The massive GAAP loss and cash burn from construction capex overshadow the revenue beat and operational milestones. Monitor the conference call for guidance on when the HPC rental revenue stream will cover operating costs and debt service, and for any update on the pace of new lease signings.
Price Chart
Executive Summary
Applied Digital reported Q1 FY2027 revenue of $341.9M (+322% YoY), well above the $159.3M consensus, driven by HPC hosting tenant fit-out services and new rental revenue. However, GAAP net loss attributable to common stockholders widened to $221.0M ($0.76/share) vs consensus of -$0.17, reflecting massive stock-based compensation, interest expense, and mark-to-market losses on derivatives and investments. The adjusted net loss was only $4.1M ($0.01/share), but the GAAP miss is severe and the company's cash burn remains heavy.
Key Financial Metrics
Key Facts
- Revenue $341.9M vs consensus $159.3M — a 114.6% revenue beat
- GAAP EPS -$0.76 vs consensus -$0.17 — a 347% miss
- Adjusted net loss $4.1M ($0.01/share) vs adjusted net loss $7.6M ($0.03) a year ago
- Adjusted EBITDA $64.4M vs $0.5M a year ago
- HPC Hosting revenue $262.6M (base rent $65.8M, fit-out $183.5M, recoveries $13.3M)
- Data Center Hosting revenue $37.8M, flat YoY
- Cash, cash equivalents, and restricted cash $3.7B; total debt $6.4B
- Operating cash flow positive $63.9M; investing cash flow -$2.08B (construction capex)
- Live capacity at Polaris Forge 1 reached 250 MW post-quarter; 1.41 GW total contracted
- Signed PPA for ~1.2 GW gas-fired generation in North Dakota; secured up to 1 GW potential in Finland
Financial Impact
GAAP net loss of $221M on $341.9M revenue; adjusted net loss of $4.1M; $6.4B debt vs $3.7B cash; operating cash flow positive $63.9M but investing cash burn $2.08B
Risk Factors
- GAAP EPS miss of 347% vs consensus signals severe earnings quality issues from non-cash charges and dilution
- Debt ballooned to $6.4B from $5.0B in one quarter; interest expense surged 866% YoY to $77.4M
- Cash burn from investing activities ($2.08B) far exceeds operating cash flow ($63.9M), requiring continuous capital market access
- Stock-based compensation of $66.5M continues to dilute shareholders significantly
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001144879-26-000057 |
| Document: apld-20261007.htm | 0001144879-26-000057 |
| Document: 0001144879-26-000057-index-headers.html | 0001144879-26-000057 |
| Document: 0001144879-26-000057-index.html | 0001144879-26-000057 |
| Document: 0001144879-26-000057.txt | 0001144879-26-000057 |
| 8-K Data (Synthetic) | 0001144879-26-000057 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 19, 2026 8d ago | Insider Cluster | $19.25 $17.83 | ▼ −7.38% | ▼ −7.23% | $19.51 (+1.35%) |
Oct 13, 2026 14d ago | 144 | $20.33 $20.98 | ▲ +3.22% | ▲ +2.77% | $19.51 (−4.01%) |
Oct 7, 2026 20d ago | 8-K | $23.85 $20.39 | ▲ +14.51% | ▲ +14.23% | $19.51 (+18.20%) |
Sep 28, 2026 29d ago | Press Release | $25.41 $25.34 | ▼ −0.28% | ▼ −2.22% | $19.51 (−23.22%) |
Sep 25, 2026 4w ago | DEFA14A | $24.53 $24.70 | ▲ +0.69% | ▼ −0.51% | $19.51 (−20.46%) |
Sep 25, 2026 4w ago | DEF 14A | $24.53 $24.70 | ▲ +0.69% | ▼ −0.51% | $19.51 (−20.46%) |
Jul 27, 2026 13w ago | 8-K | $26.62 $29.49 | ▲ +10.78% | ▲ +8.51% | $19.51 (−26.71%) |
Jun 26, 2026 17w ago | 8-K | $37.77 $33.50 | ▼ −11.31% | ▼ −12.69% | $19.51 (−48.35%) |
Jun 16, 2026 19w ago | 8-K | $45.57 $41.98 | ▼ −7.88% | ▼ −6.84% | $19.51 (−57.19%) |
Jun 12, 2026 19w ago | Institutional Cluster | $42.70 $46.59 | ▲ +9.11% | ▲ +8.44% | $19.51 (−54.31%) |
US Market Status
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