Applied Digital Corp.

Applied Digital reported fiscal Q4 continuing-operations revenue of $258.7 million, including $208.2 million of services revenue and $50.6 million of data center rental and other revenue. Total revenue increased 407% from the comparative prior quarter. HPC hosting revenue was $203 million, data center hosting revenue was $37.3 million, and ChronoScale contributed $18.8 million of revenue, which management excluded from non-GAAP results. Gross margin was not stated, but net operating income was $39.9 million, representing a 91% margin, adjusted EBITDA was $42.4 million versus $1 million in the comparative prior quarter, adjusted net income was $12.9 million, and adjusted EPS was $0.04 per diluted share. Net loss attributable to common shareholders was $111.6 million, or $0.39 per share, and depreciation was approximately $18.2 million. For balance sheet items, the company ended with $4.2 billion in cash, $5 billion in debt, and approximately $1.7 billion in equity. Looking ahead, management said CapEx should be around $600 million in the upcoming quarter, and it reiterated that it is building toward 1.5 gigawatts of HPC AI infrastructure.

Wes Cummins framed the quarter as a defining, transformational period, emphasizing the move to 5 campuses, the rise to $36 billion of contracted lease value, and the company’s ability to win large direct leases with investment-grade hyperscalers. His tone was confident and disciplined: he repeatedly highlighted repeatable execution, on-time/on-budget delivery, and a “franchise model” built to scale while preserving quality and customer trust. He also tied the growth story to power access, especially in North Dakota, and said the company’s existing campuses could expand to over 5 gigawatts of critical IT load through 2032.

Saidal Mohmand focused on financing efficiency and balance-sheet strength. He said the company closed $2.15 billion of 6.75% senior secured notes for Polaris Forge 2, a $300 million senior secured bridge facility led by Goldman Sachs, a revolving credit facility of up to $550 million, and $1.59 billion of 7% senior secured notes for Polaris Forge 1’s fourth building. He noted the recent $1.5 billion notes priced at 7%, 225 basis points inside the first placement at roughly 9.25%, and said the company has now secured financing for the full 400 megawatts at Polaris Forge 1 and 200 megawatts at Polaris Forge 2. On operations, he cited $258.7 million of revenue, $42.4 million of adjusted EBITDA, $39.9 million of NOI, and $111.6 million of net loss attributable to common shareholders, while calling out $116.8 million of stock-based compensation in SG&A, including $47.9 million tied to one-time ChronoScale awards and $65.1 million tied to PSUs.

Analysts pressed management on the lower yields of the recent large leases, cost of capital, CapEx cadence, restricted cash, expansion options, Base Electron timing, market demand, and the company’s growth limits. Wes said the company intentionally stayed conservative on pricing and returns, that pricing has moved higher, and that the goal was to lock in durable contracts and strong SLAs with high-quality customers. Saidal said the financing model uses the company balance sheet, Macquarie’s 3/4 equity funding in the JV, and site-specific debt, and he gave an upcoming-quarter CapEx estimate of around $600 million; he also said most restricted cash tied to the Polaris Forge 2 bond had been released. On Base Electron, Wes said initial capacity is expected in 2029 and 2030, and that the remaining marketed 1.7 gigawatts is expected to go to new customers.