DALLAS, July 27, 2026 (GLOBE NEWSWIRE) -- Applied Digital Corporation (Nasdaq: APLD) ("Applied Digital" or the Company"), a U.S.-based designer, developer, owner, and operator of large-scale, purpose-built data centers engineered to support high-performance computing ("HPC") workloads, including artificial intelligence ("AI"), machine learning, and other accelerated-compute applications, reported financial results for the fiscal fourth quarter ended May 31, 2026. The Company also provided operational updates.

During the quarter, the Company completed the separation of its Cloud Services Business in a series of transactions that resulted in the Company owning approximately 96% of the issued and outstanding equity of ChronoScale Holdings Corporation, f/k/a ChronoScale Corporation ("ChronoScale") as of the end of the fiscal year. ChronoScale, a public company, owns and operates our historic cloud services business and is consolidated into our financial statements, but excluded from the non-GAAP financial measures set forth below. Unless otherwise specified, disclosures in this earnings release, including the below, reflect continuing operations only.

Fiscal Fourth Quarter 2026 Financial Highlights

   -- Revenues: $258.7 million, up 407% from the prior year comparable period 
 
   -- Net loss attributable to common stockholders: $110.6 million, down 108% 
      from the prior year comparable period 
 
   -- Net loss attributable to common stockholders per basic and diluted share: 
      $0.39, up 63% from the prior year comparable period 
 
   -- Adjusted revenue: $240.4 million 
 
   -- Adjusted net income: $12.9 million 
 
   -- Adjusted net income per diluted share: $0.04 
 
   -- Adjusted EBITDA: $42.4 million 
 
   -- Net Operating Income: $39.9 million 

Fiscal Year 2026 Financial Highlights

   -- Revenues: $611.3 million, up 167% from the prior year comparable period 
 
   -- Net loss attributable to common stockholders: $249.2 million, down 7% 
      from the prior year comparable period 
 
   -- Net loss attributable to common stockholders per basic and diluted share: 
      $0.91, down 22% from the prior year comparable period 
 
   -- Adjusted revenue: $539.7 million 
 
   -- Adjusted net income: $36.1 million 
 
   -- Adjusted net income per diluted share: $0.11 
 
   -- Adjusted EBITDA: $107.2 million 
 
   -- Net Operating Income: $90.4 million 

Adjusted revenue, Adjusted net income (loss), Adjusted net income (loss) per diluted share, Adjusted EBITDA, and Net Operating Income are non-GAAP measures. A reconciliation of each of these Non-GAAP Measures to the most directly comparable financial measure presented in accordance with accounting principles generally accepted in the United States ("GAAP") is set forth below. These non-GAAP measures exclude the results of ChronoScale. See "Reconciliation of GAAP to Non-GAAP Measures."

Recent Highlights

   -- Signed a 15-year take-or-pay lease with a new U.S. based, high 
      investment-grade hyperscaler for 300 megawatts ("MW") of critical IT load 
      at Delta Forge 1, a new AI Factory campus in Boyce, Louisiana. The lease 
      provides for approximately $7.5 billion in base-term contracted revenue, 
      with initial operations expected to commence calendar year 2027. 
 
   -- Signed a second 15-year take-or-pay lease with the same high 
      investment-grade hyperscaler for 300 MW at Polaris Forge 3, which 
      provides for approximately $7.5 billion in base-term contracted revenue, 
      with initial operations expected to commence during calendar year 2027. 
 
   -- Completed a $2.15 billion private offering of 6.750% Senior Secured Notes 
      due 2031 (issued at 98% of par) through its subsidiary APLD ComputeCo 2 
      LLC. Proceeds will fund development of 200 MW of critical IT load at 
      Polaris Forge 2 in Harwood, North Dakota. 
 
   -- Closed a revolving credit facility of up to $550 million ($350 million 
      committed + $200 million accordion), arranged by Goldman Sachs and 
      maturing in May 2029, to support pre- and post-lease development across 
      campuses. 
 
   -- Enhanced credit quality on existing CoreWeave leases through a 
      restructured SPV subsidiary, unconditional springing guarantees from 
      CoreWeave, Inc., and a $50 million letter of credit. These changes 
      followed CoreWeave's investment-grade A3-rated refinancing and provide 
      additional security for the Company's 9.250% Senior Secured Notes due 
      2030. 
 
   -- Closed a $300 million senior secured bridge facility led by Goldman Sachs 
      to support development of the fourth building (150 MW) at Polaris Forge 1 
      (which has been repaid with the proceeds from the Senior Secured Notes 
      Offering described below). 
 
   -- Completed the separation of our cloud services business, combining it 
      with Ekso Bionics Holdings, Inc. to form ChronoScale (Nasdaq: CHRN), an 
      independent publicly traded accelerated-compute platform. Applied Digital 
      currently owns approximately 96% of ChronoScale. 

Subsequent to the Quarter

   -- Signed a third 15-year take-or-pay lease with the same high 
      investment-grade hyperscaler for 210 MW at Delta Forge 2 (fifth AI 
      Factory campus, third consecutive with this customer) in a new southern 
      state. The lease provides for approximately $5.2 billion in base-term 
      contracted revenue, with initial operations expected in the first half of 
      calendar 2028. 
 
   -- Entered a Memorandum of Understanding with CoreWeave to assign the 
      Building 4 lease at Polaris Forge 1 to a CoreWeave subsidiary upon 
      achieving an investment-grade credit rating. 
 
   -- Closed $1.59 billion of 7.000% Senior Secured Notes due 2031 (issued at 
      par) through our subsidiary APLD ComputeCo 3 LLC. Proceeds from this 
      offering were used to repay the $300 million bridge facility and will 
      fund the construction of the fourth building (150 MW), at Polaris Forge 
      1. 
 
   -- Upsized the revolving credit facility, bringing the total committed 
      amount to $430 million, with an additional $120 million accordion 
      remaining. 
 
   -- Achieved Ready for Service for Phase 1 of Building 2 (75 MW) at Polaris 
      Forge 1 on schedule, bringing total live capacity at the campus to 175 
      MW. 

Management Commentary

This was a defining quarter for Applied Digital, capping a defining year. Since the end of last quarter, we have signed three new leases -- at Delta Forge 1, Polaris Forge 3, and Delta Forge 2 -- all with the same high investment-grade hyperscaler and each in a different state. Delta Forge 1 and Polaris Forge 3 each provides for approximately $7.5 billion in base-term contracted lease revenue, while Delta Forge 2 adds approximately $5.2 billion. Together, these deals represent roughly $20 billion in long-term contracted revenue from a single, world-class customer that has now chosen us three times in a row.

With these agreements, we have secured 1.4 gigawatts ("GW") of contracted critical IT load, representing approximately $36 billion in total contracted lease revenue -- or approximately $86 billion if all renewal options are exercised. We are building five multibillion-dollar AI Factory campuses for two hyperscalers and CoreWeave-- a scale that we believe speaks to both the quality of our platform and the trust these customers place in our ability to execute.

"Nearly three years ago, we made a deliberate decision to build a company that scales, not just a company that builds data centers," said Wes Cummins, Chairman and Chief Executive Officer of Applied Digital. "We call it our franchise model -- a core team of design, construction, and operations professionals replicated across every campus, in each market. Combined with our proven supply chain and design approvals from every major hyperscaler, we believe this repeatable, differentiated platform is why we have emerged as one of the clear leaders in AI infrastructure."

"We believe delivering on time is a genuine differentiator in this industry," Cummins continued. "We brought Polaris Forge 1's first 100 MW online on schedule and have now scaled total live capacity at the campus to 175 MW. We're not just securing power -- we're turning it into operational AI capacity."

Beyond the contracted portfolio and the approximately 1.4 GW already under construction, Applied Digital is actively marketing an additional 1.7 GW of capacity across multiple states, we see as underscoring robust demand for its AI Factories.

To fuel sustainable expansion, the Company is advancing a strategic power initiative. Applied Digital is working with Base Electron Corp., an independent power producer who has engaged Babcock & Wilcox to develop approximately 1.2 GW of front-of-the-meter natural gas-fired generation in the Dakotas, in collaboration with regional utilities. Applied Digital shareholders own approximately 10% of Base Electron Corp. through our investment in Base Electron. This deepens access to abundant, reliable, low-cost power -- a critical competitive advantage for both existing campuses and future growth.

"We are still in the early innings of what we believe will likely be the largest buildout of critical infrastructure in modern economic history," Cummins added. "We see demand for high-power-density, purpose-built AI data centers remaining extremely robust. Our approach is simple: Do it the right way. For customers, that means delivering high-quality, GPU-ready facilities on time. For communities, it means creating lasting economic value. When we do right by both, our shareholders win over the long term."

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July 27, 2026 16:05 ET