Applied Digital (APLD) Q2 2026 Earnings Report

Applied Digital reported a pivotal QQ2 2026 quarter, marking the transition from construction to revenue generation across its North Dakota HPC data centers. Revenue surged to $126.6 million, up approximately 250% year over year, driven by $73 million of tenant fit-out services for the HPC Hosting Business and the partial-quarter CoreWeave lease at Polaris Forge 1. The Data Center Hosting segment contributed $41.6 million, a 15% year-over-year gain, underscoring rapid ramp of hosted capacity as facilities come online. GAAP profitability remained negative, with net loss of $17.5 million and GAAP EBITDA of -$6.48 million, but adjusted EBITDA was a positive $20.2 million, reflecting non-cash charges (notably stock-based compensation) and the non-cash straight-line lease revenue recognition under ASC 842. Balance sheet liquidity remained robust at roughly $2.3 billion in cash and equivalents against about $2.6 billion of debt (net debt approximately $695 million). The company has anchored its long-term growth in a two-campus buildout totaling 600 MW under signed/advanced leases with hyperscalers, and is pursuing additional campuses, expanding capacity to multi-gigawatt scales. Management signaled an important strategic pivot with the ChronoScale spinout (Applied Digital Cloud) in partnership with EKSO Bionics, planned for H1 2026, expected to own >80% of ChronoScale, and positioned to unlock cloud compute growth separate from the data center business. The outlook remains constructive, with management targeting over $1 billion in NOI within five years and continued expansion in advantaged regions (e.g., Dakotas) supported by low-cost energy and modular, scalable design. Investors should assess the near-term cash burn from capex and working capital needs against the longer-term leverage from leased capacity and potential upside from ChronoScale and Corintis-backed cooling tech.