Applied Digital Reports A One-Cent Adjusted Loss, Yet Its Filing Shows $0.82 A Share To Common Holders
Add-backs shrink a $168.0 million continuing-operations loss to $4.1 million, while cash interest paid reached $242.9 million.
Applied Digital told investors on Wednesday that its adjusted net loss was $4.1 million, or $0.01 a share. The 10-Q shows a standard-accounting net loss from continuing operations of $168.0 million and a loss of $0.82 a share to common stockholders.
How the gap is built
The reconciliation in the filing bridges the two figures with add-backs. They include $59.4 million of stock-based compensation, $49.5 million of derivative losses and $11.4 million of investment losses.
The list also removes $25.4 million of operating loss from ChronoScale. That is the consolidated cloud subsidiary that management leaves out of adjusted measures. The filing says ChronoScale is no longer an operating or reportable segment, because a separate management team runs it and the company's chief decision-maker does not review its results to allocate resources.
A year earlier the same adjusted measure was a loss of $7.6 million, or $0.03 a share. The prior quarter's filing showed adjusted net income of $33.2 million. That figure is not like-for-like, because it used the old definition.
Debt and a market-value test
Cash interest paid was $242.9 million, versus $9.0 million a year earlier.
The filing schedules $6.7 billion of debt obligations. A new Texas Capital loan requires Applied Digital's market capitalization to stay above $2.0 billion at the close of any trading day. Market data put its market value at $7.6 billion at Wednesday's close, when the shares were $23.81, down 6.04%.
The lease note lists $35.7 billion of minimum contracted lease payments, almost all due after fiscal 2031. That sits against the $6.7 billion of scheduled debt principal.
The company was a crypto-mining host that has turned into an AI data-center builder financed largely with debt and preferred equity. Management says it judges the business through its two hosting segments. The prior quarter's filing says the company also backs Base Electron obligations through a guarantee, and certain officers and directors hold stakes in that power developer.
What to watch
The first semi-annual interest payments on the 7.000% notes are due December 15, 2026. Next quarter's related-party note should show the October 4 power purchase agreement signed with Base Electron.
The company held about 96% of ChronoScale as of August 31, 2026.
Sources
- 10-Q Filing — Applied Digital (APLD) — SEC EDGAR
- 10-Q Filing — Applied Digital (APLD), Q1 2026 filed 2026-04-08 (comparison basis) — SEC EDGAR
- 10-K Filing — Applied Digital (APLD), filed 2026-07-29 (earlier disclosure) — SEC EDGAR
- Applied Digital Reports Wider 1Q Loss as Revenue Soars — MarketWatch
- Applied Digital Delivers Q1 Double Beat, Shares Rise — benzinga.com
- Applied Digital to Post Q1 Earnings: Is It Time to Hold or Fold? — Yahoo Finance
- Applied Digital Q1 Preview: Stock Down 50% From Year Highs, Can Earnings Help Build Momentum Back? — benzinga.com
- Applied Digital’s Earnings Show Its Data Center Bet Is Starting to Pay Off — Barron's
