Applied Digital's Adjusted Ebitda Reaches $64.4 Million
Revenue was $341.9 million in the fiscal first quarter ended August 31, 2026, as HPC Hosting posted $262.6 million and Polaris Forge 1 reached 175 MW of live capacity.
Applied Digital Corporation (APLD), a U.S. designer, developer, owner, and operator of purpose-built data centers for high-performance computing, reported revenue of $341.9 million for the fiscal first quarter ended August 31, 2026, up 322% from the year-earlier period.
That year-over-year growth rate slowed from 407% in the fiscal fourth quarter ended May 31, 2026, when revenue was $258.7 million. Adjusted revenue, which excludes ChronoScale, was $300.4 million. Adjusted EBITDA was $64.4 million. Net Operating Income, a non-GAAP measure defined as HPC Hosting base rental revenue less related operating expenses, was $58.8 million. Adjusted net loss was $4.1 million, or $0.01 a share.
GAAP results told a different story. Net loss attributable to common stockholders was $221.0 million, or $0.76 a share. Interest expense was $77.4 million, up from $8.0 million a year earlier, as debt arrangements increased. Interest income was $35.8 million. A $49.5 million loss on the change in fair value of derivatives and an $11.4 million loss on the change in fair value of an investment in Babcock & Wilcox common stock also weighed on the GAAP loss. Selling, general and administrative expenses were $114.7 million, up 289% from $29.5 million a year earlier, including $51.7 million more stock-based compensation, $9.9 million more personnel expense, and $12.1 million more professional services.
HPC Hosting was the operating engine. Segment revenue totaled $262.6 million, including $65.8 million of base rent, $183.5 million of tenant fit-out services, and $13.3 million of tenant recoveries, producing $33.4 million of segment operating profit. Services revenue was $262.8 million, up 225% from $80.9 million a year earlier, primarily due to an increase in tenant fit-out services of about $157.2 million and $23.0 million of GPU hardware sales related to ChronoScale. Data center rental and other revenue was $79.1 million, versus none a year earlier, as HPC Hosting commenced rental operations in the second quarter of fiscal 2026. Services cost of revenues was $245.7 million, up from $58.8 million a year earlier, primarily due to about $151.1 million more tenant fit-out expenses and about $22.4 million of GPU hardware sales related to ChronoScale.
The Data Center Hosting Business, which provides energized space to crypto mining customers, generated $37.8 million in revenue, compared with $37.9 million a year earlier, with $13.3 million of segment operating profit on $111.9 million of reported assets. The 106 MW facility in Jamestown, North Dakota, and the 180 MW facility in Ellendale, North Dakota, were operating at full capacity.
Capacity at Polaris Forge 1 expanded during the quarter. Phase 1 of Building 2 (75 MW) became Ready for Service on July 1, 2026, bringing total live capacity at the campus to 175 MW. A second 75 MW phase was delivered after quarter-end, bringing live capacity to 250 MW. The company closed $1.59 billion of 7.000% Senior Secured Notes due 2031 to fund construction of the third 150 MW HPC building at Polaris Forge 1 and to repay a $300 million bridge facility. As of August 31, 2026, cash, cash equivalents, and restricted cash were $3.7 billion and debt was $6.4 billion.
Lease coverage continued to widen. On June 8, 2026, the company signed a 210 MW, 15-year lease at Delta Forge 2 with a tier-one investment-grade hyperscaler, representing about $5.2 billion of base-term contracted revenue. As of August 31, 2026, leases covered about 1.41 GW of critical IT load across five campuses, representing about $36 billion of contracted revenue over initial base terms, or about $86 billion if all renewal options are exercised. Polaris Forge 1 is leased to CoreWeave; Polaris Forge 2, Delta Forge 1, Polaris Forge 3, and Delta Forge 2 are leased to investment-grade hyperscalers.
Initial operations at Polaris Forge 2 in Harwood are expected to increase delivered critical IT load across the company's North Dakota campuses to 300 MW by the end of calendar 2026. The company also signed an agreement for up to approximately 1 GW of potential power capacity in Finland and entered a power purchase agreement with Base Electron for capacity from an approximately 1,200 MW natural gas-fired generation facility to be developed in North Dakota. ChronoScale, in which Applied Digital owns approximately 96%, announced plans with Microsoft for a 50 MW AI compute deployment in North America featuring NVIDIA GB300 NVL72 systems.