Applied Digital Unveils Fiscal Q3 2026 Financial Results

Mo. Basuony

Published: April 13, 2026 10:40 AM ET

Applied Digital Unveils Fiscal Q3 2026 Financial Results

Applied Digital unveiled its fiscal Q3 2026 financial results on April 8, 2026. The company reported a large revenue gain but also logged a significant net loss for the quarter.

Quarterly financial snapshot

Revenue for the quarter ended February 28, 2026, was $126.6 million. This figure rose 139% from the prior-year period.

Net loss attributable to common stockholders was $100.9 million. That compared with a $36.1 million loss in the year-ago quarter.

Revenue (Q3 FY2026)	$126.6 million
Net loss (attributable to common)	$100.9 million (‑$0.36 per share)
Adjusted revenue (non‑GAAP)	$108.6 million
Adjusted net income (non‑GAAP)	$33.2 million ($0.09 per diluted share)
Adjusted EBITDA (non‑GAAP)	$44.1 million
Cash, cash equivalents, restricted cash	$2.1 billion
Total debt	$2.7 billion

Drivers of the quarter

The revenue increase reflected ramped activity at the HPC Hosting business. The company recognized a full quarter of revenue from its first HPC building at Polaris Forge 1.

Adjusted results exclude the Cloud Services Business. Management presented non‑GAAP metrics to highlight core data center operations.

Operational progress and construction

Applied Digital broke ground on Delta Forge 1 during the quarter. The campus is being developed as an AI Factory with nameplate capacity and up to 300 MW of critical IT load.

Work continued across the North Dakota campuses. ELN‑02, a 100 MW facility at Polaris Forge 1, is fully operational.

Polaris Forge 2 and other projects

Polaris Forge 2 is a $3 billion, 200 MW campus near Harwood, North Dakota. Foundations are largely complete and interior trades are mobilizing.

Management said initial capacity at Polaris Forge 2 is expected in calendar 2026. Full capacity is targeted by early 2027.

Customer and lease developments

Applied Digital signed a roughly 15‑year lease for 200 MW at Polaris Forge 2 with an investment‑grade U.S. hyperscaler. The agreement was announced in October 2025.

The company restructured leases with CoreWeave for facilities at Polaris Forge 1. These steps included guarantees and a $50 million letter of credit for ELN‑02.

Financing and liquidity moves

Subsequent to the quarter, Applied Digital completed a $2.15 billion private offering. The notes carry a 6.750% coupon and mature in 2031.

Proceeds will help fund 200 MW of critical IT load at Polaris Forge 2. The company also entered a $100 million DevCo facility with Macquarie Equipment Capital.

Segment updates

HPC Hosting: Quarterly revenue totaled $71.0 million. Components included base rent, tenant fit‑out services, and power pass‑through.
Data Center Hosting: The business operates 286 MW for bitcoin mining. Jamestown (106 MW) and Ellendale (180 MW) were at full capacity as of Feb. 28, 2026.
Cloud Services: A proposed business combination with EKSO Bionics was announced on Dec. 30, 2025. The combined entity would operate as ChronoScale, with Applied Digital expected to own about 97% on close.

Results drivers and one‑time items

Cost of revenues rose to $72.8 million, up 48% year over year. SG&A was $79.7 million, driven by stock‑based compensation and transaction costs.

The quarter included a $59.7 million loss related to the Cloud Services Business reclassification. Several fair‑value gains and non‑cash items also affected results.

Management outlook and strategy

CEO Wes Cummins noted the company is focused on scaling its AI Factory platform. Management emphasized delivering operational capacity and stabilizing assets to lower future debt costs.

Applied Digital said its long‑term goal remains more than $1 billion in NOI within five years. The company is marketing four development sites with roughly 1 GW of potential grid power, subject to approvals.