Applied Digital Inc. Reports Impressive Q4 and Full Year 2026 Financial Results

Applied Digital reported fourth-quarter revenues of $258.7 million, representing a remarkable 407% increase compared to the same period last year. This surge is attributed to the expansion of the company's HPC Hosting Business, which has gained momentum through new long-term leases.

The company recorded a net loss attributable to common stockholders of $110.6 million, a 108% decrease from the prior year, indicating improved loss management. The net loss per share stood at $0.39, up 63% from the previous year. However, adjusted figures showed a positive trend, with adjusted revenue reaching $240.4 million and adjusted net income of $12.9 million, translating to $0.04 per diluted share.

Adjusted EBITDA for the quarter was $42.4 million, reflecting strong operational performance and cost management strategies. Net operating income was reported at $39.9 million, underscoring the company’s ability to generate revenue despite ongoing capital expenditures.

For the full year, Applied Digital achieved revenues of $611.3 million, marking a 167% increase year-over-year. However, the company faced a net loss of $249.2 million, a modest 7% decline from the previous fiscal year. The loss per share for the year was $0.91, down 22% from the prior year.

Adjusted revenue for the year reached $539.7 million, with adjusted net income of $36.1 million or $0.11 per diluted share. Adjusted EBITDA for the full year was $107.2 million, showcasing significant operational progress.

As of May 31, 2026, the company reported $4.2 billion in cash, cash equivalents, and restricted cash against $5.0 billion in debt, positioning itself well for future growth and development initiatives.

During the fourth quarter, Applied Digital secured two major 15-year leases with a high investment-grade hyperscaler for 300 megawatts (MW) each at Delta Forge 1 and Polaris Forge 3, potentially generating approximately $15 billion in contracted revenue. In a subsequent development, a third lease for 210 MW at Delta Forge 2 was signed, bringing total contracted revenue from these agreements to $20 billion.

The company is actively expanding its HPC capacity, currently managing 1.4 gigawatts (GW) of contracted critical IT load. This includes ongoing construction across various campuses, with substantial operational enhancements already in place. The first 100 MW data center at Polaris Forge 1 is operational, with a total capacity now reaching 175 MW.

Applied Digital successfully completed a $2.15 billion private offering of Senior Secured Notes and secured a revolving credit facility of up to $550 million to finance ongoing and future projects. This financial maneuvering strengthens the company’s ability to fund its ambitious growth plans.

Wes Cummins, Chairman and CEO of Applied Digital, reflected on the company’s transformative quarter and year, emphasizing the strategic nature of the new leases and the importance of delivering high-quality, GPU-ready facilities on time. He stated, “We believe delivering on time is a genuine differentiator in this industry,” which aligns with the company’s commitment to maintaining operational excellence in its service delivery.

Cummins also highlighted the strength of the Data Center Hosting business, which remains a high-margin source of cash flow, particularly in the current market environment where fluctuations in cryptocurrency pricing do not affect revenue streams.

Looking ahead, Applied Digital is optimistic about the expanding demand for AI and HPC infrastructure. The company is actively marketing an additional 1.7 GW of capacity across multiple states, reflecting robust market demand for its AI Factory campuses. Furthermore, it is pursuing a strategic power initiative to enhance access to reliable, low-cost energy, a critical factor for its operations.

In conclusion, Applied Digital's significant revenue growth, strategic lease agreements, and operational achievements place it in a strong position to capitalize on the burgeoning demand for high-performance computing infrastructure, paving the way for a promising future in the tech landscape.