Applied Digital (APLD) Q2 2026 Financial Results Summary
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Applied Digital (APLD) Q2 2026 Financial Results Summary
DALLAS, TX – January 7, 2026 – Applied Digital Corporation (Nasdaq: APLD) has reported its financial results for the fiscal second quarter ended November 30, 2025. The Company specializes in high-performance, sustainably engineered data centers and colocation services aimed at artificial intelligence, cloud computing, networking, and blockchain workloads.
Fiscal Second Quarter 2026 Continuing Operations Financial Highlights
- Revenues: $126.6 million, up 250% compared to the same quarter last year (Q2 2025).
- Net loss attributable to common stockholders: $31.2 million, down 76% from a net loss of $129.0 million in Q2 2025.
- Net loss per basic and diluted share: $0.11, down 82% from $0.61 per share in Q2 2025.
- Adjusted net income: $0.1 million (or $0.00 per diluted share), compared to an adjusted net loss of $1.5 million (or $0.01 per diluted share) in Q2 2025.
- Adjusted EBITDA: $20.2 million, a significant increase from $6.1 million in Q2 2025.
Recent Highlights
- Operational Developments:
- Achieved “Ready-for-Service” status at Polaris Forge 1, delivering 100 MW on schedule.
- Announced an approximately 15-year lease with an investment-grade hyperscaler for 200 MW of AI and HPC capacity at Polaris Forge 2, potentially generating about $5 billion in revenue.
- Completed a $2.35 billion private offering of 9.25% senior secured notes due 2030, enabling key funding for the Polaris Forge facilities and debt service reserves.
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Drew $562.5 million from Macquarie Asset Management under a preferred equity financing facility.
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Investment Initiatives:
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Invested $15 million into Corintis, a company developing direct-to-chip liquid cooling technology, enhancing Applied Digital’s position in high-density, AI-optimized data centers.
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Plans for the Future:
- Drew an additional $337.5 million from Macquarie for continued Polaris Forge 1 development.
- Announced plans to spin out Applied Digital Cloud, merging it with EKSO Bionics to form ChronoScale, with an expected initial ownership of over 80% upon closing.
Key Metrics and Operational Performance
- Revenue Breakdown:
- HPC Hosting Business: Revenue of $85.0 million driven by the full energization of the first building at Polaris Forge 1.
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Data Center Hosting Business: Revenue of $41.6 million, representing a 15% increase from $36.2 million in Q2 2025.
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Cost Analysis:
- Cost of Revenues: Increased to $100.6 million, a rise of 344% from Q2 2025.
- Selling, General and Administrative Expenses: Jumped to $57.0 million, increasing by 119% from Q2 2025.
- Interest Expense: Rose to $11.5 million, up 292% from the previous year.
Balance Sheet Highlights
- As of November 30, 2025:
- Total cash, cash equivalents, and restricted cash amounted to $2.3 billion.
- Total assets were $5.2 billion, against liabilities of $3.2 billion.
- Approximately $2.1 billion in temporary and stockholders’ equity.
Shareholder Actions
- There was no quarterly dividend declared for this reporting period.
- The company previously engaged in repurchasing shares, now holding 7.2 million shares in treasury stock.
Conclusion
Applied Digital holds a robust position in the high-performance computing sector as evidenced by substantial revenue growth and a significantly reduced net loss in Q2 2026. With an increasing focus on strategic partnerships and expansion into critical areas of technology, the company is poised for notable growth in the coming quarters.
Upcoming Events
- Applied Digital will host a conference call today, January 7, 2026, at 5:00 PM ET to discuss these results, featuring a question-and-answer session afterwards.
APPLIED DIGITAL CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share data)
| Three Months Ended | Three Months Ended | |
|---|---|---|
| November 30, 2025 | November 30, 2024 | |
| Revenue: | ||
| Revenue | $ 126,589 | $ 36,163 |
| Related party revenue | — | — |
| Total revenue | 126,589 | 36,163 |
| Costs and expenses: | ||
| Cost of revenues | 100,553 | 22,661 |
| Selling, general and administrative(1) | 56,993 | 25,974 |
| Gain on classification as held for sale(2) | — | 192 |
| Loss on abandonment of assets | — | 141 |
| Total costs and expenses | 157,546 | 48,968 |
| Operating (loss) income | -30,957 | -12,805 |
| Interest expense, net | 11,484 | 2,929 |
| Gain on change in fair value of derivative | -13,126 | — |
| Gain on change in fair value of investment | -2,767 | — |
| Loss on conversion of debt | — | 25,410 |
| Loss on change in fair value of debt | — | 87,218 |
| Net (loss) income before income tax expenses | -26,548 | -128,362 |
| Income tax expense | 15 | 1 |
| Net (loss) income from continuing operations | -26,563 | -128,363 |
| Net (loss) income from discontinued operations | 12,113 | -10,363 |
| Net loss | -14,450 | -138,726 |
| Net loss attributable to noncontrolling interest | -3,061 | — |
| Preferred dividends | -1,571 | -629 |
| Net loss attributable to common stockholders | -19,082 | -139,355 |
| Net loss attributable to common stockholders | ||
| Continuing operations | -31,195 | -128,992 |
| Discontinued operations | 12,113 | -10,363 |
| Net loss | -19,082 | -139,355 |
| Basic and diluted net (loss) income per share attributable to common stockholders | ||
| Continuing operations | -0.11 | -0.61 |
| Discontinued operations | 0.04 | -0.05 |
| Basic and diluted net loss per share | -0.07 | -0.66 |
| Basic and diluted weighted average number of shares outstanding | 277,423,733 | 209,560,339 |
APPLIED DIGITAL CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands, except share and par value data)
| November 30, 2025 | May 31, 2025 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 1,913,436 | $ 41,552 |
| Restricted cash | 205,121 | 72,368 |
| Accounts receivable | 13,345 | 3,043 |
| Prepaid expenses and other current assets | 272,012 | 9,430 |
| Current assets held for sale | 313,403 | 304,200 |
| Total current assets | 2,717,317 | 430,593 |
| Property and equipment, net | 2,001,450 | 1,239,941 |
| Operating lease right of use assets, net | 656 | 960 |
| Finance lease right of use assets, net | 1,532 | 17,820 |
| Other assets | 508,389 | 180,776 |
| TOTAL ASSETS | $ 5,229,344 | $ 1,870,090 |
| LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS’ EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $ 92,911 | $ 247,528 |
| Accrued liabilities | 207,454 | 29,549 |
| Current portion of operating lease liability | 632 | 692 |
| Current portion of finance lease liability | 1,366 | 13,633 |
| Current portion of debt | 12,555 | 10,331 |
| Customer deposits | 16,752 | 16,125 |
| Deferred revenue | 29,444 | — |
| Due to customer | 2,658 | 4,807 |
| Current liabilities held-for-sale | 161,318 | 216,047 |
| Other current liabilities | 38,311 | 19,432 |
| Total current liabilities | 563,401 | 558,144 |
| Long-term portion of operating lease liability | 105 | 381 |
| Long-term portion of finance lease liability | 8 | 15 |
| Long-term debt | 2,594,011 | 677,825 |
| Total liabilities | 3,157,525 | 1,236,365 |
| Commitments and contingencies (Note 15) | ||
| Temporary equity | ||
| Series E preferred stock, $0.001 par value, 2,000,000 shares authorized, 301,673 shares issued and 281,673 shares outstanding at November 30, 2025, and 301,673 shares issued and outstanding at May 31, 2025 | 6,432 | 6,932 |
| Series E-1 preferred stock, $0.001 par value, 62,500 shares authorized, 62,500 shares issued and 62,260 shares outstanding at November 30, 2025, and 62,500 shares issued and 62,485 shares outstanding at May 31, 2025 | 56,796 | 57,011 |
| Series G preferred stock, $0.001 par value, 1,030,000 shares authorized, 43,250 shares issued and outstanding at November 30, 2025 and 78,000 shares issued and outstanding at May 31, 2025 | 41,990 | 72,094 |
| Redeemable noncontrolling interest | 516,972 | — |
| Stockholders’ equity: | ||
| Common stock, $0.001 par value, 600,000,000 shares authorized, 286,248,510 shares issued and 279,083,210 shares outstanding at November 30, 2025, and 234,200,868 shares issued and 224,909,669 shares outstanding at May 31, 2025 | 287 | 230 |
| Treasury stock, 7,165,300 shares at November 30, 2025 and 9,291,199 shares at May 31, 2025, at cost | -52,737 | -31,400 |
| Additional paid in capital | 2,014,459 | 1,009,913 |
| Accumulated deficit | -512,380 | -481,055 |
| Total stockholders’ equity attributable to Applied Digital Corporation |