Applied Digital (APLD) investor relations material

Executive summary

• Revenue for the quarter ended February 28, 2026, reached $126.6 million, up 139% year-over-year, driven by strong performance in HPC hosting and data center segments.

• Adjusted EBITDA was $44.1 million, reflecting early returns from large-scale AI data center investments and a 41% margin.

• Net loss attributable to common stockholders was $100.9 million ($0.36 per share), impacted by a $59.7 million Cloud Services asset write-down.

• Announced the planned separation of the Cloud Services Business via a merger with EKSO Bionics Holdings to form Chronos Scale Corporation.

• Major capital was raised through $2.15 billion and $2.35 billion senior secured notes and $740 million in Series G Preferred Stock to fund data center expansion.

Financial highlights

• HPC hosting revenue was $71 million for the quarter, with $44.1 million from base rents, $18.9 million from tenant fit-out, and $8.1 million from ancillary streams; segment operating profit was $17.6 million.

• Data center segment revenue was $37.5 million for the quarter, up 7% year-over-year, with $13.9 million in operating profit.

• Cloud Services Business revenue was $18.1 million for the quarter, but a $59.7 million non-cash write-down led to a $52.2 million segment loss.

• SG&A expense rose to $79.7 million, mainly due to $39.3 million in stock-based compensation and $8.6 million in professional services for one-time transactions.

• Cash, cash equivalents, and restricted cash at quarter-end were $2.1 billion, with $2.7 billion in debt and no significant maturities in the next two years.

Outlook and guidance

• Revenue is expected to ramp significantly over the next 12 months as new 150-MW buildings come online.

• Management targets exceeding $1 billion in NOI within five years, supported by robust demand for high-performance AI data center capacity.

• Sufficient liquidity is projected for at least the next twelve months, supported by cash on hand, customer payments, and access to capital markets.

• Plans to maintain a strong balance sheet and refinance debt at lower rates as construction risk decreases.

• Targeting 70% of contracted revenue from investment-grade tenants.