$APLD

Key Notes
In FQ2 2026, revenue came in at $126.6M, +$45.39M above the $81.21M consensus. Non-GAAP EPS was $0.00, above consensus.
Adjusted EBITDA $20.2M. Adjusted operating margin 9%.
The operational story is hyperscale data center scaling in North Dakota: Polaris Forge 1 ready-for-service (100 MW energized), and a 200 MW, 15-year lease announcement for Polaris Forge 2.
Management provided a framework of 600 MW lease capacity and about $16B prospective lease revenue for the North Dakota campuses. They also shared “advanced discussions” for 3 sites and 900 MW.
On the balance sheet side, quarter-end $2.3B cash + cash equivalents + restricted cash, $2.6B debt, and about $2.1B equity were highlighted.
5 Critical Metrics
Revenue: $126.6M (consensus $81.21M) +$45.39M beat
Non-GAAP EPS: $0.00 (consensus -$0.12) beat
Adjusted EBITDA: $20.2M
Liquidity: $2.3B (cash + cash equivalents + restricted cash)
Debt / Maturity: $2.6B debt, most due 2030. Also, $2.35B 9.25% senior secured notes due 2030 were completed
5 Catalysts
Lease ramp: CoreWeave lease start at Polaris Forge 1 (partial quarter) and the 2026–2027 commissioning schedule.
600 MW contracted capacity and about $16B prospective lease revenue scale narrative.
New hyperscaler pipeline: 3 sites and 900 MW “advanced discussions” (with timing uncertainty noted).
ChronoScale plan: Applied Digital Cloud’s ChronoScale merger with EKSO (LOI), closing target H1 2026. APLD >80% ownership expectation.
Energy options: earlier power option with the Babcock & Wilcox solution. Also, an investment in Corintis (liquid cooling).
5 Main Risks
Revenue composition: a significant portion of the revenue increase in FQ2 was tenant fit-out services (about $73M) and lease accounting dynamics.
ASC 842 difference: spreading lease revenue recognition over 15 years, creating a difference between cash-based lease (about $8M) and recognized revenue.
Execution / scale risk: parallel construction across multiple campuses, delivery schedule, and supply chain.
Profitability items: GAAP net loss, SBC (within SG&A $23.8M) and increased interest expense.
Contract finalization risk: management’s own warning: “nothing is done until it’s signed.”
Market Reaction
After the results, the stock rose 5.5%–8% in extended trading.