TLDR
- Revenue hits $126.6M as first 100MW Polaris Forge facility reaches service
- 400MW CoreWeave buildout advances; second 200MW lease anchors campus growth
- Two hyperscaler deals secure 600MW pipeline with phased delivery to 2027
- Capital base expands via $2.35B notes and Macquarie preferred equity
- Cloud spin-out ChronoScale targets focused accelerated-compute expansion
Applied Digital Corporation(APLD) shares posted sharp quarterly gains as revenue surged and new long-term hyperscaler agreements strengthened the company’s AI infrastructure pipeline. The stock ended the day lower at $29.56, a decline 2.28%.
Applied Digital Corporation, APLD
The company advanced its large-scale data center strategy and expanded its capital base to support multiple high-demand campuses.
APLD Stock: Massive Revenue Surge and Expanding AI Factory Buildout
Applied Digital recorded fiscal second-quarter revenue of $126.6 million, and it tripled results from the same period last year. The company advanced its HPC Hosting operations, and it delivered its first 100 MW facility at Polaris Forge 1. It also recognized partial-quarter rental revenue as the site reached Ready-for-Service status.
The company expanded its buildout momentum and it continued deploying capacity for its contracted 400 MW AI Factory for CoreWeave. It secured significant tenant fit-out payments during the quarter, and it maintained progress across additional campus phases. It also strengthened segment growth as data center hosting output improved.
Applied Digital reduced its net loss to $31.2 million, and it reported higher Adjusted EBITDA of $20.2 million. The company managed higher operating costs tied to expansion activity, and it handled increased professional and personnel expenses. It also reported gains from changes in fair value linked to its Babcock & Wilcox holdings.
Major Hyperscaler Agreements Boost Long-Term Revenue Pipeline
Applied Digital signed two hyperscaler leases that now anchor 600 MW of total contracted capacity. The CoreWeave agreement supports the 400 MW Polaris Forge 1 campus, and it spans long-term revenue across the development timeline. A second investment-grade hyperscaler committed to 200 MW at Polaris Forge 2, and it expanded the company’s reach across the region.
The company positioned both campuses for phased delivery, and it planned capacity additions through 2027. It also reported that new customers entered advanced negotiations for multiple sites across the Dakotas and the southern United States. These discussions strengthened expectations for future lease growth.
Applied Digital forecasted higher long-term NOI, and it projected performance above earlier guidance within five years. It highlighted rising demand for purpose-built AI data centers, and it stated that current and upcoming campuses support that trend. It also reinforced its competitive position as construction milestones continued on schedule.
Financing Structure and Strategic Initiatives Support Rapid Expansion
Applied Digital expanded its capital access with a $2.35 billion senior secured notes offering. It also drew additional preferred equity from Macquarie Asset Management, and it lifted total available funding for current and future AI Factory campuses. The company ended the quarter with $2.3 billion in cash, cash equivalents, and restricted cash.
The company secured a development loan facility to support pre-lease planning, and it prepared new sites for forthcoming hyperscaler commitments. It maintained over 85% ownership of each campus under its financing model, and it limited reliance on public capital markets. This structure enhanced balance-sheet flexibility while supporting accelerated buildout timelines.
Applied Digital also advanced a planned spin-out of its cloud unit through a combination with EKSO Bionics. The new entity, named ChronoScale, will operate as a dedicated accelerated-compute platform. The company expects to retain majority ownership and to create independent growth paths for both operations.
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