Applied Digital Corporation reports US$341.9M revenue, US$221M loss

A new rental stream from AI campuses gives investors a clearer measure of what powered capacity earns while the next buildings are still being financed. Applied Digital Corporation NASDAQAPLD, the Dallas developer and operator of AI data centres, reported US$341.9 million of revenue for its fiscal first quarter ended Aug. 31, 2026, up 322 per cent from a year earlier. Its net loss attributable to common shareholders was US$221.0 million, or US$0.76 a share.

Nasdaq showed the shares at US$25.34 at its Oct. 6, 2026, 4 p.m. EDT close. Applied Digital released the results at 4:27 p.m. EDT on Oct. 7, so that quoted close predates the report and does not measure a reaction to it.

The quarterly filing puts fiscal first quarter services and other revenue at US$262.8 million, compared with US$80.9 million in the year earlier quarter. Data centre rental and other revenue contributed US$79.1 million in the quarter ended Aug. 31, against none in the comparable 2025 quarter. The filing shows an operating loss of US$62.4 million, compared with US$9.8 million a year earlier.

Applied Digital said 250 megawatts of critical IT load were operating at its Polaris Forge 1 campus on Oct. 1, after the quarter ended. It expects initial operations at Polaris Forge 2 to lift delivered load across its North Dakota campuses to 300 megawatts by Dec. 31, 2026. That delivery target, rather than the headline value of leases already signed, is the next dated test of its buildout.

Rental Revenue Rose While Financing Costs Climbed

Its majority-owned ChronoScale Holdings Corporation, an accelerated compute platform that owns the company's former cloud services business, is consolidated in generally accepted accounting principles revenue. Applied Digital's US$300.4 million adjusted revenue for the quarter excludes ChronoScale and is a company-defined non-GAAP measure, so it is not directly interchangeable with US$341.9 million of reported revenue.

The same Aug. 31 filing shows services and other costs of revenue at US$245.7 million, compared with US$58.8 million a year earlier. Interest expense rose to US$77.4 million from US$8.0 million over that span. Those costs sit beside the US$64.4 million of adjusted EBITDA the company reported for the quarter; that non-GAAP measure excludes charges that remain in its net loss.

Cash and cash equivalents stood at US$2.95 billion on Aug. 31, up from US$1.59 billion on May 31, according to the quarterly filing. Long-term debt rose to US$6.26 billion from US$4.96 billion over the same period, and the current portion of debt was US$112.6 million at quarter end. Applied Digital also said it closed US$1.59 billion of seven per cent secured notes due 2031. The proceeds will fund a third 150-megawatt building at Polaris Forge 1 and repay a US$300 million bridge facility.

Leases Cover 1.41 Gigawatts Across Five Campuses

As of Aug. 31, 2026, Applied Digital said its leases covered approximately 1.41 gigawatts of critical IT load across five campuses. The Oct. 7 release did not identify the tier-one hyperscaler behind the Delta Forge 2 lease, signed June 8, 2026. Applied Digital says that 210-megawatt lease represents about US$5.2 billion in base-term contracted revenue.

That June lease was presented in the Oct. 7 results under recent highlights, but it was announced four months earlier. The new operating milestone is the second 75-megawatt phase of Polaris Forge 1's second building, which Applied Digital said reached ready-for-service status on Oct. 1. Its first phase entered service July 1, taking the campus to 175 megawatts before the additional October delivery.

"The Company expects initial operations at Polaris Forge 2 in Harwood to increase delivered critical IT load across our North Dakota campuses to 300 MW by the end of calendar 2026," Applied Digital said in its Oct. 7 earnings release.

The distinction between a signed lease, live load and recognized revenue is also visible in the company's Finnish agreement for up to one gigawatt of potential power, reported Oct. 6. That agreement concerns access to potential electricity supply and does not add an operating gigawatt to Applied Digital's Oct. 1 capacity. A separate power purchase agreement with Base Electron Corp., an independent power producer in which Applied Digital said it held roughly 10 per cent on Oct. 7, covers future capacity and energy from a planned 1,200-megawatt North Dakota gas plant.

Read more: Applied Digital Corporation signs Finnish deal for up to 1GW of potential power

Regional Power Deals Show The Cost Of Expansion

Black Hills Corp. NYSEBKH, the utility serving 1.37 million customers in eight states, said on Oct. 6 that it had signed agreements to provide up to 590 megawatts of grid-connected service to a planned Wyoming data centre. It plans US$1.8 billion of new generation investment from 2027 through 2029, with service expected to begin in late 2027. Black Hills is selling and managing power, while Applied Digital is building and leasing hosting capacity; the two sets of megawatts measure different businesses.

Mugglehead's report on the Black Hills agreements described the utility's timetable and its planned mix of company-owned and third-party resources. For Applied Digital holders, the closest scheduled check is Dec. 31, 2026: its stated target is 300 megawatts of delivered critical IT load across its North Dakota campuses by then.

Read more: Black Hills signs Google power agreements for up to 590 MW in Wyoming