Fiscal Second Quarter 2026 Financial Highlights

• Revenues: $126.6 million, reflecting a remarkable 250% increase compared to the same period last year.
• Net loss attributable to common stockholders: $31.2 million, down 76% year-on-year.
• Net loss per share: $0.11, showing an 82% reduction from the prior year.
• Adjusted net income: $0.1 million.
• Adjusted EBITDA: $20.2 million.

Adjusted financial metrics are non-GAAP measures, which include Adjusted Net Income from Continuing Operations and Adjusted EBITDA. A detailed reconciliation of these measures to GAAP-compliant figures is available below in the “Reconciliation of GAAP to Non-GAAP Measures.”

Recent Operational Highlights

• Achieved Ready-for-Service at Polaris Forge 1, delivering 100 MW on schedule.
• Signed a 15-year lease with a U.S. investment-grade hyperscaler for 200 MW of AI capacity at Polaris Forge 2, expected to contribute approximately $5 billion in revenue.
• Completed a $2.35 billion private offering of senior secured notes, which will fund the construction and operational expenses at Polaris Forge.
• Drew an additional $562.5 million from Macquarie Asset Management under a preferred equity financing facility of up to $5.0 billion.
• Invested $15 million in Corintis, enhancing expertise in advanced cooling technologies for high-density data centers.

Post-Quarter Updates

• Drew $337.5 million from Macquarie for continued development of Polaris Forge 1.
• Entered a development loan facility with Macquarie Equipment Capital for initial financing of potential AI factory campuses.
• Announced plans to spin out Applied Digital Cloud through a business combination with EKSO Bionics Holdings (Nasdaq: EKSO), creating ChronoScale.

Management Insights

Applied Digital has secured leases with two hyperscalers across its North Dakota campuses. The partnership with CoreWeave for 400 MW represents an estimated $11 billion in revenue. An additional investment-grade hyperscaler holding a lease for 200 MW at Polaris Forge 2 could bring about $5 billion in revenue.

Wes Cummins, Chairman and CEO, remarked, “The Dakotas provide an attractive landscape for hyperscalers due to favorable climate conditions and energy resources. Our capability to execute complex data center projects gives us a competitive edge.”

To finance these multi-billion-dollar contracts, Applied Digital has created a robust financing framework involving leading financial institutions. The company has drawn $900 million under its financing arrangements, ensuring over 85% common equity retention in each project while minimizing public capital market exposure.

Financial Position

At the end of the reporting period, Applied Digital reported approximately $2.3 billion in cash and equivalents, $5.2 billion in total assets, and $3.2 billion in liabilities, indicating a strong balance sheet with manageable debt maturing primarily in 2030.

Saidal Mohmand, CFO, stated, “Our strong liquidity allows us to efficiently complete projects, generate cash flow, and manage debt effectively, positioning us favorably in the industry.”

Future Outlook

Applied Digital remains focused on responsible development while managing strategic investments. As the company progresses towards new construction and revenue-generating projects, it is well-prepared to leverage its competitive advantages in the rapidly evolving data center sector.