Applied Digital Corporation (APLD) is a U.S.-based company that designs, develops, and operates next-generation digital infrastructure across North America. The company provides digital infrastructure solutions and cloud services to industries experiencing rapid growth, including High-Performance Computing (HPC) and Artificial Intelligence (AI). APLD sells cloud services, data center hosting, and infrastructure solutions tailored for AI applications and crypto mining customers.
- Data Center Hosting - Provides energized space to crypto mining customers, where customer-owned hardware is installed in the company's facilities, and operational and maintenance services are provided for a fixed fee.
- Cloud Services - Offers cloud services through the Sai Computing brand to customers such as AI and machine learning developers, who pay a fixed rate for a managed hosting environment supported by company-provided equipment.
- High-Performance Compute (HPC) Hosting - Designs, builds, and operates data centers designed to support high-compute applications using advanced infrastructures.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Kate Reed ExecutiveBoard | Chief Growth Officer & Director | None | Kate Reed joined APLD as a Director in November 2023 and became Chief Growth Officer in May 2024. She has extensive experience in technology leadership from her previous roles at IBM Corporation. | |
Wes Cummins ExecutiveBoard | Chairman & CEO | Board Member at Sequans Communications S.A. and Vishay Precision Group, Inc. | Wes Cummins has been with APLD since 2007, serving in various roles including CEO since March 2021. He is also the founder and CEO of 272 Capital LP and has over 20 years of experience as a technology investor. | View Report → |
David Rench Executive | Chief Administrative Officer | None | David Rench transitioned from CFO to Chief Administrative Officer in October 2024. He has been with APLD since March 2021, contributing significantly to financial strategy and operations. | |
Saidal Mohmand Executive | Chief Financial Officer | Director of Research at 272 Capital LP | Saidal Mohmand joined APLD in September 2021 as EVP of Finance and became CFO in October 2024. He has played a key role in financial strategy and capital market initiatives. | |
Chuck Hastings Board | Director | CEO of B. Riley Wealth Management, Board Member for IQvestment Holdings | Chuck Hastings has been a Director at APLD since April 2021. He is also the CEO of B. Riley Wealth Management and has a background in strategic initiatives and portfolio management. | |
Douglas Miller Board | Lead Independent Director | Board Member at Cognyte Software Ltd., Verint Systems Inc., and Sequans Communications S.A. | Douglas Miller has been a Lead Independent Director at APLD since April 2021. He brings extensive experience from his roles as a CFO and board member of public companies. | |
Ella Benson Board | Director | Director at Oasis Management Co., Ltd. | Ella Benson joined APLD's Board in May 2024 and serves as Chairperson of the Nominating and Governance Committee. She has extensive experience in financial services and investment management. | |
Rachel Lee Board | Director | Board Member at Bank of Hope and Legacy Franchise Concepts | Rachel Lee joined APLD's Board in February 2024. She has a strong background in finance and investment, having served as a Partner at Ares Management Corporation. | |
Richard Nottenburg Board | Director | Executive Chairman of NxBeam Inc., Board Member at Cognyte Software Ltd., Verint Systems Inc., and Sequans Communications S.A. | Richard Nottenburg has been a Director at APLD since June 2021 and serves as Chairman of the Board for Applied Digital Cloud Corporation. He has a rich background in technology and governance. |
- Can you provide more detail on the current status of your discussions with multiple hyperscalers and where each stands in the due diligence process?
- Regarding the Macquarie investment, how does the 15% common equity interest in your HPC business segment impact existing shareholders, and can you clarify the specific investment they're making for that stake?
- With the reported demand for data center capacity and the potential shortfall in power availability by 2028, how confident are you in securing the necessary power for your pipeline, and what are the risks associated with your 2026 and 2027 power availability?
- You've mentioned that the pricing environment reflects the strong demand in the market; can you elaborate on whether the yield on cost for new leases exceeds your cost of capital, particularly in light of the 12.75% dividend on the preferred equity?
- The renegotiation of your GPU lease terms extended the amortization period from two years to five years, reducing your quarterly depreciation expense; how does this change impact your financials, and what should investors expect regarding your depreciation and amortization expenses moving forward?
Research analysts who have asked questions during Applied Digital earnings calls.
Darren Aftahi
Roth Capital Partners
4 questions for APLD
George Sutton
Craig-Hallum
4 questions for APLD
Mike Grondahl
Lake Street Capital Markets
4 questions for APLD
Nick Giles
B. Riley Securities
3 questions for APLD
John Todaro
Needham & Company
2 questions for APLD
Brett Knoblauch
Cantor Fitzgerald & Co.
1 question for APLD
Jon Gruber
Lagunitas Investments
1 question for APLD
Lucas Pipes
B. Riley Securities
1 question for APLD
Michael Donovan
H.C. Wainwright & Co.
1 question for APLD
Rob Brown
Lake Street Capital Markets
1 question for APLD
Thomas Shinske
Cantor Fitzgerald
1 question for APLD
| Customer | Relationship | Segment | Details |
|---|---|---|---|
Customer A | Single largest occupant of the data center hosting business | Data Center Hosting | 93% of total revenue in FY2025 , 75% in FY2024 , 24% in FY2023. |
Customer B | Related party: subsidiary of an entity that previously owned >5% of APLD stock | Data Center Hosting | $1.24 million in revenue in FY2025 , representing approx. 0.86% of total FY2025 revenue ( , ). |
Customer C | Related party: 60% owned by an individual who previously owned >5% of APLD stock | Data Center Hosting | $0.68 million in revenue in FY2025 , representing approx. 0.47% of total FY2025 revenue ( , ). |
Recent press releases and 8-K filings for APLD.
- Applied Digital reported fiscal Q1 2026 revenue of $64.2 million, an 84% year-over-year increase, exceeding Street estimates. While remaining unprofitable, the company's reported loss per share of 7 cents was better than the 13-cent loss expected by LSEG.
- The company significantly expanded its infrastructure, activating its first 100 MW this quarter and having approximately 700 MW under construction. It secured a 150 MW addition at its Polaris Forge campus with CoreWeave, boosting the anticipated contracted lease revenue for that project to about $11 billion.
- To support its growth, Applied Digital drew over $360 million from a $5 billion preferred equity financing facility and obtained additional project and equipment financing.
- Following these results, the company's stock rallied 16-18%, contributing to a year-to-date market capitalization increase of approximately 345%. Analysts, however, highlighted ongoing concerns regarding negative margins, cash burn, and execution risks.
- Applied Digital (APLD) expanded its long-term lease agreement with CoreWeave for Polaris Forge 1 to 400 megawatts, increasing the total contract value to approximately $11 billion over 15 years.
- The company broke ground on Polaris Forge 2, a new campus near Harwood, North Dakota, with an initial 300 megawatts capacity and potential to scale to 1 gigawatt, with initial development costs projected at approximately $3 billion.
- For Q1 fiscal year 2026, revenues from continuing operations were $64.2 million, an 84% increase from Q1 2025, primarily driven by $26.3 million from tenant fit-out services.
- APLD reported a net loss of $27.8 million, or $0.11 per share, and an adjusted net loss of $7.6 million, or $0.03 per share, for Q1 fiscal year 2026.
- The company secured an initial $112.5 million draw from a $5 billion preferred equity facility with Macquarie Asset Management to advance construction of Polaris Forge 1, which is expected to unlock $20 to $25 billion in total capital for scaling.
- Applied Digital Corporation received $112.5 million in initial funding on October 7, 2025, from its perpetual preferred equity financing facility with Macquarie Asset Management, which can provide up to $5.0 billion.
- This funding will support the build-out of Applied Digital’s 400MW AI Factory campus in Ellendale, North Dakota (Polaris Forge 1), which has leased its critical IT capacity to CoreWeave.
- The financing arrangement is expected to substantially reduce Applied Digital’s equity contribution requirements for future development projects, with no additional equity contributions anticipated for Polaris Forge 1.
- Macquarie Equity Investors have committed up to $450,000,000 in equity financing, with the initial $112,500,000 funded at closing and the remaining $337,500,000 to be funded after the initial closing.
- A common stock purchase warrant was issued, granting the purchaser the right to buy 2,400,000 shares of APLD's common stock.
- Applied Digital reported revenues of $64.2 million for the fiscal first quarter ended August 31, 2025, representing an 84% increase from the prior year comparable period. The company recorded a net loss attributable to common stockholders of $27.8 million (or $0.11 per share) and an Adjusted EBITDA of $0.5 million for the quarter.
- The company finalized a new lease agreement with CoreWeave for an additional 150 MW at its Polaris Forge 1 campus, which is now fully leased. This brings the total anticipated contracted lease revenue for Polaris Forge 1 to approximately $11 billion.
- Applied Digital is nearing completion of its 100 MW building at Polaris Forge 1 and has initiated construction on the next 150 MW building at the same campus. Additionally, the company broke ground on Polaris Forge 2, a 300 MW IT load AI Factory campus, with the initial 200 MW expected to come online in 2026.
- Subsequent to the quarter end, the company drew an initial $112.5 million from its $5 billion preferred equity facility with Macquarie Asset Management, secured an additional $50 million in funding for Polaris Forge 2, and raised an additional $200 million from an expanded offering of its Series G Preferred Stock.
- Applied Digital Corporation's subsidiary, APLD FAR-01 LLC, entered into a promissory note on September 9, 2025, for an initial loan of $50 million from Macquarie Equipment Capital, Inc., with the potential for additional loans up to $25 million. This loan bears an 8.0% annual interest rate and matures by September 9, 2027.
- The proceeds from the promissory note are designated for transaction costs, the purchase and improvement of Polaris Forge 2 properties in Harwood, ND, related equipment, and general corporate working capital.
- On September 11, 2025, the company amended its Preferred Equity Purchase Agreement, increasing the aggregate commitment for Series G Convertible Preferred Stock from $300 million to $450 million.
- This increased preferred equity commitment aims to fund the continued construction and development of the Polaris Forge 1 data center campus in Ellendale, North Dakota, and other general corporate purposes.
- Applied Digital finalized a new lease agreement with CoreWeave for an additional 150MW at its Polaris Forge 1 Campus in Ellendale, North Dakota.
- This new lease increases the total critical IT capacity leased by CoreWeave at Polaris Forge 1 to 400MW.
- The agreement boosts Applied Digital's total anticipated contracted lease revenue to approximately $11 billion, with this new lease contributing an expected $4.0 billion over an approximately 15-year term.
- The additional 150MW data center is projected to be service-ready in mid 2027.
- In connection with the lease, Applied Digital issued CoreWeave a warrant to acquire up to 8,393,611 shares of common stock at an exercise price of $10.75 per share.
- Applied Digital signed two approximately 15-year lease agreements with CoreWeave to deliver 250MW of critical IT load at its Ellendale, North Dakota campus, expected to generate about $7 billion in revenue over the lease term.
- The transactions involve issuing a warrant for approximately 13 million shares at an exercise price of $7.19 per share, with provisions for additional warrants upon further capacity expansion.
- The company is also targeting an at-the-market offering of up to $200 million to support growth capital expenditures and working capital needs.
- APLD filed an 8‑K on May 30, 2025, highlighting that its Cloud Services Business has been reclassified as held for sale and will be reported as discontinued operations beginning in the fourth quarter of the fiscal year, following board approval to negotiate a potential transaction.
- The filing includes unaudited pro forma condensed consolidated financial statements for the nine‐month period ended February 28, 2025, and the fiscal years ended May 31, 2024 and 2023, reflecting adjustments that remove associated revenues, expenses, and assets of the Cloud Services Business.
- The reported transaction accounting adjustments are preliminary and may lead to material differences once the sale is finalized, emphasizing the need for investors to consider potential future impacts on the financial results.
- Applied Digital Corp. has secured a convertible preferred equity facility with a total capacity of $150 million to finance the development of its Ellendale Multi-Building HPC Campus.
- The facility allows the company to draw funds at its discretion in increments of $25 million over a 36-month period, with shares issued at a purchase price of $1,000 per share at a 4% discount and convertible into common stock under predefined terms.
- Robust Financial Performance: Q3 2025 revenues reached $52.9 million (a 22% YoY increase) with a GAAP net loss of $36.1 million and adjusted EBITDA of $10.0 million
- Major Financing Milestones: Secured a $375 million financing from SMBC and announced a strategic transaction with Macquarie Asset Management that could unlock up to $5 billion for data center expansion
- Accelerated Data Center Expansion: The Ellendale campus is on schedule with the first revenue-generating 100-MW building by Q4 2025, followed by additional 150-MW projects in Q2 2026 and Q1 2027; plus 286 MW of fully contracted capacity in North Dakota
- Cloud Services Strategic Update: The board is reviewing options for its cloud business, with plans approved to sell the Cloud Services Business as it transitions from a single-tenant to a multi-tenant model
- Management Enhancement: Appointment of Laura Laltrello as COO to strengthen data center operations and drive strategic execution