Applied Digital Corp. 8-K

Summary

Fiscal Q1 2027 results, with HPC hosting growth. Revenue rose 322% Y/Y as tenant fit-out services expanded and HPC rental operations contributed their first full quarter of rent. The company reported a larger GAAP loss, with higher operating costs and financing and fair-value charges; its contracted HPC lease base reached approximately 1.41 GW across five campuses.

Key Figures

• Revenue growth reflected a $157.2M increase in tenant fit-out services and $23.0M of ChronoScale GPU hardware sales; data center rental and other revenue was $79.1M, including $65.8M in base rent. Selling, general and administrative expense rose to $114.7M from $29.5M, while interest expense rose to $77.4M from $8.0M.
• The company had leases for approximately 1.41 GW of critical IT load, representing approximately $36B of contracted revenue over base terms or $86B if all renewal options are exercised. Polaris Forge 1 reached 250 MW of live capacity after quarter-end.
• Cash, cash equivalents and restricted cash were $3.68B and debt was $6.38B at 8/31/2026. The company closed $1.59B of 7.000% senior secured notes issued at par and due 2031, to fund construction of a 150 MW building at Polaris Forge 1 and repay a $300M bridge facility. Operating cash flow was positive, while purchases of property, equipment and other assets were $2.07B. Total net loss attributable to common stockholders was $237.1M, including $16.1M from discontinued operations.

Guidance

• North Dakota delivered critical IT load expected to reach 300 MW by the end of calendar 2026, as initial operations at Polaris Forge 2 come online.

Investor Takeaways

• Watch delivery against the 300 MW North Dakota critical IT load target by year-end; construction and power availability underpin the company’s planned campus growth.