Applied Digital (APLD) Q2 2026 earnings summary

Executive summary

• Revenue for fiscal Q2 2026 reached $126.6 million, a 250% year-over-year increase, driven by HPC and data center hosting growth and major hyperscale leases.

• Net loss attributable to common stockholders narrowed to $19.1 million, down significantly from the prior year, with adjusted net income of $0.1 million and adjusted EBITDA of $20.2 million.

• Achieved major milestones with 100 MW at Polaris Forge 1 energized on schedule, first three contracted buildings completed, and a 15-year, 200 MW lease at Polaris Forge 2 signed.

• Announced plans to spin out the cloud business via a merger to form Chronoscale, expected to close in H1 2026, with over 80% initial ownership retained.

• Entered advanced discussions with another hyperscaler for additional sites, reflecting strong inbound demand and positioning for further expansion.

Financial highlights

• Quarterly revenue rose to $126.6 million from $36.2 million year-over-year; six-month revenue reached $190.8 million, up from $69.1 million.

• Adjusted EBITDA for the quarter was $20.2 million (16% margin), up from $6.1 million (17% margin) in the prior year.

• Net loss was $31.2 million ($0.11/share), improved from $129.0 million ($0.61/share) year-over-year.

• Cash, cash equivalents, and restricted cash totaled $2.3 billion at period end; debt stood at $2.6 billion, mostly maturing in 2030.

• Cost of revenues increased 344% to $100.6 million, mainly due to tenant fit-out and energy costs.

Outlook and guidance

• Lease revenues expected to ramp in the next quarter, with meaningful revenue growth anticipated over the next 18–24 months as 600 MW of capacity comes online.

• Expects to surpass $1 billion in NOI within five years, with a clear path to 5 GW of capacity by 2031–2032 if current expansion plans are realized.

• Management expects continued investment in property and equipment through fiscal 2026 as construction of HPC hosting facilities progresses.

• Liquidity is expected to be sufficient for at least the next 12 months, supported by cash on hand, customer payments, and access to capital markets.