The massive lease wins and $36B contracted backlog transform the revenue visibility story, but the GAAP loss and heavy stock-based compensation are real. Monitor the Q1 FY2027 earnings call for updates on construction milestones at Delta Forge 1 and Polaris Forge 3, and for any additional hyperscaler lease signings on the 1.7 GW of marketed capacity. The stock's re-rating depends on converting backlog into cash-flowing NOI.
Price Chart
Executive Summary
Applied Digital reported Q4 FY2026 revenue of $258.7M (+407% YoY), massively beating the $95.3M consensus, driven by $152.4M in tenant fit-out services and $44.1M in base rent from its HPC Hosting business. However, GAAP EPS of -$0.39 missed the -$0.19 consensus by 105%, weighed down by $116.8M in stock-based compensation and a $59.7M write-down on the Cloud Services Business. The headline story is the transformative lease wins: three new 15-year take-or-pay leases with a single high-investment-grade hyperscaler for 810 MW, representing ~$20B in base-term contracted revenue, bringing total contracted capacity to 1.4 GW and ~$36B in contracted lease revenue. The stock will trade on the massive backlog and execution credibility, not the GAAP loss.
Key Financial Metrics
Key Facts
- Revenue $258.7M, up 407% YoY, vs $95.3M consensus
- GAAP EPS -$0.39 vs -$0.19 consensus (105% miss) due to $116.8M stock-based comp and $59.7M write-down
- Adjusted revenue (ex-ChronoScale) $240.4M; Adjusted EBITDA $42.4M vs $1.0M YoY
- Signed three 15-year take-or-pay leases with a single high-investment-grade hyperscaler for 810 MW total: Delta Forge 1 (300 MW, ~$7.5B), Polaris Forge 3 (300 MW, ~$7.5B), and Delta Forge 2 (210 MW, ~$5.2B)
- Total contracted capacity now 1.4 GW across five campuses, representing ~$36B in base-term contracted revenue (~$86B with all renewals)
- Completed separation of Cloud Services Business into ChronoScale (Nasdaq: CHRN); Applied Digital owns ~96%
- Cash, cash equivalents, and restricted cash $4.2B; total debt $5.0B
- Closed $1.59B of 7.000% Senior Secured Notes due 2031 and upsized revolver to $430M
- Achieved Ready for Service for Phase 1 of Building 2 (75 MW) at Polaris Forge 1, bringing total live capacity to 175 MW
Financial Impact
~$20B in new base-term contracted lease revenue from three hyperscaler leases, plus $1.59B in new debt financing
Risk Factors
- Execution risk on building 1.4 GW of capacity on schedule
- Heavy reliance on a single hyperscaler customer for ~$20B of new contracts
- GAAP losses and high stock-based compensation ($220M FY2026) may pressure sentiment
- High debt load ($5.0B) vs equity ($1.7B) creates financial leverage risk
- Construction and financing risks for five simultaneous AI Factory campuses
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001144879-26-000044 |
| Document: apld-20260727.htm | 0001144879-26-000044 |
| Document: 0001144879-26-000044-index-headers.html | 0001144879-26-000044 |
| Document: 0001144879-26-000044-index.html | 0001144879-26-000044 |
| Document: 0001144879-26-000044.txt | 0001144879-26-000044 |
| 8-K Data (Synthetic) | 0001144879-26-000044 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 27, 2026 9w ago | 8-K | $26.62 $28.85 | ▲ +8.38% | ▲ +5.00% | $25.38 (−4.66%) |
Jun 26, 2026 14w ago | 8-K | $37.77 $27.19 | ▼ −28.01% | ▼ −27.73% | $25.38 (−32.80%) |
Jun 16, 2026 15w ago | 8-K | $45.57 $26.44 | ▼ −41.98% | ▼ −43.30% | $25.38 (−44.31%) |
Jun 12, 2026 16w ago | Institutional Cluster | $42.70 $31.15 | ▼ −27.05% | ▼ −28.83% | $25.38 (−40.56%) |
Jun 11, 2026 16w ago | Institutional Cluster | $41.47 $32.29 | ▼ −22.14% | ▼ −24.03% | $25.38 (−38.80%) |
Jun 9, 2026 16w ago | 8-K | $41.91 $30.71 | ▼ −26.72% | ▼ −28.17% | $25.38 (−39.44%) |
May 5, 2026 21w ago | 8-K | $44.24 $44.71 | ▲ +1.06% | ▼ −1.72% | $25.38 (−42.63%) |
Apr 27, 2026 22w ago | Insider Cluster | $33.67 $45.14 | ▲ +34.07% | ▲ +29.11% | $25.38 (−24.62%) |
Apr 23, 2026 23w ago | 8-K | $36.35 $39.52 | ▲ +8.72% | ▲ +4.09% | $25.38 (−30.18%) |
Apr 23, 2026 23w ago | Press Release | $36.35 $39.52 | ▲ +8.72% | ▲ +4.09% | $25.38 (−30.18%) |
US Market Status
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