Applied Digital Corp. (APLD) FY2026 10-K Annual Report
Applied Digital Corp. (APLD) 10-K annual report for fiscal year 2026, filed with SEC EDGAR on Jul 29, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
Applied Digital Corp. FY2026 10-K Analysis
Business Overview
- • Core business: design, develop, own, operate large-scale HPC data centers for AI, machine learning, and accelerated-compute under long-term leases
- • New emphasis: expanded Polaris Forge 2 and Delta Forge 1 & 2 HPC campuses with 710 MW combined capacity under long-term leases signed in 2025-2026
- • Strategic shift: accelerated transition from legacy blockchain hosting to AI-focused HPC data centers, targeting ~$36.2B total contracted revenue for 1,410 MW capacity
- • Quantitative highlight: workforce growth to ~256 employees as of May 31, 2026, supporting rapid multi-GW HPC capacity expansion pipeline
- • Noteworthy fact: separation and Nasdaq listing of cloud business ChronoScale in May 2026, with divestiture plan for exoskeleton Legacy Ekso business
Management Discussion & Analysis
- • Contracted lease portfolio 1,410 MW, ~$36.2B revenue over initial 15-year leases
- • Data Center Hosting revenue 25%, HPC Hosting 59% from one major customer each in FY 2026
- • Operating data centers 100 MW generating revenue, 1.5 GW under construction or contracted
- • Capital raised: $196.4M in ATM offerings, $1.04B from Series G Preferred Stock issuance
- • Risks: supply chain delays, construction risks, regulatory scrutiny on AI and energy use
Risk Factors
- • Regulatory risk: potential material impact from U.S. tariffs on imports of construction materials, jeopardizing timely completion of HPC and AI projects
- • Geopolitical exposure: reliance on North Dakota operations with concentrated regulatory framework, market conditions, and natural disaster risks
- • Operational vulnerability: dependence on third-party suppliers for power, risking service failures, price hikes, and supply volatility affecting data centers
- • Competitive disruption: AI efficiency advancements could reduce demand for high-power liquid-cooled data center infrastructure, impacting business and results
- • Financial risk: significant indebtedness with restrictive covenants, refinancing risk, and potential dilution from $2B preferred stock and convertible notes issuance
Applied Digital Corp. FY2026 Key Financial MetricsXBRL
Revenue
$611M
▲ +167.5% YoY
Net Income
-$250M
▼ -7.1% YoY
Operating Margin
-38.7%
▼ -3131bp YoY
Net Margin
-40.9%
▲ +6130bp YoY
ROE
-14.6%
▲ +3238bp YoY
Total Assets
$9.9B
▲ +431.0% YoY
EPS (Diluted)
$-0.91
▲ +21.6% YoY
Operating Cash Flow
$90M
▲ +177.7% YoY
Source: XBRL data from Applied Digital Corp. FY2026 10-K filing on SEC EDGAR. All figures in USD.
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