TLDR Applied Digital revenue jumped 407% as AI infrastructure business expanded rapidly. APLD secured three long-term hyperscaler leases worth about $20 billion. Contracted AI data center cap
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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