Applied Digital Corporation Q1 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

  • Revenue: $64.2 million — an 84% increase year-over-year from $34.8 million in Q1 FY2025, largely due to $26.3 million in tenant fit-out revenue from CoreWeave at Polaris Forge One.
  • Adjusted EBITDA: $5 million, compared to $6.3 million in the prior year period.
  • Net Loss: GAAP net loss of $27.8 million or $0.11 per share; adjusted net loss of $7.6 million or $0.03 per share.
  • SG&A Expenses: $29.2 million, up from $11 million in Q1 FY2025, driven by $16.6 million in stock-based compensation and $3.9 million in personnel costs.
  • Cash & Debt: Cash balance of $114.1 million; total debt of $687.3 million (excluding post-quarter-end $362.5 million proceeds from financing).

Key Business Updates

  • CoreWeave Expansion: Updated lease agreement at Polaris Forge One data center from 250 to 400 megawatts, increasing total contract value from $7 billion to $11 billion over 15 years.
  • Polaris Forge Two Groundbreaking: Construction begun at new 300-megawatt campus near Harwood, ND. Total cost estimated at $3 billion; targeted to come partly online in late 2026 and reach full capacity by 2027.

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Operator: Good afternoon, and welcome to Applied Digital Fiscal First Quarter 2026 Conference Call. My name is Constantine, and I will be your operator for today. Before this call, Applied Digital issued its financial results for the fiscal first quarter ended August 31, 2025, in a press release, a copy of which has been furnished in a report on a Form 8-K filed with the Securities and Exchange Commission or SEC and will be available in the Investor Relations section of the company's website. Joining us on today's call are Applied Digital Chairman and CEO, Wes Cummins, and CFO, Saidal Mohmand. Following their remarks, we will be opening the call for questions. Before we begin, Matt Glover from Gateway Group will make a brief introductory statement. Mr. Glover, you may begin. Matt Glover: Thank you, operator. Hello, everyone, and welcome to Applied Digital's Fiscal First Quarter 2026 Conference Call. Before management begins formal remarks, we'd like to remind everyone that some statements we're making today may be considered forward-looking statements under securities laws and involve a number of risks and uncertainties. As a result, we caution you that there are a number of factors, many of which are beyond our control, which could cause actual results and events to differ materially from those described in the forward-looking statement. For more detailed risks, uncertainties, and assumptions relating to our forward-looking statements, please see the disclosures in our earni

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