TLDR
- APLD Soars on $11B Lease Deal, Despite Q1 Loss and Rising Operating Costs
- Applied Digital Posts 84% Revenue Surge, Signs Massive CoreWeave Lease
- $11B CoreWeave Deal Boosts APLD Outlook Despite Q1 Profit Pressures
- APLD Eyes $1B NOI With Expansion, CoreWeave Deal Anchors Growth
- Applied Digital Expands to 1.6B Infra Buildout, Secures $362M Post-Q1
Applied Digital Corporation (NASDAQ: APLD) closed the regular session at $29.29, gaining 4.83% on Thursday. The stock dipped slightly to $28.96 in after-hours trading, reflecting a 1.13% decrease.
Applied Digital Corporation (APLD)
Revenue Jumps 84% While Profitability Remains Pressured
Applied Digital posted fiscal Q1 2026 revenue of $64.2 million, marking an 84% year-over-year increase. The growth came from higher tenant fit-out services and expanded hosting operations across its facilities. However, the company reported a net loss of $27.8 million, translating to a loss of $0.11 per share.
While revenue accelerated, profitability remained challenged due to higher operating costs and rising stock-based compensation. The cost of revenue increased 144%, and SG&A expenses rose 165% year-over-year. Adjusted EBITDA fell to $0.5 million from $6.3 million in the prior-year quarter, reflecting margin pressure.
Adjusted net loss stood at $7.6 million, or $0.03 per share, after excluding non-cash and one-time charges. The company ended the quarter with $114.1 million in cash and $687.3 million in debt. These figures exclude $362.5 million in capital raised after the end of the quarter.
CoreWeave Lease Secures $11B in Future Revenue
A major highlight came from leasing the entire 400 MW capacity at its Polaris Forge 1 campus to CoreWeave. The agreement adds $11 billion in anticipated contracted lease revenue over roughly 15-year terms. This includes two prior lease deals totaling $7 billion, signed earlier this year.
The company completed leasing with an additional 150 MW deal signed this quarter, while tenant fit-out is underway for initial occupancy. Construction of the first 100 MW building remains on time and on budget, with completion targeted for Q4 2025. A second 150 MW building at Polaris Forge 1 is also under active development.
These agreements are expected to provide long-term revenue visibility and scale for Applied Digital’s expanding infrastructure. The company also secured $112.5 million from a $5 billion preferred equity facility with Macquarie to fund these developments. This funding aims to reduce equity dilution and support rapid scaling.
Expansion of Polaris Forge 2 and Financing Momentum
Applied Digital broke ground on Polaris Forge 2, which is designed for AI and high-density workloads. The initial 200 MW phase is scheduled to begin coming online in 2026, with a full 1 GW buildout possible by 2027. A lease is under negotiation with a hyperscaler that may secure full capacity rights.
The company secured $50 million from Macquarie Equipment Capital for Polaris Forge 2’s development. It also raised another $200 million through Series G preferred stock to bolster its capital reserves. Management emphasized its structured financing model and capital recycling strategy.
The company has now built and financed over $1.6 billion in infrastructure across both campuses. Leadership targets $1 billion in net operating income within five years, backed by multi-year lease agreements. Ongoing discussions for future expansion and power procurement could position Applied Digital for gigawatt-scale growth by the end of the decade.
