sheet expanded dramatically with cash jumping to $1.73B following massive financing activity.
APLD delivered 250% YoY revenue growth to $126.6M in Q2 FY2026, driven by rapid business expansion funded by $3.1B in financing activities, but operating losses widened to -$31.0M as costs scaled faster than revenue.