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# Applied Digital's Revenue Hit $341.9 Million, But Interest Costs Of $77.4 Million Left A $221.0 Million Loss
- URL: https://www.bullished.co/applied-digitals-revenue-hit-341-9-million-but-interest-costs-of-77-4-million-left-a-221-0-2392c6ff/
- Published: 2026-10-07T20:50:50.000Z
- Updated: 2026-10-07T20:50:50.000Z
- Description: The data center builder's fiscal first-quarter revenue rose 322% from a year earlier, while interest expense climbed from $8.0 million.
- Author: Matteo Parrino
- Tags: Earnings, APLD, Industry: Technology

Applied Digital's revenue for the quarter ended August 31 was [$341.9 million](https://www.sec.gov/Archives/edgar/data/0001144879/000114487926000057/apldq127earningsrelease.htm?ref=bullished.co), up 322% from a year earlier, but the net loss to common stockholders from continuing operations was $221.0 million, or $0.76 per share. A year ago the loss was $18.5 million, or $0.07, according to the earnings release attached to an [8-K](https://www.sec.gov/Archives/edgar/data/0001144879/000114487926000057/apld-20261007.htm?ref=bullished.co) filed Wednesday.

## What the results show

Most of the growth came from the HPC hosting business, which leases data center space for AI computing. It earned $262.6 million, made up of $183.5 million from tenant fit-out services (work to outfit customers' space), $65.8 million of base rent and $13.3 million of tenant recoveries. The unit's operating profit was $33.4 million.

The crypto-mining hosting business was flat: $37.8 million of revenue versus $37.9 million a year earlier, with $13.3 million of segment operating profit. Its Jamestown and Ellendale, North Dakota, sites were running at full capacity.

Excluding majority-owned ChronoScale, the company reported an adjusted net loss of $4.1 million, or $0.01 per share. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, with other adjustments) was $64.4 million versus $0.5 million a year earlier. Net operating income was $58.8 million.

## Where the loss came from

Interest expense rose to $77.4 million from $8.0 million. The company also booked a $49.5 million loss on the changing value of derivatives and an $11.4 million loss on its Babcock & Wilcox investment.

The company spent $2.07 billion in cash on property and equipment in the quarter. It closed $1.59 billion of 7.000% senior secured notes due 2031, issued at par, to fund a third 150 MW building at Polaris Forge 1 and repay a $300 million bridge facility.

The company holds $3.7 billion in cash against $6.4 billion in debt.

## The pipeline

As of August 31, leases cover about 1.41 GW across five campuses, representing about $36 billion of contracted revenue over initial base terms, or about $86 billion if all renewals are exercised. On October 1, a second 75 MW phase at Polaris Forge 1 brought live capacity there to [250 MW](https://www.globenewswire.com/news-release/2026/10/02/3373779/0/en/applied-digital-brings-an-additional-75-mw-of-ai-infrastructure-online-at-polaris-forge-1.html?ref=bullished.co).

In a separate release Tuesday, the company [disclosed](https://www.globenewswire.com/news-release/2026/10/06/3375266/0/en/applied-digital-secures-up-to-1-gw-of-potential-power-capacity-in-finland-marking-first-international-development-in-the-nordics.html?ref=bullished.co) up to about 1 GW of potential power capacity in Finland, its first site outside the U.S. CEO Wes Cummins said "we view every new restriction elsewhere as making what we already own harder to replicate."

Shares closed at $23.81 Wednesday and were quoted at $24.31 in after-hours trading, a delayed reading from before the 4:43 p.m. ET filing.

## What to watch

Management hosts a call Wednesday at 5:00 p.m. ET. It expects initial operations at Polaris Forge 2 to lift delivered North Dakota capacity to 300 MW by the end of calendar 2026.

The next marker is that 300 MW North Dakota target for the end of calendar 2026.

### Sources

- [8-K Filing — Applied Digital Corp. (APLD)](https://www.sec.gov/Archives/edgar/data/0001144879/000114487926000057/apld-20261007.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit apldq127earningsrelease.htm — Applied Digital Corp. 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001144879/000114487926000057/apldq127earningsrelease.htm?ref=bullished.co) — SEC EDGAR
- [Applied Digital climbs on securing 1GW power site for European AI campus](https://sg.finance.yahoo.com/news/applied-digital-climbs-securing-1gw-155235383.html?ref=bullished.co) — Yahoo Finance
- [Applied Digital Brings an Additional 75 MW of AI](https://www.globenewswire.com/news-release/2026/10/02/3373779/0/en/applied-digital-brings-an-additional-75-mw-of-ai-infrastructure-online-at-polaris-forge-1.html?ref=bullished.co) — globenewswire.com
- [Applied Digital Secures Up to 1 GW of Potential Power](https://www.globenewswire.com/news-release/2026/10/06/3375266/0/en/applied-digital-secures-up-to-1-gw-of-potential-power-capacity-in-finland-marking-first-international-development-in-the-nordics.html?ref=bullished.co) — globenewswire.com