Applied Digital Corp. (APLD) FY2026 10-K Annual Report

Filed: Jul 29, 2026
Information Technology
Services-Computer Processing & Data PreparationSEC EDGAR

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 Metrics
XBRL

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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