Applied Digital (APLD) Q4 2026 earnings summary

Executive summary

• Signed leases for five campuses, including three 15-year take-or-pay leases with a high investment-grade hyperscaler, resulting in $36 billion of total contracted long-term lease value, with $20 billion signed in the last quarter, representing a 125% increase year-over-year.

• Delivered 100 MW at Polaris Forge 1 on time and on budget, and expanded to five multi-billion dollar AI factory campuses for three hyperscalers.

• Completed the separation of the cloud business, ChronoScale, now trading independently with 96% ownership retained.

• Fiscal Q4 2026 revenue reached $258.7 million, up 407% year-over-year, with adjusted revenue at $240.4 million.

• Fiscal year 2026 revenue totaled $611.3 million, up 167% year-over-year; adjusted net income for the year was $36.1 million.

Financial highlights

• Q4 total revenues reached $258.7 million, up 407% from the prior quarter; $208.2 million from services and $50.6 million from data center rental and other revenue.

• HPC hosting business generated $203 million in Q4 revenue, with $152.4 million from tenant fit-out services, $44.1 million from base rent, and $6.5 million from tenant recoveries.

• Data center hosting segment delivered $37.3 million in Q4 revenue, stable year-over-year, with $12.5 million in segment operating profit on $113.8 million in assets.

• Net loss attributable to common shareholders was $111.6 million ($0.39 per share) in Q4; adjusted net income was $12.9 million ($0.04 per diluted share).

• Adjusted EBITDA was $42.4 million in Q4 and $107.2 million for the fiscal year; net operating income (NOI) was $39.9 million in Q4 with a 91% margin.

Outlook and guidance

• Actively marketing an additional 1.7 GW of capacity, expecting higher pricing and longer lease durations.

• Expansion leases under negotiation could add 250 MW and over $6 billion in contracted revenue, with anticipated higher rates.

• Building toward 1.5 GW of HPC AI infrastructure, with significant step-up in revenue, EBITDA, and NOI expected as new capacity comes online.

• Targeting $1 billion net operating income run rate within a year, three years ahead of initial schedule.

• Three new long-term leases with a major hyperscaler are expected to commence operations in 2027 and 2028, representing $20 billion in base-term contracted revenue.