TLDR
Applied Digital Corporation (APLD) recovered in overnight trading after reporting sharply higher quarterly revenue and expanding its artificial intelligence data center portfolio. The stock closed at $26.38, down 3.00%, before rebounding 3.17% to $27.21 overnight. The company also outlined new hyperscale leases, financing milestones, and operational progress across multiple campuses.
Applied Digital reported fiscal fourth-quarter revenue of $258.7 million, representing a 407% increase from the same period last year. Fiscal year revenue reached $611.3 million, increasing 167% year over year. The company also posted adjusted revenue of $240.4 million during the quarter.
Net loss attributable to common stockholders totaled $110.6 million for the quarter, while adjusted net income reached $12.9 million. Additionally, adjusted EBITDA increased to $42.4 million, and net operating income totaled $39.9 million. Fiscal year adjusted EBITDA reached $107.2 million with adjusted net income of $36.1 million.
During the quarter, Applied Digital completed the separation of its cloud services business. As a result, the company retained approximately 96% ownership of ChronoScale Holdings Corporation, which now operates as a separate publicly traded company while remaining consolidated for financial reporting.
Applied Digital signed two new 15-year take-or-pay agreements with the same U.S.-based investment-grade hyperscaler during the quarter. Each agreement covers 300 megawatts of critical IT capacity and carries approximately $7.5 billion in contracted base-term revenue. The projects include Delta Forge 1 in Louisiana and Polaris Forge 3 in North Dakota.
After the quarter ended, the company signed another 15-year agreement for 210 megawatts at Delta Forge 2. That project adds approximately $5.2 billion in contracted base-term revenue and supports operations expected during the first half of 2028. Together, the three agreements contribute roughly $20 billion in contracted revenue.
Applied Digital now holds approximately 1.4 gigawatts of contracted critical IT capacity across five campuses. Those agreements represent approximately $36 billion in contracted lease revenue during the initial lease terms. Furthermore, renewal options could increase the total contract value to approximately $86 billion.
Applied Digital strengthened its balance sheet through several financing transactions supporting ongoing development. The company completed a $2.15 billion senior secured notes offering and later raised another $1.59 billion through additional secured notes. It also expanded its revolving credit facility to $430 million with another $120 million available.
Operational progress continued across the company’s AI infrastructure projects. Phase 1 of Building 2 at Polaris Forge 1 entered service, increasing live campus capacity to 175 megawatts. Meanwhile, additional facilities across North Dakota, Louisiana, and another southern state remain under construction.
The company’s HPC Hosting business generated $203.0 million in quarterly revenue, including base rent, tenant fit-out services, and tenant recoveries. Separately, its Data Center Hosting business generated $37.3 million in revenue while maintaining full utilization across its North Dakota facilities. Applied Digital also continued marketing an additional 1.7 gigawatts of available capacity while advancing a power generation initiative through Base Electron Corp. to support future expansion.
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