Q1 2026 Applied Digital Corp Earnings Call Transcript
Key Points
- Applied Digital Corp (APLD) expanded its long-term lease agreements with CoreWeave, increasing the total contract value to approximately $11 billion.
- The company broke ground on a new campus, Polaris Forge 2, with initial construction funding secured and plans to scale to 1 gigawatt.
- Applied Digital Corp (APLD) secured an initial $112.5 million draw from a $5 billion preferred equity facility with Macquarie Asset Management, ensuring financing alignment for future projects.
- The company reported a significant increase in revenues for the first fiscal quarter of 2026, up 84% from the previous year.
- Applied Digital Corp (APLD) has a robust multi-gigawatt pipeline and is actively evaluating new sites across additional states and regions to meet accelerating demand.
- The company reported a net loss of $27.8 million for the first fiscal quarter of 2026.
- Stock-based compensation expenses increased significantly, contributing to higher SG&A costs.
- The cloud services business is under strategic review and classified as held for sale, indicating potential divestment.
- Interest expenses increased compared to the previous year, impacting overall financial performance.
- The company faces challenges in scaling development and construction to meet the high demand for AI infrastructure.
Good afternoon, and welcome to Applied Digital's fiscal first-quarter 2026 conference call. My name is Constantin 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, and 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 to Digital's 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 Gately Group will make a brief introductory statement. Mr. Glover, you may begin.
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
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