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 improved performance.

• Net loss attributable to common stockholders narrowed to $19.1 million, 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, three contracted buildings completed, and a 15-year, 200 MW lease at Polaris Forge 2 signed.

• Announced plans to spin out the cloud business and merge it with EKSO Bionics to form Chronoscale, with over 80% initial ownership retained.

• Total of 600 MW of lease capacity and $16B in prospective lease revenue secured across North Dakota campuses, with advanced discussions 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.

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

• Net loss was $31.2 million ($0.11/share); adjusted net income was $0.1 million.

• Cost of revenues rose to $100.6 million, mainly due to tenant fit-out services and increased hosting capacity.

• SG&A increased to $57 million, primarily from $23.8 million in accelerated stock-based compensation and higher legal and personnel expenses.

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.

• Expectation to surpass $1B in NOI within five years, with a clear path to 5 GW of capacity by 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.

• Robust pipeline with advanced discussions on three sites totaling 900 MW, and ongoing efforts to diversify by customer and location.

• 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.