Factual Summary
Applied Digital Corp. reported FY2026 (fiscal year ended 2026-05-31) results on 2026-07-27, with annual revenue of $611.31 million (+167% year-over-year) and fourth-quarter revenue of $258.7 million (+407% year-over-year). In the same disclosure, the company reported a GAAP annual net loss of $250.26 million (net loss per share of $0.91) alongside its first Adjusted EBITDA profit of $107.2 million, and stated it had secured 1.41GW of contracted IT load across five campuses with a small number of customers including CoreWeave, for total contracted lease revenue of approximately $36.2 billion. Following the earnings release, the stock fell -12.8% during regular trading on 2026-07-29 versus the prior close.
Price-Change Context Note
The stock, which was around $42.70 as of 2026-06-12, declined over roughly a month to around $28.84 on 2026-07-13; during this period, the fact that a substantial portion of revenue ($152.4 million) was one-time tenant fit-out fees, along with total debt of approximately $5.0 billion, were both cited. The closing price as of the reference date (2026-07-31) was 27.39 USD, down -2.07% from the previous close of 27.97 USD.
Business Overview
Applied Digital Corporation designs, builds, and operates data centers and colocation facilities for AI, cloud, networking, and blockchain workloads (having transitioned its business from cryptocurrency mining hosting to AI data centers). Operations consist of three segments: Data Center Hosting (serving cryptocurrency mining customers, approximately 286MW in North Dakota), Cloud Services (ChronoScale, GPU computing), and HPC Hosting (AI data center leasing for large hyperscalers). On 2025-12-30, the company combined its cloud business unit with Ekso Bionics Holdings to form ChronoScale Corporation (NASDAQ: CHRN, with APLD holding approximately 97% equity) (merger completed 2026-05-05, A).
5-Year Financial Trend
Annual revenue grew from $8.55 million in FY2022 to $611.31 million in FY2026, with the FY2025→FY2026 period's +167% growth standing out in particular. GAAP net losses persisted throughout the period, and the FY2026 net loss of $250.26 million was the largest in absolute terms. The FY2026 gross margin was approximately 25.8%, an improvement over prior years, which is interpreted as reflecting the expanding share of the HPC Hosting segment in revenue (E).
| Fiscal Year | End Date | Revenue | Gross Profit | Operating Income/Loss | Net Income/Loss | EPS |
|---|---|---|---|---|---|---|
| FY2022 | 2022-05-31 | $8.55M | -$0.96M | -$20.9M | -$23.54M | -$0.41 |
| FY2023 | 2023-05-31 | $55.39M | $11M | -$42.91M | -$44.65M | -$0.47 |
| FY2024 | 2024-05-31 | $165.58M | $17.24M | -$98.34M | -$149.27M | -$1.31 |
| FY2025 | 2025-05-31 | $228.57M | $11.81M | -$72.18M | -$233.68M | -$1.16 |
| FY2026 | 2026-05-31 | $611.31M | $157.68M | -$236.46M | -$250.26M | -$0.91 |
Valuation (Factual Multiples)
TTM GAAP consolidated EBITDA is -$169.08 million (stockanalysis.com, as of 2026-08-03), reflecting a loss position; this is a separate metric calculated differently from the Q3 FY2026 segment adjusted EBITDA profit of $44.1 million (GAAP consolidated vs. non-GAAP segment-adjusted, A). During web research, differing snapshots such as a P/S of 39.7x and EV/EBITDA of -21.38x were also found, presumed to result from differences in the point-in-time and calculation period used, though the exact cause was not confirmed (not available). A comparison table of relative valuation multiples against peers is not available.
Competitor Comparison
APLD originally started as a bitcoin mining hosting company and has since transitioned to AI/HPC data center leasing; peer companies that followed the same path are the most direct comparison group. Traditional large colocation companies (Digital Realty, Equinix) have different business models and are compared only for reference.
| Company | Ticker | Key Contracts / Positioning | Recent Results (as of source date) |
|---|---|---|---|
| Applied Digital | APLD | 1.41GW contracted across 5 campuses, leases to hyperscalers including CoreWeave | FY2026 Q4 revenue $258.7M (period ended 2026-05-31, +407% YoY) |
| IREN (Iris Energy) | IREN | MS 200MW $9.7B contract (2025-11), NVIDIA 5-year $3.4B AI Cloud contract | Q3 FY2026 revenue $144.8M, net loss $247.8M |
| Cipher Mining | CIFR | AWS 300MW long-term contract | Not available |
| TeraWulf | WULF | Anchor tenants including Google, HPC lease revenue share 60%+ | Q1 FY2026 HPC lease revenue $21M (not total revenue) |
| Core Scientific | CORZ | Rising alongside data center rebound phase | Not available |
| Hut 8 | HUT | AI transition in progress, contract details not available | Not available |
IREN is the most frequently cited comparison in coverage; compared to IREN, which has diversified contracts across multiple customers including MS and NVIDIA, APLD's contracted revenue is concentrated with CoreWeave and one particular hyperscaler (see risk factors for the customer concentration item).
Governance & Disclosures
BlackRock's ownership stake was subsequently updated to 4.3% in an SC 13G/A (filed 2026-07-27, as of 2026-06-30), moving it below the 5% holder threshold (A). The board consists of 6 members including Chairman & CEO Wes Cummins (5 outside directors). The most recently filed Form 4s show the CEO, CFO, and President acquiring performance share units alongside a concurrent tax-withholding disposition (2026-06-22, at $45.20 per share), and two outside directors also filed small stock dispositions (25,000 and 10,000 shares respectively, in April 2026, at $32.00-$34.98 per share) (SEC EDGAR Form 4).
Supply & Demand
Short interest declined for three consecutive settlement periods, from 30.4% as of the 2026-05-15 settlement date to 27.02% (as a percentage of float) as of the 2026-07-15 settlement date. During the same period, insider dispositions were limited to a single director filing (25,000 shares, April 2026), and the CEO's large acquisition was related to performance share unit vesting and unrelated to market sales. The put/call ratio based on options open interest is 0.43 (fintel.io, snapshot as of access date).
Macro Impact
| Factor | Current Value (as of) | Transmission Summary | Impact |
|---|---|---|---|
| Fed funds rate | 3.50-3.75% (held 2026-06-17) | Rate holding steady → continued base-rate burden on new debt financing | Negative |
| CCC high-yield credit spread | 9.20pp (2026-05, FRED) | Tight unsecured financing conditions for sub-investment-grade companies | Negative |
| Power procurement (MDU power supply agreement) | Up to 430MW (signed 2026-06-23) | Use of stranded wind power → estimated $50-60 million annual power cost savings vs. a 100MW-class benchmark | Positive |
| AI GPU supply/demand | Demand exceeds supply by 1.4-1.6x (industry estimate) | GPU scarcity → incentive for hyperscalers to lock in long-term leases | Positive |
| Federal permitting acceleration policy (EO 14318) | Effective 2025-07 | Streamlined permitting for projects of 100MW / $500 million or more | Positive |
| Short interest | 23.97-27% range (as of 2026-07) | Amplifies event-driven price volatility | Neutral |
News Timeline
- 2026-07-27 · FY2026 Q4/full-year earnings release (revenue $258.7M/+407%, annual $611.31M/+167%, adjusted EBITDA $42.4M) — Applied Digital IR
- 2026-07-27 · 8-K filing — total contracted lease value $36B (+125% YoY), 3 new 15-year leases totaling 810MW signed — SEC EDGAR
- 2026-07-29 · Stock fell -12.8% in regular trading; market focused on the $152.4M one-time tenant fit-out fee portion of revenue and the scale of debt — TechTimes
- 2026-06-22 · Signed 430MW power supply agreement with Montana-Dakota Utilities (Polaris Forge 3, initial operation planned for 2027-08) — PR Newswire
- 2026-06-08 · Secured $550M revolving credit facility (arranged by Goldman Sachs); signed 210MW 15-year lease for Delta Forge 2 on the same date — Applied Digital IR
- Early March 2026 · Nvidia fully disposed of its approximately 7.716M-share APLD stake (approx. $177-182M) held at the end of 2025 (based on 13F filing) — The Motley Fool
- 2026-02-20 · Stock fell -7.90% to close at $29.04 immediately after news of Nvidia's stake liquidation spread — secondary market coverage
Risk Factors
- Customer concentration: one HPC customer accounts for 59% of continuing operations revenue and one crypto hosting customer accounts for 25%, with the top two customers together representing approximately 90% of total contracted revenue (FY2026 10-K, A)
- History of short-seller reports: 2023-07-06 (Bear Cave/Wolfpack Research, stock -14.2%), 2026-03-12 (Wolfpack again, raising concerns about transaction structures related to Base Electron, stock -11.59%)
- Capital-raising burden: senior secured note coupons in the 6.75-9.25% range, CCC high-yield spread stuck at 9.20pp, TTM GAAP EBITDA of -$169.08M (A)
- Power and construction execution: potential delays in grid interconnection and construction schedules at new sites (a typical industry factor, E)
- GPU and customer technology changes: potential impact of GPU generational shifts and changes in supply structure on long-term lease demand (E)
- Governance and related-party transactions: allegations raised in Wolfpack's March 2026 report regarding transaction structures related to Base Electron (an affiliate holding a 10% stake in APLD) (A)
Theme Relevance
Fact Highlights
Generated by FomoLog Agent · Data sources: Korea Exchange · NASDAQ · DART · SEC EDGAR