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Applied Digital (APLD +8.54%) was a company and stock on the move Wednesday. The artificial intelligence (AI) data center operator's equity rose largely on the back of a new development contract it signed with a peer. Adding to this was a rather bullish new research note from an analyst. On a day when the S&P 500 index rose by 0.5%, Applied's stock ended the trading session almost 9% higher.

Partnering upBefore market open, green data center developer Soluna Holdings (SLNH -2.83%) announced that it and Applied have agreed to form a joint-venture company. That entity, which doesn't yet have a name, will build a planned 50-megawatt, next-generation data center near Soluna's Dorothy 3 development site in Texas. It will be powered, in part, by a nearby wind farm.

Image source: Getty Images.

Applied is expected to hold 51% of the joint venture, with Soluna owning the remainder. Under the terms of their deal, Soluna will contribute the necessary land and power-related project assets, while Applied will supply capital.

The joint venture agreement is subject to a set of conditions and approvals, including a tax abatement granted by the county where the project will be located. The agreement between the companies is expected to be completed by the end of this year.

The project already has a tenant; Soluna said that ChronoScale Holdings, an accelerated compute platform majority-owned by Applied, has signed a non-binding letter of intent to lease the data center.

$20.98+$1.65 (+8.54%)

NASDAQ · As of 4:00 PM ET 10/21/26

An analyst returnsSeparately, Roth/MKM's Bryan Baratian reinstated his coverage of Applied. He's firmly in the bull camp with the stock, as he flagged it as a buy at a price target of $35 per share. This is a robust 67% above its latest closing price.

Applied continues to set itself apart from the clutch of former and current crypto businesses pushing deep into the AI data center space. Earlier this month, it announced it reached ready-for-service status at a facility in North Dakota, so at this point it's building significant momentum in this potentially very lucrative business. I'd say its stock is definitely worth considering as a buy.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Applied Digital TodayAPLDApplied Digital$19.58 +0.33 (+1.74%) As of 12:05 PM Eastern This is a fair market value price provided by Massive. Learn more.52-Week Range$17.65▼$50.72Price Target$62.25Add to WatchlistWhen macroeconomic fears trigger an approximate 30% multiple compression in an artificial intelligence (AI) infrastructure asset generating triple-digit revenue growth, the divergence between market sentiment and operating performance deserves attention.

Applied Digital Corporation (NASDAQ:APLD – Get Free Report) CEO Wes Cummins bought 55,803 shares of the company’s stock in a transaction that occurred on Friday, October 16th. The stock was bought at an average price of $18.04 per share, for a total transaction of $1,006,686.12. Following the acquisition, the chief executive officer directly owned 5,874,453 shares of the company’s stock, valued at $105,975,132.12. The trade was a 0.96% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website.

Applied Digital Trading Up 6.6%
NASDAQ:APLD opened at $19.25 on Tuesday. Applied Digital Corporation has a 52-week low of $17.65 and a 52-week high of $50.72. The stock has a 50-day simple moving average of $25.92 and a two-hundred day simple moving average of $32.32. The company has a debt-to-equity ratio of 3.90, a current ratio of 2.56 and a quick ratio of 2.56.

Applied Digital (NASDAQ:APLD – Get Free Report) last announced its earnings results on Wednesday, October 7th. The company reported ($0.01) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.30) by $0.29. The firm had revenue of $300.39 million for the quarter, compared to analysts’ expectations of $116.29 million. Applied Digital had a negative net margin of 51.28% and a negative return on equity of 27.21%. The business’s revenue was up 367.8% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.03) EPS. On average, sell-side analysts forecast that Applied Digital Corporation will post -2.06 earnings per share for the current fiscal year.

Institutional Trading of Applied Digital
Several institutional investors have recently made changes to their positions in the company. FNY Investment Advisers LLC purchased a new stake in shares of Applied Digital during the second quarter worth approximately $37,000. Osbon Capital Management LLC acquired a new stake in Applied Digital in the fourth quarter valued at approximately $28,000. Bartlett & CO. Wealth Management LLC raised its holdings in Applied Digital by 244.3% in the first quarter. Bartlett & CO. Wealth Management LLC now owns 1,205 shares of the company’s stock valued at $29,000 after acquiring an additional 855 shares in the last quarter. Ancora Advisors LLC purchased a new position in Applied Digital in the second quarter worth approximately $56,000. Finally, Creative Financial Designs Inc. ADV lifted its stake in Applied Digital by 691.8% in the second quarter. Creative Financial Designs Inc. ADV now owns 1,536 shares of the company’s stock worth $57,000 after acquiring an additional 1,342 shares during the last quarter. Hedge funds and other institutional investors own 65.67% of the company’s stock.
More Applied Digital News
Here are the key news stories impacting Applied Digital this week:

Positive Sentiment: CEO Wes Cummins and President Jason Gechen Zhang purchased approximately $6.66 million of Applied Digital stock in open-market transactions. The purchases may signal management’s confidence in the company’s contracted backlog and long-term growth prospects, although they do not guarantee that the recent selloff has ended. Applied Digital CEO and President Buy $6.66 Million in Shares
Positive Sentiment: Applied Digital benefited from a rebound across AI infrastructure stocks after Goldman Sachs upgraded CoreWeave, a tenant of Applied Digital, to Buy. The move improved sentiment toward companies developing power-backed data centers, even though Applied Digital did not announce a new catalyst of its own. Applied Digital and AI Infrastructure Stocks Rebound
Positive Sentiment: The company has secured access to as much as 1 gigawatt of potential power capacity in Finland for a future AI data center campus. Investors view permitted power and data center capacity as scarce strategic assets, particularly as hyperscalers expand their AI workloads. Applied Digital Stock and Finland AI Campus
Neutral Sentiment: Applied Digital’s reported revenue reached $341.88 million, but it also recorded a $237.08 million net loss. The results highlight strong demand growth while underscoring the company’s lack of current profitability.
Negative Sentiment: Analysts continue to focus on approximately $6.4 billion of debt and an 866% surge in interest expense. Heavy financing costs could limit cash flow and delay profitability despite rapidly growing AI-related revenue. Applied Digital Interest Costs and Profitability
Negative Sentiment: A recent director stock sale had previously intensified selling pressure, though its impact was outweighed by the much larger CEO and president purchases.

Wall Street Analysts Forecast Growth
A number of equities research analysts have recently weighed in on the company. Citigroup restated a “market outperform” rating on shares of Applied Digital in a research note on Thursday, October 8th. Zacks Research lowered Applied Digital from a “hold” rating to a “strong sell” rating in a research note on Wednesday, August 26th. Wells Fargo & Company reiterated an “overweight” rating and issued a $55.00 target price (up from $50.00) on shares of Applied Digital in a research note on Thursday, October 8th. Needham & Company LLC dropped their target price on Applied Digital from $83.00 to $70.00 and set a “buy” rating on the stock in a research report on Thursday, October 8th. Finally, UBS Group restated a “buy” rating on shares of Applied Digital in a research note on Thursday, October 8th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $62.25.

Read Our Latest Research Report on APLD

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Applied Digital Corporation (NASDAQ: APLD) develops and operates digital infrastructure designed to support high-performance computing and artificial intelligence applications. The company provides data-center capacity, hosting services and related infrastructure for customers that require substantial computing power and energy resources.

Its business includes high-performance computing data centers and cloud services intended to support artificial intelligence, machine learning, cryptocurrency mining and other compute-intensive workloads.

Further Reading

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What happened Applied Digital Corp. (NASDAQ: APLD) President Jason Gechen Zhang bought 300,000 shares on 2026-10-16 at a weighted average $18.86 each.

The Form 4 says the purchase was about $5.66 million and was reported on 2026-10-19.

Key numbers Metric Latest Change Source Shares bought 300,000 shares SEC Form 4 Weighted average purchase price $18.86 per share SEC Form 4 Approximate transaction value about $5.66 million SEC Form 4 Shares held after purchase 2,839,227 shares SEC Form 4 Purchase as prior holding 11.8% Calculated from SEC Form 4 Read more: Applied Digital (APLD) stock analysis and investment case Why it matters OptimistFi's case is that Applied Digital is a leveraged AI-infrastructure execution story. The business works if scarce, purpose-built HPC data-center capacity fills fast enough to offset construction risk, fixed costs and financing dilution. Zhang's purchase supports that view because the president added stock instead of cutting exposure.

OptimistFi's calculation puts the buy at 11.8% of the holding before the trade. The filing also shows a weighted average price of $18.86 a share, with separate trades from $18.40 to $19.16. That range shows the purchase was made in more than one execution.

After the purchase, Zhang reported 2,839,227 shares held directly. The filing identifies him as President. That larger stake matters because the Form 4 ties the trade to an existing insider position.

The reported ownership includes 500,000 RSUs granted on February 6, 2026 and the remainder of 750,000 RSUs granted on August 8, 2025. The February grant vests 100,000 RSUs on February 6, 2027, then 50,000 RSUs every six months after that cliff date. So part of the stake still depends on future service.

The August 8, 2025 grant has 125,000 RSUs set to vest on March 12, 2027, September 12, 2027 and March 12, 2028. The caution is that this filing shows one insider transaction and future vesting, not customer demand or revenue progress. It does not answer the operating questions.

Stock perps: every US stock that trades as a perpetual future, by leverage, live

What's next The next dated milestone is February 6, 2027, when 100,000 RSUs from the February 6, 2026 grant are set to vest if Zhang stays in that role. If that vesting happens, reported ownership rises again.

After that, 125,000 RSUs are scheduled for March 12, 2027, September 12, 2027 and March 12, 2028 from the August 8, 2025 grant. Those dates give investors a clearer timeline for changes in reported ownership.

More from OptimistFi APLD stock: the Applied Digital thesis, its status and the next test to watch Stock research on every company OptimistFi covers From OptimistFi Perps Perp funding rates live: what longs and shorts pay on every venue Stock perps vs tokenized stocks: how US shares trade around the clock Weekend market prices: US stock indexes, gold and oil now Perps news: leveraged stocks, gold, FX and crypto on-chain Prop firms that fund crypto and stock perps traders: rules, prices and payouts Top perps movers today: stocks, commodities, FX and indices Sources SEC Form 4 — Applied Digital Corp. Form 4 reporting Jason Gechen Zhang's 300,000-share purchase on 2026-10-16 and 2,839,227 shares held afterward. Read the full OptimistFi thesis on Applied Digital Corp.: https://optimistfi.com/stocks/APLD

See what would break the Applied Digital Corp. thesis and track it live on the OptimistFi Thesis-Break Engine.

Browse every company OptimistFi covers at optimistfi.com/stocks, or read the latest evidence-first research.

The full Applied Digital Corp. investment case, its status and the next test to watch live on the Applied Digital Corp. thesis page.

Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.

Cipher Digital just paired a massive debt raise with a move that pulls shareholder dilution into the present rather than the future, and the market is punishing the stock hard. Whether signed hyperscale leases can grow fast enough to absorb…

A fresh financing package is weighing heavily on Cipher Digital (NASDAQ:CIFR), a data center developer racing to build campuses for hyperscale tenants. Cipher Digital stock is down 14% to $11.20 in morning trading after the company paired a new convertible debt raise with an exchange of older notes for shares.

Meanwhile, Applied Digital (NASDAQ:APLD) stock is down. 5% to $22.11, a smaller drop than the slide in Cipher Digital stock but still a heavy one for a fellow landlord to hyperscale tenants. Both companies share a corner of the market with Core Scientific (NASDAQ:CORZ), another developer that has shifted from digital-asset mining toward AI data center leasing.

Two funds show how contained the damage is. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.1% to $777.59, a nearly flat reading for the broad market. Sector exposure looks only a little weaker, with the Global X Data Center & Digital Infrastructure ETF (NASDAQ:DTCR) down 0.6% to $27.57.

Convertible Raise and Note Swap Rattle Cipher Digital Cipher Digital announced a proposed private offering of $850 million of convertible senior notes, together with a concurrent exchange of existing debt securities for common shares.

That second piece matters more for shareholders, because the exchange moves debt onto the equity side right away, ahead of the securities’ maturity, and every share issued in the swap expands the base that future earnings must be spread across.

Share Exchange Pulls Dilution Forward As a developer, Cipher Digital builds data centers. It leases them to hyperscale tenants under long-term agreements, funding construction through project-level secured bonds and parent-level convertible notes. Parent-level raises affect share count, so this deal reaches equity holders more directly than a site-level bond would.

A standard convertible postpones dilution until noteholders convert, which may never happen if the stock stays below the conversion threshold, but exchanging older notes for shares brings that dilution into the present, which helps explain why the reaction is sharper than a plain debt deal might draw.

Signed Leases Anchor the Bull Case Cipher Digital reported Q2 2026 results in early August, and the operating update gave supporters something concrete. Its Black Pearl campus delivered initial capacity ahead of schedule, with rent at that site commencing in August. Barber Lake, a second campus, is expected to begin paying rent in October.

Supporters argue the contracted hyperscale leases are already signed and scaling up, and the financing funds the expansion that turns them into rent-paying capacity with predictable cash flow. The power, cooling, and networking suppliers riding the same AI data center wave are the subject of a free report we put together, here. Skeptics see rising debt and a climbing share count raising the bar lease revenue must clear, with any campus delay stretching that timeline as interest keeps accruing.

What to Watch Next The unresolved question for Cipher Digital is whether lease revenue grows fast enough to outrun the share count this exchange creates. Investors should monitor for whether Barber Lake rent begins on schedule, since each campus that starts paying narrows the gap between debt costs and income.

The final terms of the offering and the exchange can show how much new stock the deal ultimately produces. Holders of Applied Digital and Core Scientific shares could look for signs that similar dilutive raises are spreading across the group. Steady lease grows could support Cipher Digital shares, but investors should scale their holdings carefully given the chance of further capital raises.

Contact [email protected] for any questions or corrections.

Securing gigawatt-scale power assets is one of the biggest bottlenecks for global artificial intelligence (AI) infrastructure, and the market may be mispricing the solution. Advanced computing hardware no longer represents the main obstacle for major technology sector companies; instead, access to reliable sovereign energy has taken its place.

Applied Digital Today

$23.15 -0.53 (-2.25%)

As of 09:38 AM Eastern

This is a fair market value price provided by Massive. Learn more.

$19.00▼

$50.72$62.25

Data center operators are increasingly valued on secured forward capacity rather than trailing revenue. Applied Digital NASDAQ: APLD recently secured a site for a one-gigawatt AI campus in Finland, adding to a domestic portfolio that already includes billions in contracted revenue.

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By packaging the most difficult components of international infrastructure expansion, regulatory approval, utility access, and real estate, Applied Digital is transforming its portfolio into a turnkey hyperscaler target. This dynamic sets the stage for an upward repricing that could challenge outdated bearish positioning. Investors tracking the AI infrastructure space may want to look beyond current cash burn and evaluate the monetization cycle of secured megawatt capacity.

Overcoming the AI Power Grid BottleneckThe constraint on scaling artificial intelligence models is increasingly tied to access to electricity. While software companies command premium valuation multiples, the physical infrastructure supporting those models requires immense capital and years of permitting. Initial power availability at the Finland campus is expected in 2028.

The Nordic region provides established energy grids and a naturally cooler climate, which can reduce the cooling burden for high-density server racks. This geographical expansion fundamentally changes Applied Digital's long-term growth trajectory. Building a gigawatt AI Factory campus from the ground up gives global hyperscalers exactly what they lack: time and space. Tech conglomerates hold deep cash reserves but cannot instantly conjure grid-connected land.

Developing a site involves environmental studies, local zoning negotiations, and complex power purchase agreements. By securing the site now, Applied Digital bypasses the fiercest competition for stateside grid capacity and establishes a European stronghold. Operators with permitted, high-capacity land rights have a distinct structural advantage over developers just entering the procurement cycle.

Why Trailing Revenue Misses the Big AI PictureValuing infrastructure companies during a rapid scale-up phase requires looking past near-term margin compression. Applied Digital currently carries a market capitalization near $6.8 billion. Bears point to a debt-to-equity ratio of about 2.88 and negative net margins as signs of weakness. Those metrics tell an incomplete story.

The fiscal first-quarter 2027 earnings release revealed roughly $36 billion in contracted revenue over initial lease terms. A backlog of that magnitude significantly derisks the capital expenditures required to build out both domestic campuses and the new Finland site. First-quarter revenue grew about 322% year over year to roughly $342 million, showing the operational model scales effectively before factoring in the international pipeline.

The valuation can still appear steep when analyzed solely on trailing revenue. But as Applied Digital's contracted backlog converts to recognized income, forward valuation multiples compress rapidly. The market is pricing the stock based on today's construction costs rather than the guaranteed cash flows locked in by long-term tenant agreements.

Activating Domestic Megawatts Validates the ModelWhile the European expansion offers a long-term growth runway, domestic operations are monetizing power now. Before the Finland announcement, Applied Digital brought roughly 75 megawatts online at its Polaris Forge 1 facility. Combined with broader network activations totaling about 250 megawatts, Applied Digital is demonstrating its ability to turn secured land rights into revenue-generating critical IT load.

Delivering infrastructure on schedule is notoriously difficult because supply chain delays affect specialized components like transformers and switchgear. Consistently activating megawatt blocks builds confidence with institutional tenants. Hyperscalers require reliable partners. When an operator successfully navigates the physical buildout and powers up a facility, they transition from a speculative developer to a tier-one vendor. Securing around 1.41 gigawatts of leased domestic IT load validates Applied Digital's engineering capabilities and builds credibility for the upcoming Nordic development.

Institutional Buyers Front Run the Short TrapApplied Digital Stock Forecast Today12-Month Stock Price Forecast:
$62.25
162.88% Upside

Moderate Buy
Based on 19 Analyst Ratings

Current Price$23.68High Forecast$90.00Average Forecast$62.25Low Forecast$22.00Applied Digital Stock Forecast Details

A significant portion of the market remains skeptical. Short interest hovers around 21% of the float. Bearish traders appear focused on current cash burn and the execution risks associated with funding the European buildout. Short positioning relies heavily on the assumption that infrastructure operators will dilute shareholders to fund ongoing capital requirements.

This thesis ignores how modern data center financing works. Hyperscalers often offer substantial prepayments or enter joint ventures to secure capacity. As these non-dilutive funding structures materialize, the bear case breaks down.

Institutional money is already positioning for this shift. Call option volume spiked ahead of the recent corporate announcements, and funds like Two Seas Capital LP executed block purchases of shares just before the international expansion made headlines.

When Applied Digital holds billions in contracted backlog and continues to bring new capacity online, heavy short interest creates the potential for volatile covering events. Any announcement of a hyperscaler lease for the Finland site could force short sellers to exit their positions quickly, driving rapid price appreciation.

The Endgame for Turnkey Infrastructure OperatorsThe endgame for independent data center developers often leads to consolidation. Large technology firms require turnkey infrastructure to deploy accelerated computing hardware at scale. By navigating the utility and real estate acquisition phases in a stable European jurisdiction, Applied Digital has packaged the hardest parts of expansion into a single asset.

A valuation near $6.9 billion relative to an operational portfolio of 1.41 gigawatts, plus a 1-gigawatt international pipeline, creates a noticeable disconnect compared with recent private-market transactions in the infrastructure sector. Gigawatt-scale capacity inherently forces a valuation premium because the replacement cost, measured in both dollars and years, is exceptionally high.

Investors tracking the tech sector may want to monitor how quickly Applied Digital formalizes hyperscaler leases for the Finland site. Those with an appetite for volatility could watch future joint venture announcements that ease capital expenditure concerns. Cautious investors might prefer to wait and see how management structures the financing for the anticipated 2028 initial power availability before establishing a position.

Should You Invest $1,000 in Applied Digital Right Now?Before you consider Applied Digital, you'll want to hear this.

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Applied Digital has shed more than half its value from its peak, yet analysts keep piling on buy ratings with targets that sit above where the stock was trading at its best. One lead analyst believes the selloff created a…

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Applied Digital (NASDAQ:APLD) currently trades at $23.85, while analysts’ average price target stands at $65.37. That gap implies 174% upside.

Applied Digital builds and rents AI data center campuses to hyperscalers. It has roughly 1.41 GW of critical IT load rents across five campuses and about $36B in contracted lease revenue over initial 15-year terms. A legacy segment hosts 286 megawatts of Bitcoin (CRYPTO:BTC) mining in North Dakota.

The most bullish call comes from Lake Street Capital Markets. Lead analyst Rob Brown rates the shares Buy with a Street-high $90.00 target, which implies 277% upside. Even the consensus target sits far beyond a 40% gap, so the bull case deserves a hard look.

A Slide of Nearly 53% Leaves Applied Digital Stranded Below Its Targets The decline came as the company leaned on debt-funded growth. Shares are down 52.99% from a 52-week high of $50.73. The stock lost 15.75% over the past month.

The latest quarterly report beat adjusted expectations. Revenue reached $341.9 million, and adjusted loss of -$0.01 per share exceeded the -$0.3023 estimate. GAAP net loss was $221 million, or $0.76 per share, including $65.4 million of stock-based compensation and a $67.5 million non-cash investment loss. Debt sits near $6.4 billion against $1.6 billion of equity. Capex hit $2.07B in the quarter.

Estimates also slid. Over 60 days, the average fiscal 2028 EPS forecast moved from 0.1150 to -0.4835.

Lake Street’s $90 Thesis Rests on Power and Pricing Lake Street’s case rests on three pillars: monetizing HPC capacity with tier-one hyperscalers, a power pipeline that brings dense AI compute online ahead of rivals stuck in grid queues, and margin expansion as revenue shifts from crypto hosting toward AI infrastructure leasing. HPC hosting already generates a reported 89% NOI margin.

Management has given analysts specific targets. The company expects to place over 600 megawatts into service over the next 12 months, compared with 250 megawatts over the past 12. It also expects about 250 megawatts of expansion rents by calendar year end at what it called “definitely north of 15% plus increases on the lease rate.” Louisiana and Alabama revenue should begin in the first half of calendar 2027, and the long-term goal is 3.5 to 4 gigawatts by the end of calendar 2030.

Funding costs are falling too. The latest notes carry a 7% coupon, down from 9.25% on earlier notes.

Coverage leans bullish: two Strong Buy, 11 Buy, and two Hold ratings across 15 analysts. The consensus target sits above the stock’s 52-week high, and one analyst cut fiscal 2028 EPS estimates over the trailing 30 days.

Every AI Infrastructure Peer Fell This Month, Most by More Applied Digital held up better than its three closest rivals over the past month in a broader group selloff.

IREN (NASDAQ:IREN) fell 23.91% in a month and 40.57% over a year. At $35.71 against a $78.14 target, implied upside is 118.82%. Ratings include 13 Buy and five Hold alongside two Strong Buy calls. That upside trails Applied Digital’s.

Cipher Mining (NASDAQ:CIFR) dropped 27.07% in a month. At $13.50 versus a $30.48 target, it implies 125.78% upside, with 15 Buy and two Hold ratings alongside five Strong Buy calls.

TeraWulf (NASDAQ:WULF) is up 10.98% over a year but lost 23.57% in a month. At $13.65 versus a $33.48 target, implied upside is 145.27%. Its 18 Buy and one Hold ratings, alongside five Strong Buy calls, make the most bullish mix in the group.

Applied Digital carries the largest implied upside of the four. Analysts see it as the most mispriced name in the space, and those targets are estimates with no guarantee attached.

Applied Digital Lags the S&P 500 by Double Digits At $23.85, the stock is 2.73% lower year to date, while the S&P 500 has gained 13.5%. Over one year, the index posted a 14.98% gain.

The $65.37 consensus from 15 analysts implies 174% upside. A beta of 6.0 means the path will be volatile in either direction.

Contracts Make the Case, but the Balance Sheet Sets the Pace Applied Digital’s bull case improves if it delivers those 600-plus megawatts on schedule, signs expansion rents at premium rates, and finances campuses on investment-grade terms. The thesis weakens if construction slips, capital raises dilute shareholders, or hyperscaler concentration becomes a liability.

The $36 billion contracted base and falling borrowing costs support recovery, though $90 requires near-flawless execution. The consensus target looks more realistic as a multi-year destination (we highlighted seven of the picks-and-shovels names behind this AI data-center expansion, from power to cooling, in a free report you can grab here).

Contact [email protected] for any questions or corrections.

It may be hard to imagine Applied Digital NASDAQ: APLD as having a moat, but it does: regulatory hurdles and local pushback. While many hyperscale projects are stalling or delayed, Applied Digital’s projects are underway and advancing, aided by favorable conditions in the territories where it operates.

Applied Digital Today

$23.85 +0.04 (+0.17%)

As of 10/8/2026 04:00 PM Eastern

$19.00▼

$50.72$60.27

Applied Digital’s moat is driven by numerous regulatory and other barriers to entry that keep new operators out of the market.

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The more regulatory pushback, the bigger the moat, and that's happening even in states like Alabama, where the company has a project in progress. Applied Digital’s Alabama project is protected by timing and covenants; new business isn’t. While there is a risk that neoclouds like Applied Digital will become obsolete, it seems unlikely, given this dynamic.

We know there is demand for advanced computing, and now there’s a cap on how many data centers can be built; operators with existing infrastructure are best positioned to capture and retain market share, command premium pricing, and monetize their assets over the long term. Inference will drive that monetization. Estimates suggest that inference reached a tipping point this year, with inference workloads now requiring 1.5x to 2x as much computing power as AI model training, with demand expected to continue growing, doubling or more by 2030.

Applied Digital Advances Strategy, Brings Capacity OnlineApplied Digital had a great Q1 of its fiscal 2027 (FY2027), no matter how you look at it. The top line came in at $341.9 million, up more than 320% year over year and 194% above analyst expectations. Revenue included an unexpected one-off boost from tenant fit-out services, but all the better. Even adjusted, revenue outpaced the consensus by a wide margin, underpinned by new capacity. The company has brought another 75 MW online since fiscal Q4 2026, bringing total capacity at Polaris Forge 1 to 250 MW, expected to reach 300 MW by year-end and nearly 4 GW by 2030.

The impact of services revenue and capacity gains was reflected in the earnings report. The company continues to post losses, but they shrank considerably, with an adjusted loss per share of 1 cent, nearly 30 cents better than consensus forecasts. Earnings strength is also reflected in the balance sheet, with the company well capitalized at nearly $3 billion in cash. Current assets are declining, but the value is shifting to property and equipment, thereby lifting the company’s total assets. Liabilities are also increasing—the bad news—but leverage remains manageable while cash flow improves.

Analysts Validate Applied Digital’s Results, Reaffirm Outlook for Triple-Digit UpsideAnalysts' responses following the release were mixed, with most praising the beat, new capacity, and outlook, and calling the strategy on track. However, a few analysts were less bullish, pointing out that much of the revenue beat came from one-time tenant fit-out services. In Needham’s view, the company won’t monetize significant portions of its backlog until 2028.

Despite mixed analyst commentary, all price targets revised after the release either aligned with or exceeded the consensus, which forecasts more than 160% upside relative to critical support. Institutions also reflect confidence, owning about 65% of the stock and buying aggressively over the trailing 12 months.

Price action has been mixed, with the stock falling after the report. The good news is that the market is trading at rock-bottom levels and showing support near $22.50. This level aligns with prior price action and has been a key pivot for years, a likely floor for this market.

Applied Digital Corporation (APLD) Price Chart for Friday, October, 9, 2026

Indicators such as the stochastic and MACD reflect buying support, strengthening the case for APLD’s bottom. A move to fresh lows is unlikely but not impossible; even so, it would not be a deal breaker for bullish traders.

Applied Digital Is an Execution Story With Significant PotentialThe market may be misinterpreting Applied Digital's ability to scale. It has a moat, and it also has access to energy that others don’t. North Dakota, specifically, offers lower costs and ample offtake capacity near APLD projects. With this in play, data center demand can easily shift in Applied Digital's favor as consumers seek capacity, enabling it to accelerate its build. The market gets the company right in that its ballooning debt poses a risk. However, leverage remains manageable, and cash flow is improving, but execution is now critical. The stock's price will reflect missteps and delays.

Applied Digital’s growth outlook is robust. Analyst consensus forecasts moderately high double-digit growth over the next five years, including a spike into triple digits in 2028. The question is whether the forecasts are right, and the metrics suggest they’re too cautious. The company forecasts a 13x capacity increase by 2030, backed up by hard contracts with hyperscale clients; consensus forecasts less than a 10x increase in revenue.

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Key Takeaways Applied Digital expects to place more than 600 MW into service over the next 12 months.APLD targets lease-rate increases above 15% as customers seek capacity through 2029.Applied Digital is broadening financing options while advancing U.S. and Finland projects. Applied Digital Corporation (APLD - Free Report) used its fiscal first-quarter 2027 earnings call to shift attention toward execution, capacity delivery and lease economics. Management emphasized converting contracted capacity into operating assets while selectively adding opportunities.

The call also highlighted higher pricing ambitions, broader financing options and a measured move into Europe.

APLD Targets Faster Capacity DeliveryChairman and chief executive officer Wes Cummins said Applied Digital has about $36 billion of contracted revenue across five campuses. The company expects to place more than 600 megawatts into service over the next 12 months versus 250 megawatts over the prior 12 months.

Polaris Forge 1 now has 250 megawatts of critical IT load across two buildings. Initial operations at Polaris Forge 2 are expected to lift delivered North Dakota capacity to 300 megawatts by year-end 2026.

Management also set a goal of 3.5 to 4 gigawatts by the end of 2030. Reaching the upper end would require about 1 gigawatt of annual deliveries in 2029 and 2030.

Applied Digital Pushes Premium Lease PricingCummins said demand remains extremely robust, with customers seeking 2027 capacity and activity extending into 2028 and 2029. He expects roughly 250 megawatts of expansion leases by calendar year-end.

In Q&A, a Craig-Hallum analyst asked how management defines premium pricing. Cummins said the company is targeting lease-rate increases of more than 15%, with some deals also carrying longer durations.

Applied Digital continues to prioritize 15-year take-or-pay leases with Tier 1 investment-grade hyperscalers. Cummins said the company is becoming more selective because build capacity is limited and customer credit quality matters.

APLD Builds Out Its Power PositionPower remains the industry’s central gating factor, according to Cummins. Applied Digital signed a long-term power purchase agreement tied to an approximately 1,200-megawatt natural gas facility Base Electron is developing next to Polaris Forge 3, with deliveries expected in 2030.

A Lake Street Capital Markets analyst asked how that relationship supports expansion. Cummins said Base Electron could also add generation in eastern North Dakota and around Jamestown.

Management also stressed supply-chain planning. Cummins said Applied Digital locked in key component capacity nearly two years ago, including full factory output from certain suppliers for a four-year period.

Applied Digital Broadens Funding OptionsChief financial officer Saidal Mohmand said the 400 megawatts at Polaris Forge 1 and 200 megawatts at Polaris Forge 2 are fully funded. The latest $1.59 billion secured-note tranche priced at 7%, below the 9.25% coupon on earlier notes.

For Polaris Forge 3 and the two Delta Forge campuses, Mohmand said investment-grade tenants open financing choices beyond high yield, including project finance and investment-grade bonds.

Total revenues reached $341.9 million versus the $134.1 million Zacks Consensus Estimate. The reported loss was $0.76 per share versus the consensus loss of $0.26, while adjusted loss was $0.01 and adjusted EBITDA was $64.4 million.

APLD Tests Finland With Limited ExposureApplied Digital’s Finland project marks its first move outside the United States. Cummins said the company bought the site and has options tied to future power additions, with an off-ramp before further payments.

The first 100 megawatts are expected in 2028, with capacity ramping to 1 gigawatt through 2031. Cummins said the project followed about 12 months of market work and reviews of 30 to 40 sites.

A B. Riley analyst asked about the commercial structure and risk. Cummins said the project offers substantial upside optionality with limited initial financial exposure, while near-term priorities remain centered on U.S. projects.

Applied Digital Keeps Focus on ExecutionManagement’s tone centered on execution rather than simply adding contracted megawatts. Cummins emphasized delivering buildings on schedule, expanding established campuses and using customer quality to support better lease and financing terms.

The strategy remains focused on large, long-lived AI factory campuses, while ChronoScale pursues smaller capacity opportunities separately. Construction scale, power access and financing discipline remain central to the fiscal 2027 agenda.

What Zacks Signals Say About APLDAPLD carries a Zacks Rank #5 (Strong Sell). Its Style Scores are F for Value, B for Growth and A for Momentum, while its VGM Score is D. Under the Zacks framework, favorable Growth and Momentum readings are outweighed by the weak rank and weaker Value and VGM profiles.

The Style Scores complement the Zacks Rank, with A and B grades most effective when paired with Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks. The Rank #5 reflects an unfavorable estimate-revision setup, but the Zacks Rank can change as analysts revise estimates after the just-reported results. 

You can see the complete list of today’s Zacks #1 Rank stocks here.

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APLD equity

Buy Applied Digital (APLD). Q1 showed real traction: revenue >4x YoY and only a 1-cent per-share loss, plus new 75MW capacity coming online. Needham cut the target mainly for financing/capex overhangs, which the market is already pricing—so the upside is in balance-sheet execution as lease cash flows start to stabilize. Thesis killer: A financing cycle forces repeated dilutive equity or covenant-driven restructuring before lease revenue meaningfully ramps, keeping the discount permanently.

Key Risk: Dilution or covenant trouble from continued expensive financing before lease cash flows ramp.

AI data-center lease beneficiaries

Buy a basket proxy for hyperscaler AI infrastructure demand: Equinix (EQIX). The news reinforces that hyperscalers keep demanding power-and-capacity buildout; EQIX is positioned to monetize that demand with more mature cash flows and less “build-and-fund” execution risk than APLD. Thesis killer: AI infrastructure demand slows or pricing power weakens, causing lease growth to disappoint and compress multiples.

Key Risk: AI data-center demand/pricing weakens enough to stall lease growth and compress margins.

Needham analyst John Todaro trimmed his price target on Applied Digital APLD on October 8th even though the AI infrastructure firm reported a blockbuster Q1 last evening.

The company more than quadrupled its revenue on a year-over-year basis to $342 million, on a per share loss of just one cent, miles above $116 million and 29 cents per share that analysts had called for.  

Despite the remarkable print, Applied Digital shares are trading at less than half their price in late May.

Todaro trimmed his price target from $83 to $70 primarily to reflect near-term financing overhangs and capital expenditure risks.

While Applied Digital’s top-line growth was extraordinary, the infrastructure builder posted a net loss of $221 million due to rising interest expenses and heavy build-out costs across its data center campuses.

Funding massive HPC and AI capacity requires substantial debt and capital raises, which has kept retail and institutional investors cautious.

Needham adjusted its price objective on APLD stock to account for these elevated borrowing costs and potential dilution – acknowledging that sentiment remains heavily constrained by the balance sheet overhead required to bring new gigawatt capacity online.

Investors should note, however, that Needham’s downwardly revised $70 price target still signals potential upside of more than 200% in Applied Digital shares.

The investment firm maintained its “Buy” rating on the company – citing its expanding $36 billion lease pipeline and its crucial role in providing next-generation HPC infrastructure to hyperscalers.

APLD delivered the second 75-megawatt phase of Building 2 at its Polaris Forge 1 campus on Oct. 1st, proving that new data center capacity is coming online much faster than expected.

As long-term leases begin generating steady cash flows, Needham expects the market to eventually revalue the company like a stabilized digital infrastructure landlord.

APLD shares’ longer-term trajectory will now depend more on balance sheet execution.

Hyperscaler appetite for AI compute power is undeniable – but the Nasdaq-listed firm must show that contracted rental revenue will materialize fast enough to service its expanding debt load.

If management successfully converts its 1.41 gigawatt lease book into recurring operating cash flow without issuing dilutive equity, the stock’s steep valuation discount could disappear quickly.

Conversely, further debt rate pressure remains the primary swing factor keeping shares suppressed.

For long-term investors, the current sell-off presents a high-conviction risk-reward entry backed by fundamental multi-year demand drivers.

All in all, while not as bullish as Needham, other Wall Street firms are sticking with their bullish view on Applied Digital as well.

The consensus rating on APLD sits at Buy currently, with a mean price target of about $63, which suggests massive upside potential from here.

Applied Digital (NASDAQ:APLD – Get Free Report) issued its quarterly earnings data on Wednesday. The company reported ($0.01) earnings per share for the quarter, topping the consensus estimate of ($0.30) by $0.29, FiscalAI reports. The company had revenue of $300.39 million for the quarter, compared to analysts’ expectations of $116.29 million. Applied Digital had a negative return on equity of 16.42% and a negative net margin of 37.78%.The firm’s revenue for the quarter was up 367.8% on a year-over-year basis. During the same period in the previous year, the firm posted ($0.03) earnings per share.

Here are the key takeaways from Applied Digital’s conference call:

Contracted growth remains substantial: Applied Digital reported approximately $36 billion of contracted revenue across five campuses and expects to place more than 600 megawatts into service over the next 12 months, versus 250 megawatts in the prior 12-month period. The company expects roughly 250 megawatts of expansion leases to be executed by year-end at materially higher pricing, potentially including lease rates more than 15% above prior agreements and longer durations. Execution is advancing in North Dakota, with 250 megawatts of critical IT capacity fully ready for service at Polaris Forge 1 and total North Dakota capacity expected to reach 300 megawatts by year-end. A 1,200-megawatt power purchase agreement with Base Electron is expected to support future expansion beginning in 2030. Financing conditions improved for the company’s projects: Applied Digital issued $1.59 billion of senior secured notes at a 7% coupon, below the 9.25% coupon on its earlier Polaris Forge 1 debt, and said investment-grade tenants could provide access to lower-cost project and bond financing. Headline profitability remains weak: the company reported a $221 million GAAP net loss attributable to common stockholders, or $0.76 per share, while ending the quarter with approximately $6.4 billion of debt against $2.9 billion of cash and $0.7 billion of restricted cash. Applied Digital Stock Down 6.0% NASDAQ:APLD opened at $23.81 on Thursday. Applied Digital has a twelve month low of $19.00 and a twelve month high of $50.72. The company has a market cap of $6.94 billion, a price-to-earnings ratio of -26.75 and a beta of 5.99. The stock has a fifty day simple moving average of $27.15 and a 200-day simple moving average of $32.54. The company has a current ratio of 4.01, a quick ratio of 4.01 and a debt-to-equity ratio of 2.88.

Trending Headlines about Applied Digital Here are the key news stories impacting Applied Digital this week: Positive Sentiment: Revenue substantially exceeded expectations. Fiscal Q1 revenue rose 322% year over year to $341.9 million, while several reports cited adjusted revenue of approximately $300.4 million versus estimates near $111 million–$116 million. Adjusted loss of $0.01 per share also beat expectations for a loss of roughly $0.26–$0.30. Applied Digital Reports Fiscal First Quarter 2027 Results Positive Sentiment: AI data-center demand is translating into growth and contracted visibility. Applied Digital reported approximately 1.41 gigawatts of leased critical IT load across five campuses and about $36 billion in contracted revenue over initial lease terms. Data Center Hosting generated $37.8 million of revenue and $13.3 million in segment operating profit. Applied Digital’s revenue soars, loss widens on growing AI investments Positive Sentiment: The Finland expansion broadens the company’s long-term growth opportunity. Applied Digital secured access to up to 1 gigawatt of potential power capacity for its first international AI campus, giving it a foothold in the Nordic market while discussions with hyperscale customers continue. Applied Digital climbs on securing 1GW power site for European AI campus Neutral Sentiment: Trading activity was unusually bullish before the report, with call-option volume well above normal, although this reflects positioning rather than a fundamental change in the business. Negative Sentiment: Profitability remains a major concern. GAAP net loss was $184.1 million, or $0.82 per share, and the loss widened as Applied Digital increased investment to meet AI infrastructure demand. The company continues to report negative margins and return on equity. Applied Digital Revenue Jumps 322% to $341.9 Million Negative Sentiment: Leverage and capital requirements could limit upside. The company held approximately $3.7 billion in cash, cash equivalents and restricted cash against $6.4 billion of debt, while continued campus construction and AI-related spending raise financing and execution risks. Negative Sentiment: Insider activity reported over the past six months consisted of selling rather than buying, which may weigh on investor sentiment. Analyst Ratings Changes APLD has been the subject of several recent analyst reports. Northland Securities set a $82.00 price objective on shares of Applied Digital and gave the stock an “outperform” rating in a research note on Wednesday, June 17th. Weiss Ratings reissued a “sell (d-)” rating on shares of Applied Digital in a research note on Tuesday, July 21st. Zacks Research cut shares of Applied Digital from a “hold” rating to a “strong sell” rating in a research note on Wednesday, August 26th. Rothschild & Co Redburn set a $22.00 price target on shares of Applied Digital and gave the company a “neutral” rating in a report on Monday, September 21st. Finally, Wells Fargo & Company reissued an “overweight” rating on shares of Applied Digital in a research report on Thursday. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $60.88.

Read Our Latest Research Report on Applied Digital

Insider Activity at Applied Digital In other news, Director Richard Nottenburg sold 75,000 shares of the company’s stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $31.15, for a total value of $2,336,250.00. Following the transaction, the director directly owned 133,378 shares in the company, valued at approximately $4,154,724.70. This represents a 35.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 9.50% of the company’s stock.

Applied Digital Company Profile (Get Free Report)

Applied Digital Corporation (NASDAQ: APLD) develops and operates digital infrastructure designed to support high-performance computing, artificial intelligence and other data-intensive applications. The company provides data-center capacity and related services to customers that require substantial computing power and electricity.

The company’s business has included hosting infrastructure for cryptocurrency-mining operations and, increasingly, developing facilities for artificial intelligence and high-performance computing workloads.

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Applied Digital (NASDAQ:APLD) reported first-quarter revenue of $341.9 million, beating analysts’ expectations of $111.19 million.

Revenue for the fiscal first quarter ended August 31 rose 322% from the comparable period a year earlier, reflecting growing demand for large-scale computing infrastructure used to support AI applications.

Adjusted earnings per share were a loss of $0.01, beating the analyst estimate of a $0.27 loss per share, while adjusted net loss was $4.1 million.

Net loss attributable to common stockholders was $221 million, or $0.76 per basic and diluted share, compared with the adjusted loss that excludes the results of ChronoScale, its majority-owned accelerated-compute platform.

Adjusted earnings before interest, taxes, depreciation and amortization, a measure of operating profitability, were $64.4 million, while adjusted revenue was $300.4 million.

Applied Digital signed a 15-year lease for 210 megawatts at its Delta Forge 2 facility with a large investment-grade hyperscaler, representing about $5.2 billion of contracted revenue over the base term.

The company also brought a second 75-megawatt phase of Building 2 at its Polaris Forge 1 campus into service, taking total operational capacity there to 250 megawatts.

Applied Digital raised $1.59 billion through senior secured notes to fund construction of a 150-megawatt HPC building at Polaris Forge 1 and repay a $300 million bridge facility.

The company has also secured access to up to about 1 gigawatt of potential power capacity in Finland, marking its first expansion outside the US as it explores opportunities in European AI infrastructure.

Applied Digital expects its North Dakota campuses to reach 300 megawatts of delivered critical IT capacity by the end of 2026, as AI infrastructure demand continues to drive investment in power and data centers.

Applied Digital Corporation (APLD) Q1 2027 Earnings Call October 7, 2026 5:00 PM EDT

Company Participants

Wesley Cummins - Chairman, CEO, Secretary & Treasurer
Mohammad Saidal Mohmand - Chief Financial Officer

Conference Call Participants

Matt Glover - Gateway Group, Inc.
Mike Grondahl - Northland Capital Markets, Research Division
Nick Giles - B. Riley Securities, Inc., Research Division
Derrick Whitfield - Texas Capital Securities, Research Division
Robert Brown - Lake Street Capital Markets, LLC, Research Division
George Sutton - Craig-Hallum Capital Group LLC, Research Division
Darren Paul Aftahi - Lucid Capital Markets, LLC, Research Division
John Todaro - Needham & Company, LLC, Research Division
Michael Donovan - Compass Point Research & Trading, LLC, Research Division

Presentation

Operator

Good afternoon, and welcome to Applied Digital's Fiscal First Quarter 2027 Conference Call. My name is Pascal Berman, and I will be your operator today.

Before this call, Applied Digital issued its financial results for the fiscal first quarter ended August 31, 2026, in a press release, a copy of which has been furnished in a report on Form 8-K filed with the Securities and Exchange Commission, or SEC, and will be available in the Investor Relations section of the company's website.

Joining us on today's call are Applied Digital's Chairman and CEO, Wes Cummins; and CFO, Saidal Mohmand. Following their remarks, we will open the call for discussions. Before we begin, Matt Glover from Gateway Group will make a brief introductory statement.

Mr. Glover, you may begin.

Matt Glover
Gateway Group, Inc.

Thank you, Pascal. Hello, everyone, and welcome to Applied Digital's Fiscal First Quarter 2027 Conference Call. Before management begins formal remarks, we would like to remind everyone that some statements we're making today may be considered forward-looking statements under securities laws and involve a number of risks and uncertainties. As a result, we caution you that there are a number of factors, many of which are beyond

Applied Digital's first-quarter revenue more than quadrupled, while its net loss widened from a year earlier ​as the company stepped up investments to meet ‌growing demand for data center services.

DALLAS, Oct. 07, 2026 (GLOBE NEWSWIRE) -- Applied Digital Corporation (Nasdaq: APLD) ("Applied Digital" or the “Company"), a U.S. based designer, developer, owner, and operator of large-scale, purpose-built data centers engineered to support high-performance computing (“HPC”) workloads, including artificial intelligence (“AI”), machine learning, and other accelerated-compute applications, reported financial results for the fiscal first quarter ended August 31, 2026.

ChronoScale Holdings Corporation ("ChronoScale"), the Company’s majority-owned accelerated-compute platform, is a public company which owns and operates our historic cloud services business and its results are consolidated into our financial statements, but excluded in the non-GAAP financial measures set forth below. Unless otherwise specified, disclosures in this earnings release, including the below, reflect continuing operations only.

Fiscal First Quarter 2027 Financial Highlights

Revenues: $341.9 million, up 322% from the prior year comparable periodNet loss attributable to common stockholders: $221.0 millionNet loss attributable to common stockholders per basic and diluted share: $0.76Adjusted revenue: $300.4 millionAdjusted net loss: $4.1 millionAdjusted net loss per diluted share: $0.01Adjusted EBITDA: $64.4 millionNet Operating Income: $58.8 million Adjusted revenue, Adjusted net income (loss), Adjusted net income (loss) per diluted share, Adjusted EBITDA, and Net Operating Income are non-GAAP measures. A reconciliation of each of these Non-GAAP Measures to the most directly comparable financial measure presented in accordance with accounting principles generally accepted in the United States (“GAAP”) is set forth below. These non-GAAP measures exclude the results of ChronoScale. See “Reconciliation of GAAP to Non-GAAP Measures.”

Recent Highlights

As previously announced on June 8, 2026, signed a 210 MW, 15-year lease at Delta Forge 2 with the Company’s tier-one investment grade hyperscaler customer, representing approximately $5.2 billion of base-term contracted revenue.Delivered Phase 1 of Building 2 (75 MW) at Polaris Forge 1 Ready for Service on July 1, 2026, bringing total live capacity at the campus to 175 MW.Closed $1.59 billion of 7.000% Senior Secured Notes due 2031, issued at par through subsidiary APLD ComputeCo 3 LLC, to fund construction of the third HPC building (150 MW) at Polaris Forge 1 and to repay the $300 million bridge facility.ChronoScale announced plans with Microsoft for a 50 MW AI compute deployment in North America featuring NVIDIA GB300 NVL72 systems and liquid cooling. Subsequent to the Quarter

Delivered the second 75 MW phase of Building 2 at Polaris Forge 1 Ready for Service, bringing total live capacity at the campus to 250 MW.Secured up to approximately 1 GW of potential power capacity in Finland, establishing a strategic foothold in an emerging European AI market.Entered into a Power Purchase Agreement with Base Electron, for the purchase of capacity and energy from an approximately 1,200 MW natural gas-fired generation facility to be developed by Base Electron in North Dakota.Polaris Forge 1 was named Project of the Year by the Mid-America Economic Development Council, recognizing its economic impact, community investment, partnerships, and technological innovation.Through Applied Digital Cares, committed $350,000 in grants across five organizations in Oliver County, North Dakota, home to Polaris Forge 3, supporting first responders, schools, and community facilities. Management Commentary

“Our goal is to establish Applied Digital as the category leader in the design, construction, deployment, and operation of purpose-built AI factories,” said Wes Cummins, Chairman and Chief Executive Officer of Applied Digital. “We are building for the long term, with a clear focus on developing large-scale, sustainable AI factory campuses and securing durable, high-quality, long-term contracts with proven, tier-one, investment grade hyperscalers that are leaders in the AI industry.”

On October 1, 2026, the Company achieved Ready for Service for the second 75 MW phase of Building 2 at Polaris Forge 1, bringing fully operational critical IT load at the campus to 250 MW across two buildings and 10 data halls. The Company expects initial operations at Polaris Forge 2 in Harwood to increase delivered critical IT load across our North Dakota campuses to 300 MW by the end of calendar 2026, further demonstrating the Company's ability to execute against its development pipeline.

The Company also took its first step outside the United States, signing an agreement for up to approximately 1 GW of potential power capacity in Finland. Finland shares many of the characteristics that made North Dakota a compelling location for the Company's AI factories: a cool climate that supports efficient operations, access to abundant and reliable power, and room to scale. Management believes this agreement offers meaningful long-term potential while limiting the Company's initial exposure. While Applied Digital's near-term development strategy and execution priorities remain firmly centered on its growing U.S. portfolio, Finland presented itself to us as a measured, opportunistic step into a market that offers attractive long-term potential.

North Dakota remains central to the Company’s strategy. The Company believes the state’s low-cost power, abundant energy resources, low population density, and climate make it one of the most compelling locations in North America for AI factory development, and management expects additional hyperscalers to enter the Dakotas over time. As coastal and metro markets become increasingly constrained and more expensive, Applied Digital believes campuses in low-cost, power-rich regions can support stronger long-term terminal values and become more difficult to replicate.

Power remains the gating factor for AI infrastructure, and the Dakotas are among the few regions where meaningful new capacity can be added at scale. Base Electron Corp., an independent power producer in which Applied Digital holds an approximately 10% equity interest, is developing front-of-the-meter generation that could add multiple gigawatts of new power in the Dakotas over time. Although Base Electron operates independently, the Company believes this new supply source strengthens its ability to expand its Polaris Forge campuses on its own timeline and provides greater visibility into the power available to support future growth in the region.

“As new data center development becomes more difficult in certain markets, we believe the scarcity value of established, powered, and community-supported campuses increases,” Cummins said. “Put simply, we view every new restriction elsewhere as making what we already own harder to replicate. Our approach has always been simple: do it the right way. We don’t just build in communities. We build with them.”

Our community commitment is not abstract. Polaris Forge 1 in Ellendale, North Dakota, was recently named Project of the Year by the Mid-America Economic Development Council for its economic impact, community investment, partnerships, and technological innovation. At the campus, the Company’s use of excess regional grid capacity has returned more than $45 million in electricity credits to local ratepayers. In Center, North Dakota, home to Polaris Forge 3, Applied Digital Cares grants are funding a new sheriff’s deputy, school devices, ambulance and fire equipment, and community facilities. The Company believes this model of local partnership is increasingly important as permitting, power access, and community support become more critical to large-scale AI infrastructure development.

HPC Hosting Update

Applied Digital’s HPC Hosting Business designs, builds, and operates purpose-built AI Factory data centers. As of August 31, 2026, the Company has leases for approximately 1.41 GW of critical IT load across five campuses: Polaris Forge 1, 2, and 3 in North Dakota; Delta Forge 1 in Louisiana; and Delta Forge 2 in Alabama. Those leases represent approximately $36 billion of contracted revenue over their initial base terms, or approximately $86 billion if all renewal options are exercised. Polaris Forge 1 is leased to CoreWeave, Polaris Forge 2 to an investment-grade hyperscaler, and Delta Forge 1, Polaris Forge 3, and Delta Forge 2 to a tier-one investment-grade hyperscaler.

The first 100 MW building at Polaris Forge 1 became operational in October 2025. Building 2 (150 MW) was delivered in two 75 MW phases, the first on July 1, 2026 and the second on October 1 subsequent to quarter end, bringing live capacity at the campus to 250 MW. The third HPC building at Polaris Forge 1 (150 MW), along with Polaris Forge 2, Polaris Forge 3, Delta Forge 1, and Delta Forge 2, are in various stages of construction.

Revenue from our HPC Hosting business totaled $262.6 million for the quarter, including $65.8 million related to base rent, $183.5 million related to tenant fit-out services, and $13.3 million related to tenant recoveries. This resulted in $33.4 million of segment operating profit for the quarter ended August 31, 2026.

Data Center Hosting Update

Applied Digital’s Data Center Hosting Business operates data centers to provide energized space to crypto mining customers. As of August 31, 2026, the Company’s 106 MW facility in Jamestown, ND, and 180 MW facility in Ellendale, ND, were operating at full capacity.

During the three months ended August 31, 2026, the Company generated $37.8 million in revenue from the Data Center Hosting Business segment, compared to $37.9 million during the three months ended August 31, 2025. The results were materially consistent year over year due to stable operating conditions across the Company’s data center hosting facilities.

We are very pleased with our Data Center Hosting Business, which generated $13.3 million in segment operating profit for the three months ended August 31, 2026 on $111.9 million in reported assets at the end of the period.

ChronoScale Update

ChronoScale Holdings Corporation (Nasdaq: CHRN) is a publicly traded accelerated-compute platform in which Applied Digital owns approximately 96%. During the quarter, ChronoScale announced plans with Microsoft for a 50 MW AI compute deployment in North America featuring NVIDIA GB300 NVL72 systems and advanced liquid cooling.

The Company considers its Data Center Hosting Business and the HPC Hosting Business to represent its core operations for long-term strategic and performance evaluation purposes. Accordingly, although we consolidate ChronoScale’s financial results as our majority owned subsidiary, we excluded the results of ChronoScale, including its cloud services business, in our Non-GAAP results presented herein. See “Reconciliation of GAAP to Non-GAAP Measures.”

Financial Results from Operations for Fiscal First Quarter 2027

Operating Results

Services revenue in the fiscal first quarter 2027 was $262.8 million compared to $80.9 million, up 225% from the fiscal first quarter 2026. The increase was primarily due to an increase in tenant fit-out services of approximately $157.2 million, as well as $23.0 million in GPU hardware sales related to ChronoScale.

Data center rental and other revenue was $79.1 million for the three months ended August 31, 2026 compared to no revenue for the three months ended August 31, 2025, as our HPC Hosting Business commenced rental operations in the second quarter of fiscal year 2026. This quarter, we recognized $65.8 million in base rental revenue and $13.3 million related to tenant recoveries.

Services cost of revenues increased $186.9 million, or 318%, from $58.8 million for the three months ended August 31, 2025 to $245.7 million for the three months ended August 31, 2026. The increase in services cost of revenues was primarily due to an increase ofapproximately $151.1 million in expenses associated with tenant fit-out services for our HPC Hosting Business, as well as approximately $22.4 million associated with GPU hardware sales related to ChronoScale.

Data center rental and other cost of revenues for the three months ended August 31, 2026 were $43.9 million. The primary components included $22.4 million in depreciation and amortization expense on our operational AI Factories at our Polaris Forge 1 campus, $13.3 million in expenses which are reimbursable as tenant recoveries, and $7.8 million in personnel and other operating costs supporting our facilities.

Selling, general and administrative expenses in the fiscal first quarter 2027 were $114.7 million compared to $29.5 million, up 289% from the fiscal first quarter of 2026 driven by the Company’s overall business growth. This increase was primarily due to increases of $51.7 million in stock based compensation due to performance awards and the increase in headcount, $9.9 million in personnel expenses related to the increase in headcount, and $12.1 million in professional service expense primarily related to legal services provided on discrete transactions and projects, as well as general support of the business.

Interest expense increased $69.4 million, or 866%, from $8.0 million for the three months ended August 31, 2025, to $77.4 million for the three months ended August 31, 2026 due to an increase in debt arrangements between the periods.

Interest income increased $35.0 million, or 4,080%, from $0.9 million for the three months ended August 31, 2025 to $35.8 million for the three months ended August 31, 2026 due to an increase in funds held in interest-bearing accounts.

Loss on the change in fair value of derivatives was $49.5 million for the three months ended August 31, 2026, due to a decrease of $56.1 million in the fair value of our Babcock & Wilcox Enterprises, Inc. (“B&W”) common stock warrant and an increase of $6.6 million in the fair value of the derivative assets related to the preferred units and corresponding common units held by APLD HPC TopCo 2’s redeemable noncontrolling interest.

Loss on change in fair value of investment was $11.4 million for the three months ended August 31, 2026, due to a decrease in fair value of our investment in B&W common stock.

Net loss from discontinued operations was $16.1 million for the three months ended August 31, 2026 and represents the income statement activity related to the Ekso business at ChronoScale which is classified as held for sale and discontinued operations.

Net loss from continuing operations attributable to common stockholders for the fiscal first quarter 2027 was $221.0 million, or $0.76 per basic and diluted share. This compares to a net loss attributable to common stockholders from continuing operations of $18.5 million, or $0.07 per basic and diluted share for the fiscal first quarter of 2026.

Adjusted revenue, a non-GAAP financial measure, was $300.4 million for the fiscal first quarter 2027 compared to $64.2 million for the fiscal first quarter of 2026.

Adjusted net loss, a non-GAAP financial measure, was $4.1 million, or $0.01 per diluted share for the fiscal first quarter 2027. This compares to an adjusted net loss, a non-GAAP financial measure, of $7.6 million, or $0.03 per diluted share, for the fiscal first quarter of 2026.

Adjusted EBITDA, a non-GAAP financial measure, was $64.4 million for the fiscal first quarter 2027 compared to an Adjusted EBITDA of $0.5 million for the fiscal first quarter 2026.

Net Operating Income, a non-GAAP financial measure, was $58.8 million for the fiscal first quarter 2027.

For the details of how the Company defines these non-GAAP financial measures and the reconciliation thereof, please see "Reconciliation of GAAP to Non-GAAP Measures" below.

Balance Sheet

As of August 31, 2026, the Company had $3.7 billion in cash, cash equivalents, and restricted cash, along with $6.4 billion in debt.

Conference Call

As previously announced, Applied Digital will host a conference call today, October 7, 2026, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to discuss these results. A question-and-answer session will follow the management’s presentation.

Date: Wednesday, October 7, 2026

Time: 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time)

North America Dial-In: 1-833-461-5787

International Dial-In: +1 (585) 542-9983

Conference ID: 153 131 451

The conference call will be broadcast live and available for replay for one year here.

Please call the conference telephone number approximately 10 minutes before the start time. An operator will register your name and organization. If you have difficulty connecting with the conference call, please get in touch with Applied Digital’s investor relations team at 1-949-574-3860.

About Applied Digital

Applied Digital Corporation (Nasdaq: APLD) named Best Data Center in the Americas 2025 by Datacloud – designs, develops, owns, and operates large-scale, purpose-built data centers engineered to support HPC workloads, including AI, machine learning, and other accelerated-compute applications. Headquartered in Dallas, TX, and founded in 2021, the Company combines hyperscale expertise, closed-loop cooling, and rapid deployment capabilities to deliver secure, scalable compute at industry-leading speed and efficiency, while creating economic opportunities in underserved communities through its award-winning Polaris Forge AI Factory model. Find more information at www.applieddigital.com. Follow us on X (formerly Twitter) at @APLDdigital.

Forward-Looking Statements

This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, future operating and financial performance, product development, market position, business strategy and objectives and future financing plans. These statements use words, and variations of words, such as "intend," “will,” “continue,” “build,” “future,” “increase,” “drive,” “believe,” “look,” “ahead,” “confident,” “deliver,” “outlook,” “expect,” “project” and “predict.” Other examples of forward-looking statements may include, but are not limited to, (i) statements that reflect perspectives and expectations regarding lease agreements and any current or prospective data center campus development; (ii) statements about the high-performance computing (HPC) industry; (iii) statements of Company plans and objectives, including the Company’s evolving business model, or estimates or predictions of actions by suppliers; (iv) statements of future economic performance; (v) statements of assumptions underlying other statements and statements about the Company or its business; (vi) statements regarding international markets and expansion and development internationally, (vii) statements regarding the Company’s plans to obtain future project financing; and (viii) statements regarding ChronoScale. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the Company’s expectations and projections. These risks, uncertainties, and other factors include, among others: our ability to complete construction of our data center campuses as planned, including internationally; the lead time of customer acquisition and leasing decisions and related internal approval processes; changes to artificial intelligence and HPC infrastructure needs and their impact on future plans; costs related to the HPC operations and strategy; our ability to timely deliver any services required in connection with completion of installation under the lease agreements; our ability to raise additional capital to fund the ongoing datacenter construction and operations; differences in sourcing materials and labor internationally; our ability to obtain financing of datacenter leases on acceptable financing terms, or at all; our dependence on principal customers, including our ability to execute and perform our obligations under our leases with key customers; our ability to timely and successfully build new HPC hosting facilities with the appropriate contractual margins and efficiencies; power or other supply disruptions and equipment failures; the inability to comply with regulations, developments and changes in regulations, including internationally; cash flow and access to capital; availability of financing to continue to grow our business; decline in demand for our products and services; maintenance of third party relationships; and conditions in the debt and equity capital markets. A further list and description of these risks, uncertainties and other factors can be found in the Company’s most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q, including in the sections captioned “Forward-Looking Statements” and “Risk Factors,” and in the Company’s subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, on the Company’s website (www.applieddigital.com) under “Investors,” or on request from the Company. Information in this earnings release is as of the dates and time periods indicated herein, and the Company does not undertake to update any of the information contained in these materials, except as required by law.

Use and Reconciliation of Non-GAAP Financial Measures

To supplement our consolidated financial statements presented under GAAP, we are presenting certain non-GAAP financial measures. We are providing these non-GAAP financial measures to disclose additional information to facilitate the comparison of past and present operations by providing perspective on results absent one-time or significant non-cash items. We utilize these measures in the business planning process to understand expected operating performance and to evaluate results against those expectations. We believe that these non-GAAP financial measures, when considered together with our GAAP financial results, provide management and investors with an additional understanding of our core business operating results regarding factors and trends affecting our business and provide a reasonable basis for comparing our ongoing results of operations. Management considers the Data Center Hosting Business and the HPC Hosting Business to be its core operations for long-run strategic and performance evaluation purposes. Accordingly, these non-GAAP financial measures exclude the results of our consolidated subsidiary, ChronoScale. ChronoScale is included in our consolidated financial statements and results of continuing operations. Due to its strategic role relative to the Company’s core business, management believes the ChronoScale results may obscure underlying trends in the performance of core operations when included in certain non-GAAP measures.

These non-GAAP financial measures are provided as supplemental measures to our performance measures calculated in accordance with GAAP and therefore, are not intended to be considered in isolation or as a substitute for comparable GAAP measures. Excluding the results of ChronoScale in our non-GAAP financial measures removes revenues and expenses that are part of the Company’s consolidated results and continuing operations and should not be viewed as measures or reflections of liquidity or profitability in accordance with GAAP. Further, these non-GAAP financial measures have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. Because of the non-standardized definitions of non-GAAP financial measures, we caution investors that the non-GAAP financial measures as used by us in this earnings release have limits in their usefulness to investors and may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies. Further, investors should be aware that when evaluating these non-GAAP financial measures, these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. In addition, from time to time in the future there may be items that we may exclude for purposes of our non-GAAP financial measures and we may in the future cease to exclude items that we have historically excluded for purposes of our non-GAAP financial measures. Likewise, we may determine to modify the nature of the adjustments to arrive at our non-GAAP financial measures. Investors should review the non-GAAP reconciliations provided below and not rely on any single financial measure to evaluate our business.

Adjusted Revenue

“Adjusted revenue” is a non-GAAP financial measure that represents total revenue excluding ChronoScale revenue.

Adjusted Operating Income (Loss), Adjusted Net Loss from Continuing Operations, and Adjusted Net Loss from Continuing Operations per Diluted Share

“Adjusted operating income (loss)” and “Adjusted net loss from continuing operations” are non-GAAP financial measures that represent operating income and net income (loss) from operations excluding ChronoScale, respectively. Adjusted operating income (loss) is Operating loss excluding operating (loss) income from ChronoScale, stock-based compensation, non-recurring repair expenses, diligence, acquisition, disposition and integration expenses, litigation expenses, non-cash amortization of customer lease incentives, loss on abandonment of assets, restructuring expenses and other non-recurring expenses that management believes are not representative of our expected ongoing costs. Adjusted net loss from continuing operations is Adjusted operating income (loss) further adjusted for interest expense directly attributable to ChronoScale, loss on change in fair value of derivatives, and loss on change in fair value of investment. We define “Adjusted net loss from continuing operations per diluted share” as Adjusted net loss from continuing operations divided by weighted average diluted share count.

EBITDA and Adjusted EBITDA

“EBITDA” is defined as earnings before interest expense, interest income, income tax expense, and depreciation and amortization and excluding results of ChronoScale. “Adjusted EBITDA” is defined as EBITDA adjusted for stock-based compensation, non-cash amortization of customer lease incentives, non-recurring repair expenses, diligence, acquisition, disposition and integration expenses, litigation expenses, loss on abandonment of assets, loss on change in fair value of derivatives, loss on change in fair value of investments, restructuring expenses, and other non-recurring expenses that management believes are not representative of our expected ongoing costs.

Net Operating Income

"Net Operating Income" is a non-GAAP financial measure that represents base rental revenue from the HPC Hosting Business. Net Operating Income is HPC Hosting Business base rental revenue, excluding the non-cash amortization of one-time customer lease incentives provided at contract inception, less rental property operating expenses, property taxes, and property insurance expenses. "Net Operating Income Margin" is defined as Net Operating Income divided by HPC Hosting Business base rental revenue.

Investor Relations Contacts  Media Contact Matt Glover or Ralf Esper Buffy Harakidas, EVPGateway Group, Inc. JSA (Jaymie Scotto & Associates)(949) 574-3860 (856) [email protected] [email protected] APPLIED DIGITAL CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands, except share and par value data)  August 31, 2026 May 31, 2026ASSETS    Current assets:    Cash and cash equivalents $2,949,909  $1,591,988 Restricted cash  313,385   2,381,027 Accounts receivable  114,110   56,309 Prepaid expenses and other current assets (1)  685,638   613,692 Current assets held for sale  19,366   19,841 Total current assets  4,082,408   4,662,857 Property and equipment, net  6,330,411   4,236,300 Operating lease right of use assets, net  72,250   76,922 Finance lease right of use assets, net  109,887   122,523 Other assets  1,112,220   830,710 TOTAL ASSETS $11,707,176  $9,929,312      LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITYCurrent liabilities:    Accounts payable $336,865  $395,474 Accrued liabilities  850,355   548,493 Current portion of operating lease liability  19,199   18,484 Current portion of finance lease liability  43,490   47,585 Current portion of debt  112,645   16,422 Customer deposits  16,752   16,752 Deferred revenue  39,217   4,666 Due to customer  11,448   10,065 Current liabilities held-for-sale  4,988   7,426 Other current liabilities  158,273   97,489 Total current liabilities  1,593,232   1,162,856 Long-term deferred revenue  107   — Long-term portion of operating lease liability  41,670   47,178 Long-term portion of finance lease liability  2,457   10,731 Long-term debt  6,263,947   4,959,516 Other long-term liabilities  5,432   5,454 Total liabilities  7,906,845   6,185,735 Commitments and contingencies    Temporary equity    Series E preferred stock, $0.001 par value, 2,000,000 shares authorized, no shares issued and outstanding at August 31, 2026, and 276,673 shares issued and outstanding at May 31, 2026  —   6,306 Series E-1 preferred stock, $0.001 par value, 62,500 shares authorized, 61,831 shares issued and outstanding at August 31, 2026, and 61,909 shares issued and outstanding at May 31, 2026  56,373   56,460 Series G preferred stock, $0.001 par value, 1,030,000 shares authorized, 128,750 shares issued and outstanding at August 31, 2026, and no shares issued and outstanding at May 31, 2026  124,929   — Redeemable noncontrolling interest  2,010,873   1,956,303 Stockholders' equity:    Common stock, $0.001 par value, 600,000,000 shares authorized, 304,232,295 shares issued and 297,066,995 shares outstanding at August 31, 2026, and 295,048,903 shares issued and 287,883,603 shares outstanding at May 31, 2026  305   296 Treasury stock, 7,165,300 shares at August 31, 2026 and 7,165,300 shares at May 31, 2026, at cost  (52,737)  (52,737)Additional paid in capital  2,492,725   2,432,250 Accumulated deficit  (837,821)  (662,333)Total stockholders’ equity attributable to Applied Digital Corporation  1,602,472   1,717,476 Noncontrolling interest $5,684  $7,032 Total stockholders’ equity including noncontrolling interest $1,608,156  $1,724,508 TOTAL LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY $11,707,176  $9,929,312 
(1) Includes a related party receivable of $59.3 million and $58.6 million as of August 31, 2026 and May 31, 2026, respectively. APPLIED DIGITAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
(In thousands, except per share data) (Unaudited)  Three Months Ended  August 31, 2026 August 31, 2025Revenue:    Services revenue $262,755  $80,934 Data center rental and other revenue  79,120   — Total revenue  341,875   80,934 Costs and expenses:    Services cost of revenue  245,709   58,831 Data center rental and other cost of revenue  43,862   140 Selling, general and administrative (1)  114,683   29,482 Loss on abandonment of assets  —   2,243 Total costs and expenses  404,254   90,696 Operating loss  (62,379)  (9,762)Interest expense  77,383   8,013 Interest income (2)  (35,821)  (857)Loss on change in fair value of derivatives  49,511   — Loss on change in fair value of investment  11,352   — Other expense, net  1,311   — Net loss from continuing operations before income tax expense  (166,115)  (16,918)Income tax expense (benefit)  1,886   8 Net loss from continuing operations  (168,001)  (16,926)Net loss from discontinued operations  (16,054)  — Net loss  (184,055)  (16,926)Net loss attributable to noncontrolling interest and redeemable noncontrolling interest  (51,484)  — Preferred dividends  (1,543)  (1,576)Net loss attributable to common stockholders $(237,082) $(18,502)     Net loss attributable to common stockholders    Continuing operations $(221,028) $(18,502)Discontinued operations  (16,054)  — Net loss attributable to common stockholders $(237,082) $(18,502)     Basic and diluted net loss per share attributable to common stockholders    Continuing operations $(0.76) $(0.07)Discontinued operations  (0.06)  — Basic and diluted net loss per share attributable to common stockholders $(0.82) $(0.07)     Basic and diluted weighted average number of shares outstanding  291,557,618   255,892,902 
(1) Includes related party selling, general and administrative expense of $49.7 thousand and $74.3 thousand for the three months ended August 31, 2026 and August 31, 2025, respectively.
(2) Includes related party income of $0.7 million for the three months ended August 31, 2026. APPLIED DIGITAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows (In thousands)
(Unaudited)  Three Months Ended  August 31, 2026 August 31, 2025CASH FLOW FROM OPERATING ACTIVITIES    Net loss $(184,055) $(16,926)Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    Depreciation and amortization  41,912   4,152 Stock-based compensation  66,499   15,465 Lease expense  6,517   5,381 Loss on change in fair value of derivatives  49,511   — Loss on change in fair value of investment  11,352   — Amortization of debt issuance costs  5,896   4,851 Loss on classification of held for sale  14,126   — Loss on abandonment of assets  —   2,243 Gain on change in fair value of warrants  (22)  — Changes in operating assets and liabilities:    Accounts receivable  (56,977)  (29,525)Prepaid expenses and other current assets  (47,786)  (6,962)Customer deposits  107   627 Deferred revenue  34,480   (2,316)Accounts payable  (7,981)  (77,784)Accrued liabilities  106,701   28,684 Due to customer  1,383   (1,753)Lease assets and liabilities  5,856   (9,598)Other current liabilities  1,886   — Other assets  14,516   1,930 CASH FLOW PROVIDED BY (USED IN) OPERATING ACTIVITIES  63,921   (81,531)CASH FLOW FROM INVESTING ACTIVITIES    Purchases of property and equipment and other assets  (2,074,698)  (249,914)Investment in companies  (8,181)  — CASH FLOW USED IN INVESTING ACTIVITIES  (2,082,879)  (249,914)CASH FLOW FROM FINANCING ACTIVITIES    Repayment of finance leases  (14,252)  (29,932)Borrowings of long-term debt  1,648,500   65 Draw on revolver  82,390   — Repayments of long-term debt  (315,932)  (2,416)Payment of deferred financing costs  (28,879)  (1)Tax payments for restricted stock upon vesting  (99,413)  (4,497)Noncontrolling interest issuance contributions  1,349   — Proceeds from issuance of common stock  —   196,366 Common stock issuance costs  —   (5,945)Proceeds from issuance of preferred stock  274,999   175,000 Preferred stock issuance costs  (149)  (4,604)Redemption of preferred stock  (6,996)  (225)Dividends issued on preferred stock  (1,543)  (1,576)Exercise of warrants  —   1 Issuance of equity by subsidiary, net of costs  3,398   — CASH FLOW PROVIDED BY FINANCING ACTIVITIES $1,543,472  $322,236   Three Months Ended  August 31, 2026 August 31, 2025NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH $(475,486) $(9,209)CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD, INCLUDING CASH FROM DISCONTINUED OPERATIONS  4,153,431   123,318 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD, INCLUDING CASH FROM DISCONTINUED OPERATIONS  3,677,945   114,109 Less: CASH, CASH EQUIVALENTS, AND RESTRICTED CASH FROM DISCONTINUED OPERATIONS  2   — CASH, CASH EQUIVALENTS, AND RESTRICTED CASH FROM CONTINUED OPERATIONS $3,677,943  $114,109      SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION    Interest paid $242,852  $9,039 SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES    Operating right-of-use assets obtained by lease obligation $5,497  $— Finance right-of-use assets obtained by lease obligation $—  $3,966 Property and equipment in accounts payable and accrued liabilities $142,284  $132,113 Conversion of preferred stock to common stock $149,921  $242,480 Issuance of warrants, at fair value $—  $121,204 Non-cash dividends paid in-kind $60,051  $—  APPLIED DIGITAL CORPORATION AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Measures
(Unaudited)
(In thousands, except percentage data)  Three Months Ended  August 31, 2026 August 31, 2025Adjusted Revenue    Total revenue (GAAP) $341,875  $80,934 ChronoScale revenue  (41,482)  (16,718)Adjusted revenue (Non-GAAP) $300,393  $64,216      Adjusted operating income (loss)    Operating loss (GAAP) $(62,379) $(9,762)Operating loss from ChronoScale  25,354   (12,531)Stock-based compensation (1)  59,391   14,446 Non-recurring repair expenses (2)  72   173 Diligence, acquisition, disposition and integration expenses (3)  11,911   1,196 Litigation expenses (4)  1,177   190 Non-cash amortization of customer lease incentives  854   — Loss on abandonment of assets  —   1,751 Restructuring expenses (5)  129   431 Other non-recurring expenses (6)  1,307   490 Adjusted operating income (loss) (Non-GAAP) $37,816  $(3,616)Adjusted operating margin  13%  (6)%     Adjusted net loss from continuing operations    Net loss from continuing operations (GAAP) $(168,001) $(16,926)Operating loss from ChronoScale  25,354   (12,531)Net interest expense directly attributable to ChronoScale  1,557   3,210 Stock-based compensation (1)  59,391   14,446 Non-recurring repair expenses (2)  72   173 Diligence, acquisition, disposition and integration expenses (3)  11,911   1,196 Litigation expenses (4)  1,177   190 Non-cash amortization of customer lease incentives  854   — Loss on abandonment of assets  —   1,751 Loss on change in fair value of derivatives  49,511   — Loss on change in fair value of investment  11,352   — Restructuring expenses (5)  129   431 Other non-recurring expenses (6)  2,640   490 Adjusted net loss from continuing operations (Non-GAAP) $(4,053) $(7,570)Diluted weighted average number of shares outstanding (Non-GAAP)  291,557,618   255,892,902 Adjusted net loss from continuing operations per diluted share (Non-GAAP) $(0.01) $(0.03)     EBITDA and Adjusted EBITDA    Net loss from continuing operations (GAAP) $(168,001) $(16,926)Operating loss from ChronoScale  25,354   (12,531)Interest expense  77,383   8,013 Interest income  (35,821)  (857)Income tax (benefit) expense  1,886   8 Depreciation and amortization  26,574   4,153 EBITDA (Non-GAAP) $(72,625) $(18,140)Stock-based compensation (1)  59,391   14,446 Non-recurring repair expenses (2)  72   173 Diligence, acquisition, disposition, and integration expenses (3)  11,911   1,196 Litigation expenses (4)  1,177   190 Non-cash amortization of customer lease incentives  854   — Loss on change in fair value of derivatives  49,511   — Loss on change in fair value of investment  11,352   — Loss on abandonment of assets  —   1,751 Restructuring expenses (5)  129   431 Other non-recurring expenses (6)  2,640   490 Adjusted EBITDA (Non-GAAP) $64,412  $537      Net Operating Income    HPC Hosting Business base rental revenue (GAAP) $65,800  $— Non-cash amortization of customer lease incentives  854   — Rental property operating expenses  (5,726)  — Property taxes  (821)  — Property insurance expenses  (1,278)  — Net Operating Income (Non-GAAP) $58,829  $— Net Operating Income margin  89%  —%
(1) Represents stock-based compensation expense and employment taxes incurred in connection with the vesting of stock-based awards.
(2) Represents costs incurred for the non-recurring repair and replacement of equipment at our data center facilities.
(3) Represents legal, accounting and consulting costs incurred in association with certain discrete transactions and projects.
(4) Represents non-recurring litigation expense associated with our defense of class action lawsuits and legal fees related to matters with certain former employees. We do not expect to incur these expenses on a regular basis.
(5) Represents non-recurring expenses associated with employee separations.
(6) Represents expenses that are not representative of our expected ongoing costs.

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DALLAS, Oct. 06, 2026 (GLOBE NEWSWIRE) -- Applied Digital (NASDAQ: APLD), a U.S. based designer, developer, owner and operator of large-scale, purpose-built data centers to support high-performance computing (“HPC”) workloads, including artificial intelligence (“AI”), machine learning, and other accelerated-compute applications, today announced it has entered into an agreement providing access to up to 1 gigawatt (GW) of potential power capacity in Finland, representing the Company’s first development opportunity outside of the United States.

With this agreement, the Company plans to build a large-scale AI Factory campus capable of scaling to as much as 1 GW. Initial power availability is anticipated beginning in 2028. Applied Digital has begun marketing the site and is currently engaged in discussions with leading global hyperscale customers.

While Applied Digital’s near-term development strategy and execution priorities remain firmly centered on its growing U.S. portfolio, Finland represents a measured first step toward selectively extending the Company’s platform into attractive international markets over time. The agreement was structured to provide meaningful long-term growth potential while limiting the Company’s initial exposure and maintaining disciplined capital deployment.

“Applied Digital has built its platform around identifying the right power in the right markets and turning that power into operational AI capacity,” said Wes Cummins, Chairman and CEO of Applied Digital. “Finland stood out because many of the characteristics that have supported our success in North Dakota are also present in the Nordics — a favorable climate, an attractive energy ecosystem, strong connectivity and the ability to develop at meaningful scale.”

Cummins continued, “This is a deliberate first step, not a change in our strategy. Our focus remains firmly on executing the projects in front of us in the United States. At the same time, as we continue building Applied Digital into a category leader in AI infrastructure, we believe it is important to selectively secure compelling sites that can extend our growth runway over the long term.”

Finland has emerged as an increasingly attractive market for hyperscale and AI development, supported by its cooler climate, established energy and digital networks, and growing investment from global technology leaders. Applied Digital believes these characteristics align closely with the development principles that underpin its U.S. portfolio: securing scalable power and land in markets where AI capacity can be developed efficiently, responsibly and repeatedly.

The Finland campus represents the first potential application of Applied Digital’s AI Factory campus development model outside the U.S. The Company intends to advance the project in a disciplined manner, with future investment and development decisions tied to customer demand, commercial milestones and the achievement of necessary regulatory and development requirements.

“Our ability to scale is not about planting flags in as many markets as possible,” Cummins said. “It is about identifying exceptional sites and applying the same disciplined model repeatedly. We have demonstrated that model across our U.S. portfolio. Finland gives us the opportunity to begin proving that platform can travel.”

About Applied Digital

Applied Digital (Nasdaq: APLD) — named Best Data Center in the Americas 2025 by Datacloud — designs, builds, and operates high-performance, sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking, and blockchain workloads. Headquartered in Dallas, TX, and founded in 2021, the company combines hyperscale expertise, closed-loop cooling, and rapid deployment capabilities to deliver secure, scalable compute at industry-leading speed and efficiency, while creating economic opportunities in underserved communities through its AI Factory franchise model.

Learn more at applieddigital.com or follow @APLDdigital on X and LinkedIn.

Forward-Looking Statements
This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, future operating and financial performance, product development, market position, business strategy and objectives, and future financing plans. These statements use words, and variations of words, such as “will,” “continue,” “build,” “future,” “increase,” “drive,” “believe,” “look,” “ahead,” “confident,” “proven,” “deliver,” “outlook,” “expect,” “project” and “predict.” Other examples of forward-looking statements may include, but are not limited to, (i) statements that reflect perspectives and expectations regarding lease agreements and any current or prospective data center campus development; (ii) statements about the high-performance computing (HPC) industry; (iii) statements of company plans and objectives, including the company’s evolving business model, or estimates or predictions of actions by suppliers; (iv) statements of future economic performance; (v) statements regarding international markets and expansion and development internationally, and (vi) statements of assumptions underlying other statements and statements about the company or its business. You are cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the company’s expectations and projections. These risks, uncertainties, and other factors include, among others: whether or not our customers exercise the renewal options under their leases with us (if not, we will not recognize further revenue from such customer under its respective lease); our ability to complete construction of our data center campuses as planned, including internationally; the lead time of customer acquisition and leasing decisions and related internal approval processes; changes to artificial intelligence and HPC infrastructure needs and their impact on future plans; costs related to the HPC operations and strategy; our ability to timely deliver any services required in connection with completion of installation under lease agreements; our ability to raise additional capital to fund the ongoing datacenter construction and operations; differences in sourcing materials and labor internationally; our ability to obtain financing of datacenter leases and more broadly for our development and general corporate activities; our dependence on principal customers, including our ability to execute and perform our obligations under our leases with key customers; our ability to timely and successfully build new hosting facilities with the appropriate contractual margins and efficiencies; power or other supply disruptions and equipment failures; the inability to comply with regulations, developments and changes in regulations, including internationally; cash flow and access to capital; availability of financing to continue to grow our business; decline in demand for our products and services; maintenance of third party relationships; and conditions in the debt and equity capital markets. A further list and description of these risks, uncertainties, and other factors can be found in the company’s most recently filed Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, including in the sections captioned “Forward-Looking Statements” and “Risk Factors,” and in the company’s subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, on the company’s website (www.applieddigital.com) under “Investors,” or on request from the company. Information in this press release is as of the dates and time periods indicated herein, and the company does not undertake to update any of the information contained in these materials, except as required by law.

Media Contact
JSA (Jaymie Scotto & Associates)
(856) 264-7827
[email protected]

Investor Relations Contacts
Matt Glover or Ralf Esper
Gateway Group, Inc.
(949) 574-3860
[email protected]

Applied Digital Corp. (NASDAQ:APLD) reports fiscal first-quarter results after the bell Wednesday, and two of three AI chatbots expect the print to lift the stock by Friday.

APLD stock is moving. See the chart and price action here.  Each chatbot got the same prompt: Name one U.S.-listed stock for the week, with a catalyst, thesis, key data, risk and trade plan. OpenAI’s ChatGPT and xAI’s Grok both named the AI data-center operator their top pick for the week of Oct. 5. 

Anthropic‘s Claude, however, went another way. It picked Delta Air Lines Inc. (NYSE:DAL) ahead of the carrier’s Friday report and ranked Applied Digital second.

ChatGPT Bets On CapacityChatGPT was the most confident of the three, rating its call 8 out of 10. Capacity drove its thesis. According to ChatGPT, Applied Digital just brought another 75 megawatts online, lifting its Polaris Forge 1 campus to 250 MW in operation against 400 MW under contract.

The chatbot also cited bullish initiations from UBS, Wells Fargo and Jones Trading, plus a short float near 22%. Its plan calls for buying between $25 and $25.75, with a $29.50 target and a $23.40 stop.

Read Next

Grok Leans On MomentumGrok rated its pick seven out of 10 and pointed to last quarter’s blowout. Applied Digital posted fiscal fourth-quarter revenue of $258.7 million in July, up 407% and far above the $94.8 million analysts expected. 

“We see demand for high-power-density, purpose-built AI data centers remaining extremely robust,” CEO Wes Cummins said at the time.

Grok’s trade plan runs wider. It calls for entry between $25 and $26, a weekly target of $30 to $32 and a $22 stop.

The APLD SetupApplied Digital closed Friday at $25.38, up 5.05% on the day. Shares are up about 3.5% this year but trade roughly 50% below their 52-week high of $50.73. The company has a market value of about $7.3 billion.

Long-term leases anchor the bull case. CoreWeave Inc. (NASDAQ:CRWV) is a key tenant, and Applied Digital signed a $7.5 billion lease with an unnamed U.S. hyperscaler at its Delta Forge 1 site in April. 

Both chatbots flagged the same risk: a miss or soft guidance could hit a volatile stock carrying heavy short interest.

Claude Picks DeltaClaude was the most cautious, rating its call 6 out of 10. Delta kicks off airline earnings season before the open Friday. 

Claude’s thesis rests on four straight earnings beats and a lower bar after TD Cowen trimmed its price target to $101 from $105. 

Fuel is the overhang. Delta expected this year’s fuel bill to run about $4 billion higher than in 2025, though its Trainer refinery in Pennsylvania leaves the airline “a bit more insulated than peers,” CNBC said.

The stock is up about 21% this year and DAL stock closed Friday at $84.09, roughly 12% below its 52-week high. Claude’s plan: buy between $83 and $85, target $91 and stop at $79.

The Runners-UpThe backup lists overlapped. ChatGPT named Levi Strauss & Co. (NYSE:LEVI), which reports Wednesday after the close, and Constellation Brands Inc. (NYSE:STZ), which reports Tuesday after the bell. Claude also tapped the Corona brewer.

Grok went with Delta and PepsiCo Inc. (NASDAQ:PEP), which reports Thursday before the open. 

Read Next

Photo: Shutterstock

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Backblaze (NASDAQ:BLZE – Get Free Report) and Applied Digital (NASDAQ:APLD – Get Free Report) are both technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, institutional ownership, profitability, analyst recommendations and dividends.

Analyst Ratings This is a summary of current ratings for Backblaze and Applied Digital, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Backblaze 1 1 8 0 2.70 Applied Digital 2 2 13 3 2.85 Backblaze presently has a consensus target price of $19.71, indicating a potential upside of 37.29%. Applied Digital has a consensus target price of $60.88, indicating a potential upside of 139.89%. Given Applied Digital’s stronger consensus rating and higher possible upside, analysts clearly believe Applied Digital is more favorable than Backblaze.

Valuation & Earnings This table compares Backblaze and Applied Digital”s gross revenue, earnings per share (EPS) and valuation. Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Backblaze $145.84 million 6.09 -$25.61 million ($0.34) -42.24 Applied Digital $611.31 million 12.10 -$244.00 million ($0.89) -28.52 Backblaze has higher earnings, but lower revenue than Applied Digital. Backblaze is trading at a lower price-to-earnings ratio than Applied Digital, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility Backblaze has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500. Comparatively, Applied Digital has a beta of 5.99, suggesting that its stock price is 499% more volatile than the S&P 500.

Profitability This table compares Backblaze and Applied Digital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Backblaze -13.07% -16.73% -7.10% Applied Digital -37.78% -16.42% -4.00% Institutional and Insider Ownership 54.0% of Backblaze shares are held by institutional investors. Comparatively, 65.7% of Applied Digital shares are held by institutional investors. 4.2% of Backblaze shares are held by company insiders. Comparatively, 9.5% of Applied Digital shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary Applied Digital beats Backblaze on 12 of the 15 factors compared between the two stocks.

About Backblaze (Get Free Report)

Backblaze, Inc., a storage cloud platform, provides businesses and consumers cloud services to store, use, and protect data in the United States and internationally. The company offers cloud services through a web-scale software infrastructure built on commodity hardware. It also provides Backblaze B2 Cloud Storage, which enables customers to store data, developers to build applications, and partners to expand their use cases. This service is offered as a consumption-based Infrastructure-as-a-Service (IaaS) and serves use cases, such as public, hybrid, and multi-cloud data storage; application development and DevOps; content delivery and edge computing; security and ransomware protection; media management; backup, archive, and tape replacement; repository for analytics, artificial intelligence and machine learning; and Internet of Things. In addition, the company offers Backblaze Computer Backup that automatically backs up data from laptops and desktops for businesses and individuals, which provides a subscription-based Software-as-a-Service and serves use cases, including computer backup, ransomware protection, theft and loss protection, and remote access. It serves the public cloud IaaS storage and Data-Protection-as-a-Service markets. The company was incorporated in 2007 and is headquartered in San Mateo, California.

(Get Free Report)

Applied Digital Corporation designs, develops, and operates datacenters in North America. Its datacenters provide digital infrastructure solutions to the high-performance computing industry. The company also provides artificial intelligence cloud services, high performance computing datacenter hosting, and crypto datacenter hosting services. The company was formerly known as Applied Blockchain, Inc. and changed its name to Applied Digital Corporation in November 2022. Applied Digital Corporation is based in Dallas, Texas.

Receive News & Ratings for Backblaze Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Backblaze and related companies with MarketBeat.com's FREE daily email newsletter.

Applied Digital (APLD +5.05%) finished the trading week on quite a high note. The artificial intelligence (AI) data center developer published an update on one of its facilities, and investors obviously found the news very encouraging. They traded the stock up by more than 5% on Friday.

Forging more AI computeBefore market open, Applied issued a press release announcing that it has reached ready-for-service (RFS) status for the second phase of building 2 at Polaris Forge 1, a data center it's building out in North Dakota. RFS is an industry term meaning that the construction, diagnostic, and power setups for an asset have been completed, and said asset is operational.

Image source: Getty Images.

Applied said that this completes the building's full 150 megawatts of critical IT load. It also raises the fully operational critical IT load at the Polaris Forge 1 complex to 250 megawatts. Ultimately, when fully completed, the campus -- which is 100% leased -- is expected to deliver 400 megawatts.

In the press release, Applied quoted CEO Wes Cummins as saying that this development "further demonstrates our ability to turn large-scale power into operational AI infrastructure."

Premium Feature

Moneyball Superscore

67/100

Today's Change

(

5.05

%) $

1.22

Current Price

$

25.38

Caterpillar to butterflyBefore it started to push hard into data center build-outs and operations, Applied was one of numerous cryptocurrency miners pivoting into AI and advanced computing infrastructure. To my mind, it's one of the more successful, with an impressive set of assets. The Polaris Forge 1 news is indicative of the progress it continues to make, and of its position ahead of peer companies undergoing the same business transformation.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Completion of three additional 25 MW data halls brings fully operational capacity at Polaris Forge 1 to 250 MW  | Source: Applied Digital Corporation

DALLAS, Oct. 02, 2026 (GLOBE NEWSWIRE) -- Applied Digital (NASDAQ: APLD), a U.S. based designer, developer, owner and operator of large-scale, purpose-built data centers engineered to support high-performance computing (“HPC”) workloads, including artificial intelligence (“AI”), machine learning, and other accelerated-compute applications, today announced it has achieved Ready for Service for the second phase of Building 2 at its Polaris Forge 1 campus, delivering an additional 75 MW of critical IT load across three 25 MW data halls.

The milestone completes Building 2’s full 150 MW of critical IT load and brings fully operational critical IT load at Polaris Forge 1 to 250 MW. The fully leased AI Factory Campus is contracted to deliver 400 MW of critical IT load at full buildout.

“Bringing another 75 MW of AI infrastructure online at Polaris Forge 1 further demonstrates our ability to turn large-scale power into operational AI infrastructure,” said Wes Cummins, Chairman and Chief Executive Officer of Applied Digital. “Securing power is only the starting point. The real work is designing, building, commissioning, and operating the infrastructure that transforms those megawatts into usable capacity for customers. That is the capability we continue to scale across our platform.”

The latest delivery follows the first 100 MW building at Polaris Forge 1 and the initial 75 MW phase of Building 2. With 250 MW now operational, Polaris Forge 1 reflects Applied Digital’s repeatable approach to developing and operating large-scale infrastructure purpose-built for advanced AI and high-performance computing workloads.

Polaris Forge 1 is located in Ellendale, North Dakota, where Applied Digital has operated since 2021 and built long-standing relationships with local leaders, partners, and community stakeholders. As the campus continues to expand, the Company remains focused on responsible development, local partnership, and creating long-term value in the communities where it builds.

About Applied Digital

Applied Digital (Nasdaq: APLD) — named Best Data Center in the Americas 2025 by Datacloud — designs, builds, and operates high-performance, sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking, and blockchain workloads. Headquartered in Dallas, TX, and founded in 2021, the company combines hyperscale expertise, closed-loop cooling, and rapid deployment capabilities to deliver secure, scalable compute at industry-leading speed and efficiency, while creating economic opportunities in underserved communities through its AI Factory franchise model.

Learn more at applieddigital.com or follow @APLDdigital on X and LinkedIn.

Forward-Looking Statements
This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, future operating and financial performance, product development, market position, business strategy and objectives, and future financing plans. These statements use words, and variations of words, such as “will,” “continue,” “build,” “future,” “increase,” “drive,” “believe,” “look,” “ahead,” “confident,” “proven,” “deliver,” “outlook,” “expect,” “project” and “predict.” Other examples of forward-looking statements may include, but are not limited to, (i) statements that reflect perspectives and expectations regarding lease agreements and any current or prospective data center campus development; (ii) statements about the high-performance computing (HPC) industry; (iii) statements of company plans and objectives, including the company’s evolving business model, or estimates or predictions of actions by suppliers; (iv) statements of future economic performance; and (v) statements of assumptions underlying other statements and statements about the company or its business. You are cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the company’s expectations and projections. These risks, uncertainties, and other factors include, among others: whether or not our customers exercise the renewal options under their leases with us (if not, we will not recognize further revenue from such customer under its respective lease); our ability to complete construction of our data center campuses as planned; the lead time of customer acquisition and leasing decisions and related internal approval processes; changes to artificial intelligence and HPC infrastructure needs and their impact on future plans; costs related to the HPC operations and strategy; our ability to timely deliver any services required in connection with completion of installation under lease agreements; our ability to raise additional capital to fund the ongoing datacenter construction and operations; our ability to obtain financing of datacenter leases and more broadly for our development and general corporate activities; our dependence on principal customers, including our ability to execute and perform our obligations under our leases with key customers; our ability to timely and successfully build new hosting facilities with the appropriate contractual margins and efficiencies; power or other supply disruptions and equipment failures; the inability to comply with regulations, developments and changes in regulations; cash flow and access to capital; availability of financing to continue to grow our business; decline in demand for our products and services; maintenance of third party relationships; and conditions in the debt and equity capital markets. A further list and description of these risks, uncertainties, and other factors can be found in the company’s most recently filed Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, including in the sections captioned “Forward-Looking Statements” and “Risk Factors,” and in the company’s subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, on the company’s website (www.applieddigital.com) under “Investors,” or on request from the company. Information in this press release is as of the dates and time periods indicated herein, and the company does not undertake to update any of the information contained in these materials, except as required by law.

Media Contact
JSA (Jaymie Scotto & Associates)
(856) 264-7827
[email protected]

Investor Relations Contacts
Matt Glover or Ralf Esper
Gateway Group, Inc.
(949) 574-3860
[email protected]

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:

Applied Digital Corporation (APLD - Free Report) is a U.S. designer, developer and operator of high-performance data centers and colocation services for artificial intelligence, cloud, networking and blockchain workloads. The Zacks Consensus Estimate for its current year earnings has been revised almost 23.9% downward over the last 60 days.

Cavco Industries (CVCO - Free Report) designs and produces factory-built housing products primarily distributed through a network of independent and Company-owned retailers. The Zacks Consensus Estimate for its current year earnings has been revised almost 7.1% downward over the last 60 days.

Amrize Ltd (AMRZ - Free Report) focuses on building materials business principally in North America. The Zacks Consensus Estimate for its current year earnings has been revised 7% downward over the last 60 days.

View the entire Zacks Rank #5 List.

Applied Digital Corporation (NASDAQ:APLD) shares are in the spotlight, with earnings on deck and a wide split in recent analyst activity.

Applied Digital shares are under pressure. Why are APLD shares declining? Earnings Preview & HistoryApplied Digital is scheduled to report fiscal first-quarter 2027 earnings on October 8 after the market closes. Analysts estimate a loss of 30 cents per share along with revenue of $134.86 million. For the prior quarter, Applied Digital reported EPS of 4 cents, beating the consensus estimate of a loss of 22 cents. The company also posted revenue of $258.75 million, beating the consensus estimate of $94.84 million.

What to Expect: AI Factory Buildout, Hyperscaler Lease Updates in FocusInvestors will be closely tracking the pace of construction and energization milestones across Applied Digital’s four AI Factory campuses — Polaris Forge 1, 2, and 3, and Delta Forge 1 — which together carry $31 billion in contracted lease revenue, or up to $73 billion including renewal options. Commentary on the Polaris Forge 3 lease, a 300 MW agreement signed with a U.S.-based investment-grade hyperscaler valued at approximately $7.5 billion in base-term revenue, will also be in focus, along with any updates on the CoreWeave subsidiary’s progress toward investment-grade credit status under the companies’ Building 3 assignment agreement.

Progress on Base Electron, the company’s independent power venture aimed at adding 1.2 gigawatts of grid capacity in the Dakotas, along with the pace of new lease signings and the company’s ongoing efforts to lower its cost of project-level debt, should offer additional signals on execution heading into fiscal 2027.

Analyst Consensus & Recent Actions The stock carries a Buy rating with an average price forecast of $61.65. Recent analyst moves include:

UBS: Initiated with Buy (Target $38.00) (Sept. 23) Rothschild & Co: Initiated with Neutral (Target $22.00) (Sept. 21) Wells Fargo: Initiated with Overweight (Target $50.00) (Sept. 17) Read Next

Applied Digital Shares Edge LowerAPLD Price Action: At the time of publication, Applied Digital shares are trading 1.60% lower at $25.83, according to data from Benzinga Pro.

Image via Shutterstock

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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