New York, October 8, 2026 Applied Digital Corporation (APLD) reported a remarkable first quarter for fiscal 2027, with a 322% year-over-year surge in revenue to $341.9 million. The catch, however, is the net loss of $221.0 million, or $0.76 per share, due to higher stock-based compensation and noncash losses related to investment fair value adjustments. Revenue growth was driven by significant expansion in tenant fit-out services and high-performance computing rental income.
Excluding the $41.5 million contribution from the ChronoScale subsidiary for non-GAAP reporting purposes, adjusted revenue stood at $300.4 million. Contracted revenue totaled $36 billion, spanning five campuses across three states with initial base lease terms of at least 15 years.
The HPC segment accounted for $262.6 million of this revenue, with $65.8 million in base rent and $183.5 million from tenant fit-out services. Data center hosting revenue remained consistent at $37.8 million, supported by the operation of 286 megawatts for Bitcoin mining. Net operating income in the HPC hosting business reached $58.8 million, achieving an 89% margin.
As of August 31, 2026, the company held $2.9 billion in cash and equivalents, supplemented by $700 million in restricted cash. Total debt stood at $6.4 billion, with over 80% of the principal maturity scheduled for fiscal 2031 or later.
Financing activity included $1.59 billion in 7% senior secured notes due 2031, which funded the construction of the third building at Polaris Forge 1 and repaid a $300 million bridge facility. Delivered capacity reached 250 megawatts, reflecting the achievement of ‘Ready for Service’ for the first two buildings at the Polaris Forge 1 campus. Near-term capacity guidance indicated 600 megawatts of capacity expected to be placed into service over the next 12 months.
The North Dakota capacity target was set at 300 megawatts across regional campuses by the end of the calendar year. Long-term operating portfolio target aims for 3.5 to 4 gigawatts of total capacity online by the end of calendar 2030. The expansion lease pipeline includes 250 megawatts expected to be executed by calendar year-end at pricing at least 15% higher than previous contracts.
A power purchase agreement for 1,200 megawatts was secured through a long-term agreement with Base Electron for a natural gas facility in North Dakota starting in 2030. International expansion potential includes 1 gigawatt of power capacity in Finland to establish a European market presence.
ChronoScale’s annual recurring revenue (ARR) is targeted to reach $1 billion in 2027 based on current contract momentum and new cloud service deployments. A Microsoft deployment of 50 megawatts represents an AI compute deployment featuring NVIDIA GB300 systems at ChronoScale. Looking ahead, Chairman and CEO Wesley Cummins noted increasing local moratoriums, tighter zoning requirements, longer permitting timelines, and greater community resistance in certain markets, which increase the complexity of starting new data center developments.
CFO Mohammad Saidal Mohmand indicated confidence in funding upcoming campuses but noted that project-level debt could be influenced by a rate environment that may move around 50 to 100 basis points.
