# Applied Digital Revenue Jumps 407% to $258.7M in Fiscal Q4 as AI Data Center Leases Hit $36B > Source: > Published: 2026-07-29 18:52:54.587244+00:00 # Applied Digital Revenue Jumps 407% to $258.7M in Fiscal Q4 as AI Data Center Leases Hit $36B - Q4 revenue reached $258.7M (+407% YoY), with HPC hosting contributing $203M; full-year revenue hit $611.3M (+167%) [[1]](https://ir.applieddigital.com/news-events/press-releases/detail/159/applied-digital-reports-fiscal-fourth-quarter-and-full-year) - Adjusted EPS of $0.04 beat the consensus estimate of -$0.19 by a wide margin, marking the company's first quarterly adjusted profit [[1]](https://ir.applieddigital.com/news-events/press-releases/detail/159/applied-digital-reports-fiscal-fourth-quarter-and-full-year)[[3]](https://www.investing.com/news/earnings/applied-digital-jumps-on-fourth-quarter-earnings-beat-93CH-4815025) - Applied Digital signed $36B in total contracted lease value across five campuses, including ~$20B added in Q4 alone, with 1.4 GW of contracted IT load [[1]](https://ir.applieddigital.com/news-events/press-releases/detail/159/applied-digital-reports-fiscal-fourth-quarter-and-full-year) - The company raised $3.74B in senior secured notes and established a $550M revolving credit facility to fund buildout [[1]](https://ir.applieddigital.com/news-events/press-releases/detail/159/applied-digital-reports-fiscal-fourth-quarter-and-full-year) - Shares rose ~3.4% in after-hours trading following the report [[3]](https://www.investing.com/news/earnings/applied-digital-jumps-on-fourth-quarter-earnings-beat-93CH-4815025) Applied Digital posted fiscal fourth-quarter revenue of $258.7 million, a 407% increase from $51.1 million a year earlier, as its pivot to hyperscale AI data center leasing began producing results at scale [1]. HPC hosting, the company's largest segment, generated $203 million of the total, including $152.4 million in tenant fit-out revenue and $44.1 million in base rent. For the full fiscal year ended May 31, 2026, revenue rose 167% to $611.3 million. The company posted a GAAP net loss of $249.2 million, but on an adjusted basis, net income turned positive at $36.1 million, or $0.11 per diluted share, compared with an adjusted net loss of $12.5 million a year earlier [1]. The results substantially exceeded Wall Street expectations. Analysts had projected Q4 revenue of roughly $95 million and an adjusted loss of $0.19 per share, making the $258.7 million revenue print a 171% beat and the $0.04 adjusted EPS a clear positive surprise [[2]](https://finance.yahoo.com/markets/stocks/articles/applied-digital-earnings-look-apld-034113706.html) [3]. Shares rose approximately 3.4% in after-hours trading Monday . [[3]](https://www.investing.com/news/earnings/applied-digital-jumps-on-fourth-quarter-earnings-beat-93CH-4815025)## The Numbers The HPC hosting segment drove the quarter, generating $203 million in revenue with $26.2 million in operating profit. Of that revenue, $152.4 million came from tenant fit-out work (constructing data center infrastructure to tenant specifications), $44.1 million from base rent, and $6.5 million from tenant recoveries [1]. The data center hosting business, which supports bitcoin mining customers, contributed $37.3 million in revenue with $12.5 million in operating profit, roughly flat year-over-year. Adjusted EBITDA for Q4 reached $42.4 million, up from $1 million a year ago. For the full year, adjusted EBITDA was $107.2 million, compared to $19.6 million in fiscal 2025 [1]. SG&A expenses rose sharply to $165.3 million in the quarter, driven largely by $116.8 million in stock-based compensation. On the balance sheet, Applied Digital ended the year with $1.6 billion in cash and $2.4 billion in restricted cash, against $5.0 billion in long-term debt. Total assets reached $9.9 billion, up from $1.9 billion a year earlier, reflecting massive capital deployment into data center construction [1]. Operating cash flow turned positive at $89.7 million for the full year, compared to negative $115.4 million in fiscal 2025, though free cash flow remained deeply negative at negative $2.78 billion due to $2.87 billion in capital expenditures. ## Context and Reaction Applied Digital has transformed from a modest hosting operation into one of the largest independent AI data center developers in the U.S. over the past 18 months. The company's contracted portfolio now spans five campuses with 1.41 GW of critical IT load and approximately $36 billion in total contracted lease revenue over 15-year base terms, with renewal options that could extend the total to roughly $86 billion [1]. The stock had fallen roughly 30% heading into the report, reflecting concerns about the company's heavy debt load and execution risk on its ambitious buildout plans [2]. The after-hours gain of 3.4% suggests investors found the revenue trajectory and lease signings encouraging, though the modest reaction may reflect caution about the GAAP losses and $5 billion debt balance . [[3]](https://www.investing.com/news/earnings/applied-digital-jumps-on-fourth-quarter-earnings-beat-93CH-4815025)During fiscal Q4, Applied Digital signed three major leases: Delta Forge 1 in Louisiana (300 MW, ~$7.5B), Polaris Forge 3 (300 MW, ~$7.5B), and Delta Forge 2 (210 MW, ~$5.2B), adding approximately $20 billion in contracted value [1]. To fund the buildout, the company issued $2.15 billion in 6.75% senior secured notes and $1.59 billion in 7.0% senior secured notes, both due 2031, and established a $550 million revolving credit facility arranged by Goldman Sachs. ## What Management Said CEO Wes Cummins framed the year as a turning point: "Nearly three years ago, we made a deliberate decision to build a company that scales, not just a company that builds data centers. We believe this repeatable, differentiated platform is why we have emerged as one of the clear leaders in AI infrastructure" [1]. On execution, Cummins emphasized on-time delivery as a competitive advantage: "We brought Polaris Forge 1's first 100 MW online on schedule and have now scaled total live capacity at the campus to 175 MW" [1]. He also noted the data center hosting (bitcoin mining) business "remains the highest return-on-assets business in the company," with revenue tied to capacity rather than bitcoin prices. Applied Digital also disclosed that it owns approximately 10% of Base Electron Corp, an independent power producer developing roughly 1.2 GW of natural gas generation in the Dakotas, and holds approximately 96% of ChronoScale Holdings, its separated cloud services business [1]. ## Forward Look Applied Digital did not issue explicit financial guidance for fiscal 2027. However, management noted the company is actively marketing an additional 1.7 GW of capacity across multiple states, which would more than double its current contracted portfolio if fully signed [1]. The near-term trajectory depends on converting tenant fit-out revenue into recurring base rent as campuses come online. Polaris Forge 1 is currently live at 175 MW, with the remaining contracted campuses expected to begin operations between 2027 and the first half of 2028. With $4.2 billion in total liquidity and a $36 billion contracted backlog, the company is well-funded for its current pipeline, though the pace of additional lease signings and the cost of financing will be key variables to watch. ## Companies mentioned ## Further sources The stories that matter, in one email. Free — unsubscribe anytime.