Q4 2026 Applied Digital Corp Earnings Call Transcript
Key Points
- Applied Digital Corp (APLD) signed leases for five campuses, creating $36 billion in total contracted long-term lease value, with $20 billion of that in the last quarter.
- The company delivered 100 megawatts of Polaris Forge 1 on time and on budget, showcasing strong execution capabilities.
- Applied Digital Corp (APLD) is constructing five multibillion-dollar AI factory campuses for three separate hyperscalers, highlighting its industry leadership.
- The company achieved a 407% increase in total revenues from the comparative prior quarter, demonstrating significant financial growth.
- Applied Digital Corp (APLD) has secured financing needs for its projects, including a $2.15 billion senior secured notes and a $300 million senior secured bridge facility, ensuring financial stability for future expansions.
- The company reported a net loss attributable to common shareholders of $111.6 million, indicating financial challenges despite revenue growth.
- Stock-based compensation increased significantly, contributing to a rise in SG&A expenses by $124.3 million this quarter.
- Applied Digital Corp (APLD) faces potential constraints in power availability and supply chain limitations, which could impact future growth.
- The company's operations are heavily reliant on a few high investment-grade hyperscalers, which may pose a risk if these relationships change.
- Despite strong revenue growth, the company's adjusted net income was only $12.9 million, suggesting that profitability remains a challenge.
Good afternoon, and welcome to Applied Digital's fiscal fourth-quarter 2026 conference call. My name is [Pascale Berman], and I will be your operator today.
Before this call, Applied Digital issued its financial results for the fiscal fourth quarter ended May 31, 2026, in a press release, a copy of which has been furnished in a report on 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's Chairman and CEO, Wes Cummins; and CFO, Saidal Mohmand. Following their remarks, we will open the call for questions.
Before we begin, Matt Glover from Gateway Group will make a brief introductory statement. Mr. Glover, you may begin.
Thank you, operator. Hello, everyone, and welcome to Applied Digital's fiscal fourth-quarter 2026 conference call.
Before management begins formal remarks, we'd like to remind everyone that some statements we are
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