Revenue Surge Amid Strategic Expansion

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This article first appeared on GuruFocus.

  • Revenue: $64.2 million, up 84% from $34.8 million in the fiscal first quarter of 2025.

  • Tenant Fit-Out Revenue: $26.3 million from HPC hosting business.

  • Cost of Revenues: $55.6 million, up from $22.7 million.

  • SG&A Expenses: $29.2 million, increased due to $16.6 million in stock-based compensation and $3.9 million in personnel expenses.

  • Net Loss: $27.8 million or $0.11 per share.

  • Adjusted Net Loss: $7.6 million or $0.03 per share.

  • Adjusted EBITDA: $0.5 million, compared to $6.3 million in the prior year.

  • Cash and Cash Equivalents: $114.1 million.

  • Debt: $687.3 million.

Release Date: October 09, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

  • Applied Digital Corp (NASDAQ:APLD) expanded its long-term lease agreements with CoreWeave, increasing the total contract value to approximately $11 billion.

  • The company broke ground on a new campus, Polaris Forge 2, with initial construction funding secured and plans to scale to 1 gigawatt.

  • Applied Digital Corp (NASDAQ:APLD) secured an initial $112.5 million draw from a $5 billion preferred equity facility with Macquarie Asset Management, ensuring financing alignment for future projects.

  • The company reported a significant increase in revenues for the first fiscal quarter of 2026, up 84% from the previous year.

  • Applied Digital Corp (NASDAQ:APLD) has a robust multi-gigawatt pipeline and is actively evaluating new sites across additional states and regions to meet accelerating demand.

  • The company reported a net loss of $27.8 million for the first fiscal quarter of 2026.

  • Stock-based compensation expenses increased significantly, contributing to higher SG&A costs.

  • The cloud services business is under strategic review and classified as held for sale, indicating potential divestment.

  • Interest expenses increased compared to the previous year, impacting overall financial performance.

  • The company faces challenges in scaling development and construction to meet the high demand for AI infrastructure.

Q: What are the largest remaining factors for project financing, and should we expect financing for the first $150 million or all $400 million? A: Saidal Mohmand, CFO: We expect the project financing to entail both buildings due to their size and timing. This is one of the largest CoreWeave tenant financings in the market, and we aim for a facility in line with or more optimal than competitors.

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