Short answer
Applied Digital Corp. (APLD) filed its fiscal 2026 10-K annual report with the SEC on Jul 29, 2026. It reported revenue of $611M (+167.5% year over year) and net income of −$250M.
- Top risk flagged: Regulatory risk: potential material impact from U.S. tariffs on imports of construction materials, jeopardizing timely completion of HPC and AI projects
FY2026 key financial metrics · XBRL
- Revenue
- $611M
- +167.5% YoY
- Net income
- −$250M
- −7.1% YoY
- Operating margin
- -38.7%
- −31.3 pp YoY
- EPS (diluted)
- −$0.91
- +21.6% YoY
- ROE
- -14.6%
- +32.4 pp YoY
- Operating cash flow
- $90M
- +177.7% YoY
Source: XBRL data from the Applied Digital Corp. (APLD) FY2026 10-K on SEC EDGAR. USD.
Applied Digital Corp. FY2026 10-K analysis
AI summary of each section, grounded in the filing text
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
Generated from the filing text; verify against the original. How to read a 10-K
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